LAST month, Prime Minister Datuk Seri Anwar Ibrahim unveiled the Madani Economy framework, which aims to restructure the economy to increase competitiveness and improve social well-being.
Among other things, the framework detailed a digitalisation agenda, encouraging companies to adopt digital means for their processes, implementing a Digital ID, and transitioning towards a 5G dual network.
Undoubtedly, this approach was inspired by Sarawak’s digital policy, which has been implemented for some time.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg noted the similarities between the framework and Sarawak’s own Post COVID-19 Development Strategy (PCDS) 2030, stating that it aligns with the state’s policies.
While Sarawak has played a significant role politically in contributing to the country’s political stability, polled analysts express confidence that the state can also contribute to the growth of the nation’s economy.
Sarawak leads the digital revolution
The state government has been a pioneer in the digitalisation agenda. In 2017, it unveiled the Sarawak Digital Economy Strategy (SDES) 2018-2022, providing a sense of direction for the country.
Dr Jerome Kueh, a senior lecturer at Universiti Malaysia Sarawak (UNIMAS) and an expert in applied macroeconomics and international economics, stated that the federal government can learn from Sarawak’s implementation of the Madani Economy framework.
“Sarawak has spearheaded digitalisation initiatives with a strong fundamental direction and the establishment of key elements in the ecosystem.
The efforts and policies in digitalisation in Sarawak can serve as references for other states in Malaysia.
Additionally, venturing into diversifying sources of income and sustainable energy indicates that the Sarawak government has a strategic plan to BY NAZMI SUHAIMI tribunenew2019@gmail.com Last of a four-part series A stronger Sarawak strength optimise strengths and available opportunities.
This will indirectly attract business investment due to the innovative and supportive ecosystem in Sarawak,” he said.
Meanwhile, Dr Nor Afiza Abu Bakar, a senior lecturer at UNIMAS Faculty of Economics and Business, said Sarawak, with its pioneering economic policies and strategies, is well-positioned to contribute to the federal government’s Madani economy policy.
“This policy aims to propel Malaysia’s economic growth through investments while also improving social protection for Malaysians by boosting income. The digitalisation agenda, a key pillar of this policy, strongly resonates with Sarawak’s own vision for economic development. Sarawak stands as a beacon of innovation and progress in the context of Malaysian economic policies and strategies.
This puts the state in a unique position to significantly contribute to the federal government’s Madani economy policy, a transformative approach aiming to blend economic growth with enhanced social protection.
The policy’s focus on digitalisation as a primary driver for development echoes Sarawak’s own aspirations and achievements in this realm.
With its rich history of digital evolution, Sarawak has the potential to serve as an example for other states, particularly in the spheres of digital infrastructure, e-commerce, and data-centric industries,” she said.
Sarawak’s roles: political stability, digitalisation, and infrastructure funding
For Sarawak Business Federation (SBF) secretary-general Datuk Jonathan Chai Voon Tok, he believed that Sarawak will continue to play a vital role in the country’s economic development. “Not only economically but also politically.
That’s why Gabungan Parti Sarawak (GPS) remains an integral component of the Unity Government to ensure political stability, which is a prerequisite for attracting foreign investors as well as reviving the post-COVID-19 economy,” he said.
He views the digitalisation agenda outlined under the Madani Economy framework as a testimony that Sarawak is moving in the right direction.
“We need sizable allocations of funds from the annual national budgets to enable us to catch up with our counterparts in Malaya, especially in infrastructure development.
“Hopefully, the rising collection of revenues by Sarawak of late will not become an excuse for providing less funding for Sarawak,” he said. Chai states that Sarawak’s economy is tied to Malaysia’s climate as the monetary system is managed by Bank Negara Malaysia (BNM).
“Any fluctuations in the Ringgit will affect businesses, and we cannot shield ourselves from any trade or taxation policies imposed by the Federal Government.
“When we do well in Sarawak, we can contribute positively to the overall economic development of Malaysia.” An area that requires improvement, according to Chai, is the service delivery in the public sector as it is the backbone of the effectiveness of economic policies.
“We need to improve the delivery of our public services to ensure that the government’s policies can be implemented effectively and efficiently.
“On that note, I hope to see some decentralisation of power from the Federal Government, especially in the issuance of work permits to foreign workers, to expedite and ease the process of doing business at the local level,” he said.
At the same time, he said social security initiatives such as free tertiary education and public health services being made readily available once the state attains a formidable fiscal position are expected.
Fostering expertise for economic transformation
Nor Afiza said Sarawak’s experience in sustainable energy production, such as hydrogen, ammonia, and algae, is invaluable for the country.
“Building a strong economic narrative for a government requires careful planning and strategic communication,” she said, adding that a clear vision and objectives are needed to align with the nation’s goals.
