LATELY, there has been a chorus of appreciation as well as recognition for Sarawak due to its economic policies. Week after week, the state government was praised by its federal counterparts, as well as observers who noted the inroads made by Sarawak in areas of technology adoption as well as environmental sustainability.
This was the culmination of the efforts of the state government to provide much-needed impetus to grow the state in terms of the economy as well as infrastructure.
To achieve this, a string of economic strategies was rolled out, such as the Sarawak Digital Economy Strategy (SDES) 2018-2022, the Post COVID-19 Development Strategy (PCDS 2030), and the Sarawak Digital Economy Blueprint (SDEB). It was the combination of these strategies, as well as the active pursuit of renewable energy production such as hydrogen, that caught the attention of the rest of Malaysia.
Going with the global trend
Environmental sustainability is one of the three pillars that were laid out in PCDS 2030 to ensure a clean and healthy environment for current and future generations. The other two were economic prosperity and an inclusive society. Sarawak Business Federation (SBF) secretary-general Datuk Jonathan Chai Voon Tok said the major policy shift under Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg’s stewardship aligns well with the world economic trend.
“With the implementation of the green economy, Sarawak will prosper from the supply of renewable energy, in particular the electricity generated from our hydropower dams, production of hydrogen from our abundant water resources, solar panels, and biofuels produced from algae,” he said.
Chai noted that Sarawak is one of a handful of locations worldwide for carbon storage as it is insusceptible to extreme weather and natural disasters. “With all the ‘green’ initiatives in place, that would help the local entrepreneurs to comply with the environmental regulations imposed by overseas, especially the European Union (EU) and the United States of America (USA), and that would help the local products to gain access to a wider global market.
“This is in tandem with the global trend now; everyone is talking about environmental protection and climate change,” he said.
Chai said entrepreneurs and the business community benefit immensely from the Sarawak government’s commitment to the environmental sustainability agenda as it will ease businesses to comply with a key element of Environmental, Social, and Governance (ESG). “This has become a new set of standards for the bankers to assess any financial applications of the businesses these days.
“Most importantly, we could develop our economy and at the same time, preserve our environment, an invaluable asset and legacy to be left behind for our future generations.”
The global economic trend requires countries to be innovative and resilient towards any economic uncertainties.
According to Universiti Malaysia senior lecturer Dr. Jerome Kueh, an expert on applied macroeconomics and international economics, countries must be able to explore the possibilities of new sources of income to accommodate economic growth in the long run. “Sarawak is on the right path in this sense, diversifying the economic activities and creating a sustainable source of income.
“An example is the adoption of digital technology in various sectors with the development of digital infrastructures to support the digital business ecosystem. “Besides that, venturing into hydrogen, ammonia, and algae reflects initiatives towards sustainable energy sources, instead of relying much on fossil fuel,” he said.
Meanwhile, Universiti Malaysia Sarawak Faculty of Economics and Business senior lecturer Dr Nor Afiza Abu Bakar said the global economic trend is pivoting towards sustainable and digital solutions and is experiencing a ‘Fourth Industrial Revolution’. “
Artificial intelligence, machine learning, big data, and blockchain technologies are revolutionising various sectors, from healthcare and finance to education and transportation. “Sarawak’s emphasis on building a digital economy aligns well with this global trend, and the state is strategically positioned to benefit from the wave of technological innovation,” she said.
Similarly, she said there is a growing global consensus on the need to transition from fossil fuels to more sustainable energy sources. “Climate change concerns, coupled with the realisation that fossil fuel reserves are finite, have pushed countries to explore and invest in renewable energy. Sarawak’s move towards hydrogen, ammonia, and algae as sustainable energy sources is in harmony with this trend.
“These initiatives put Sarawak on the map as a pioneer in sustainable energy in the region, and they can serve as a model for other states and countries,” she said, stressing the importance of human capital to keep pace with the economic vision. Nor Afiza sees the world moving towards a digital and green future, and Sarawak’s policies position it well to thrive in this new era. “Critics may be less than optimistic, but as the saying goes,‘fortune favors the bold,’ and Sarawak’s ambitious policies are a testament to its bold vision for the future.”
