SARAWAK’s economy is expected to grow at 4.5 to 5.0 percent this year underpinned by the stronger growth in the services and manufacturing sector as well as substantial public spending on infrastructure.
Second Finance Minister Datuk Amar Douglas Uggah Embas said for 2020, the state economy is projected to grow at 5.5 to 6 percent on the back of the continued implementation of major projects such as the Coastal Road Network, Second Trunk Road, Sarawak Water Supply Grid Programme (stressed areas), Rural Electrification Scheme, as well as other rural transformation initiatives that will act as stimulus to cushion the impact of the global economic slowdown.
He said as the global economy continues to face economic and geo-political turbulence and uncertainties, the state needs to maintain its resilience by balancing short-term counter cyclical policies with prudent fiscal management and to focus on strengthening medium-term growth.
“This is even more critical as we are a commodity and resource-based economy, where fluctuations in commodity prices would have a significant impact on our revenue and economic growth,” he said in his winding-up speech yesterday.
In view of that, he said in the 2020 Budget, the Sarawak government will continue to pursue a three-pronged strategy.
“First, to continue to diversify its economy with special focus on modernisation of agriculture, strengthening infrastructure, advancing tourism and accelerating human capital development.
“Secondly, to accelerate the rural transformation initiatives with the implementation of various major infrastructure works such as roads and bridges, basic public amenities and facilities that would help to spur economic growth and stimulate domestic demand
“And thirdly, to enhance the state revenue through revenue re-engineering so that the state could have the fiscal flexibility in managing its financial resources and in strategising its development agenda,” he stressed, adding that this will enable the state to expeditiously implement infrastructure projects and basic amenities throughout the state and at the same time building ample reserves to weather any eventualities.
He said all these strategies are critical in meeting the objectives of accelerating the development in the state and to ensure balanced development between the urban and the rural areas.
“The state will vigorously intensify the implementation of high impact and people-centric projects in line with its development agenda.
“More areas will be opened up for productive economic activities that will provide greater job and business opportunities. This will eventually uplift and enhance the well-being of the rakyat especially the rural community,” Uggah said.