She said policy implementation has to be detailed and communicated clearly, along with regular engagement with stakeholders, including businesses, civil society, and the general public.
Nor Afiza said crafting a compelling economic narrative demands a government to have a clear and articulate vision, underpinned by concrete objectives that echo the sentiments and aspirations of the people.
“Narratives come to life through success stories and real-world case studies.
“To make this narrative resonant and relevant, governments should ensure regular interactions with all stakeholders.” Updates on policy outcomes on a regular basis and an openness to recalibrate strategies based on feedback ensure the narrative is dynamic and adaptive. “In essence, Sarawak’s economic trajectory offers invaluable lessons and expertise. If harnessed efficiently, these insights can fortify the Madani economy policy’s vision,” she said.
Transforming Sarawak’s economic landscape
With the policies implemented throughout Abang Johari’s tenure, the question of what his economic legacy will be does arise. According to Universiti Malaya senior lecturer and socio-political analyst, Associate Professor Dr Awang Azman Awang Pawi, the Premier was able to continue the work of his predecessors, such as Tun Pehin Sri Abdul Taib Mahmud and Pehin Sri Adenan Satem.
He said Abdul Taib was a pioneer of the ‘politics of development,’ and Adenan was the one who started pursuing Sarawak’s rights under the Malaysia Agreement 1963 (MA63).
“Abang Johari was able to utilise the strong foundations left by his predecessors and benefited from their legacies. The State Sales Tax (SST) imposition is done in the MA63 context left by Adenan,” he said.
Awang Azman also noted that Abang Johari and Gabungan Parti Sarawak (GPS) did well to leverage the political instability at the federal level, which allowed Sarawak to make certain demands that, in turn, boosted the state’s economy.
Meanwhile, Universiti Malaysia Sabah (UMS) Social Science senior lecturer Associate Professor Dr Lee Kuok Tiung said the eras of Abdul Taib and Adenan were different from that of Abang Johari. He said the state’s fiscal position and vast reserves were the legacy of Taib’s era, similar to the change that was made during Adenan’s era in terms of MA63.
“While many have doubted Abang Johari when he first took over the administration, these criticisms have been dispelled.”
According to UNIMAS political analyst and researcher Dick Lembang Dugun, with the new economic direction for Sarawak, the Premier has set himself apart from his predecessors.
“He created a new economic legacy for Sarawak that ensures we are not left behind. He deserves credit for this.
More importantly, he has to make sure that rural folk are not left behind in the digital economic development and new technology. “He has to ensure that all policies associated with this will reach the rural folk,” he said.
In the same vein, Chai said the Premier deserves worthy recognition of his political career and will be remembered for his astute leadership in implementing the digital and green economy in the state.
“Through his wisdom, we have managed to double the collection of our revenue, especially through the imposition of SST on petroleum products, and tabled a state budget exceeding RM10 billion a year, which is a phenomenon we have not experienced before.
“Sarawakians should also be grateful to Adenan for initiating the revisiting of MA63 and demanding the devolution of powers to Sarawak from the federal government, and we are thankful that Abang Johari continued this,” he said. For Kueh, Abang Johari’s legacy is delivering vast transformation and tremendous progress to Sarawak through impactful initiatives.
“The diversification of economic activities and venturing into sustainable energy, carbon trading, the establishment of Petroleum Sarawak Berhad (PETROS) and Development Bank of Sarawak (DBOS) positioned Sarawak strategically towards increasing household income and equitable wealth distribution in the long run.
“This is along with the adoption of digitalisation in various sectors, initiatives towards owning an airline, continuous efforts in infrastructure development, including the implementation of Autonomous Rail Transit (ART).”
While each administration has contributed to Sarawak’s economic growth in its unique way, Nor Afiza believed that Abang Johari’s emphasis on a digital economy, sustainable energy production, revenue diversification, inclusive growth, and comprehensive planning sets him apart.
“The focus on harnessing hydrogen, ammonia, and algae energy has not only diversified the state’s energy sources but also demonstrated Sarawak’s commitment to environmental sustainability, setting the state apart in the global fight against climate change,” she said. She viewed that by expanding the state’s revenue streams, it created a more robust and sustainable financial footing for Sarawak’s development initiatives.
“The Premier’s administration has emphasised inclusive economic growth and wealth redistribution. While all administrations have sought to increase state revenue and grow the economy, Abang Johari’s focus on addressing the ‘rich state, poor people’ paradox stands out.
Nor Afiza said the Premier’s push for equitable wealth distribution signals a commitment to ensuring all Sarawakians benefit from economic growth. “The introduction of comprehensive plans like PCDS 2030 focuses on detailed planning, strategic execution, and rigorous monitoring sets a precedent for future administrations,” she said.
