By Anthony Singon
IT has always been the state government’s focus to make full use of the vast resources available to Sarawak.
With that, the question is how will the people benefit from it? It was this very question that led to policy decisions by the state government to leverage on the state’s resources – bringing in billions in revenue, to be used for its development.
Through the revenue reengineering method by Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg and the rest of the government ministries, it has been able to strengthen the state’s financial position.
To date, Sarawak has been able to diversify its revenue source through the implementation of sales tax, timber tax and increase in investment dividends.
The state’s revenue saw an increase from RM7.2bil in 2018 to RM10.7bil in 2020. This was the result of the policies made as well as strategic decisions to form state-owned companies.
Petroleum Sarawak Berhad (Petros) was established in August 2017 to develop the oil and gas industry in Sarawak. The state also obtained the Block SK437 award off the coast of Sarawak from Petroliam Nasional Berhad (Petronas).
The state government also increased Sarawak’s equity in Malaysia LNG Tiga Sdn Bhd from 10 per cent to 25 per cent, and acquired a 10 per cent equity in Petronas LNG 9 Sdn Bhd in 2018.
It established the Sarawak Development Bank (DBOS) in Nov 2017 to provide alternative development funds.
Through the implementation of the State Sales Tax (SST) on five per cent petroleum products from 2019, the state government was able to earn additional income.
The SST collected from crude oil and liquefied natural gas (LNG), since Jan 1, 2019, had become the major contributor to Sarawak’s revenue, amounting to RM8.52bil.
Through hydropower, the Sarawak government has also been able to generate additional revenue.
This was possible after it took full ownership of the Bakun Hydroelectric Dam (2,400 megawatts) from the federal government.
