SIBU: With its huge development spending of RM9 bln Sarawak is expected to register a growth of 5 per cent this year.
This growth is made possible by the government’s development plan of focusing mostly on infrastructure development.
Chief Minister Datuk Patinggi Abang Johari Tun Openg made this known at a local business dialogue held by Sarawak Chamber of Commerce and Industry (SCCI) here, today.
“With all the infrastructure projects going on, our growth this year will be 5 per cent, which is above the national growth of 4.5 per cent,” he said.
He said RM11.2 bln has been allocated under the state 2019 budget, which is the biggest ever for Sarawak, so as to spur our economic growth.
Of the total allocation, RM6 bln is for logistics which involves the construction of the state’s coastal highway from Kuching to Miri.
“This injection of public fund will stimulate our economic growth. As long as our economy is strong, our fundamentals would be strong,” he said.
The state, he said, also has a strong reserve of RM30 bln as the government has been careful with its spending.
“In fact we have been financially prudent since the time of our former Chief Minister (Pehin Sri Abdul Taib Mahmud). We don’t spend anyhow. Recently we have imposed export tax on petroleum extracted from our territory,” he said.
The additional RM3.8 bln from the 5 per cent petroleum tax collected from Petronas enables the state to build more roads and bridges.
“The PH government which has money problems cancelled the construction of Batang Igan and Batang Lupar Bridge which form the components of the coastal highway. Luckily with the additional money from petroleum tax, we can build them,” he said.
The coastal road will be completed in four to five years cutting driving time covering a distance of 405km between Kuching and Sibu to just three hours. Currently the time taken is between 5 hours 50 minutes and 6 hours 75 minutes depending on the speed preferred by the driver.
Johari also assured that under his administration, no toll will be imposed on bridges in the state.
SCCI president Datuk Abang Abdul Karim Tun Abang Openg also spoke at the function.