The new tiger of ASEAN
The ASEAN Tiger moniker is not something that is thrown around lightly. It is a term used to describe a rapidly growing and economically powerful country or region within the Association of Southeast Asian Nations (ASEAN). In recent years, Sarawak has been gaining recognition as a potential “new tiger” in ASEAN due to its progressive economic policies and sustainable development strategies.
One of the key factors contributing to Sarawak’s rise as a potential economic powerhouse is its focus on digital transformation. The state government has been actively promoting the development of the digital economy and has implemented various initiatives to spur digital adoption across sectors.
Under the Sarawak Digital Economy Strategy (SDES) and the Sarawak Digital Economy Blueprint (SDEB), the state aims to leverage technologies such as artificial intelligence, big data analytics, and e-commerce to drive innovation, enhance productivity, and attract investments. This focus on digitalisation has the potential to position Sarawak as a regional hub for technologydriven industries and create new job opportunities for its residents.
In addition to digital transformation, Sarawak has also been prioritising environmental sustainability.
The state is blessed with abundant natural resources and has been exploring the development of renewable energy sources such as hydropower, hydrogen, ammonia, and algae. By embracing sustainable energy solutions, Sarawak aims to reduce its reliance on fossil fuels, mitigate the impact of climate change, and attract investments in the green economy. Furthermore, Sarawak’s commitment to environmental conservation and carbon storage has been recognised globally, which can enhance its reputation and attract environmentally conscious investors.
The combination of digital transformation and sustainable development has positioned Sarawak as an attractive destination for businesses, investors, and skilled professionals seeking opportunities in a dynamic and environmentally responsible economy.
However, it is important to note that economic development takes time, and there will inevitably be challenges and obstacles along the way. The realisation of Sarawak’s potential as an ASEAN tiger will depend on the successful implementation of its strategies, the ability to attract investments, and the continuous development of human capital in line with the changing economic landscape. Nonetheless, with its proactive approach to economic diversification, digitalisation, and environmental sustainability, Sarawak has laid a strong foundation for its future growth and emergence as a significant player in ASEAN’s economic landscape.
Still a work in progress
While glowing recognition and credit have been given where they are due, the Sarawak government remains cognizant of the fact that a full economic transformation takes time.
The Premier was the first to acknowledge that the state’s economy is developing well, based solely on statistical economic data.
Associate Professor Dr Lee Kuok Tiung, a senior lecturer in Social Science at Universiti Malaysia Sabah (UMS), attributed the recognition by observers to the state’s adoption of digital transformation and hydrogen, which are economies of the future. “Crude oil will run out. Hydrogen cars are better than electric vehicles (EV).
Disposal of EV batteries will be a problem in the future,” he said. He also noted that the state has plans to export energy to Singapore and aims to expand direct transactions with overseas countries. He highlighted the need to address the cabotage policy as one of the issues.
“This policy needs to be reviewed periodically, especially considering that maritime transport is the primary logistics channel for many traders and merchants.” Meanwhile, Dick Lembang Dugun, a political analyst and researcher from UNIMAS, stated that pressing issues persist in rural areas, casting doubt on the recognition by the World Bank, at least in these parts of the state.
“What criteria were used for this recognition? Was it solely based on state income? When we visit rural communities, we find that some are struggling with basic needs and infrastructure,” he said. For them, it remains a sore point and not something they can be proud of, as some of the bread-andbutter issues have not been fully addressed. Associate Professor Dr Awang Azman Awang Pawi, a senior lecturer and socio-political analyst from Universiti Malaya, pointed out the distinction between being a high-income state and a developed state.
“For now, Sarawak is in its early stage of implementing the strategy, and the economic gains should be viewed in the context of its assets,” he said. “However, as it stands, Sarawak is being recognised for its economic policies that promote a hydrogen economy and support digital transition.”
“But these policies need aggressive and comprehensive implementation. So, at this early stage, the policies and initiatives are in place, but they must be pursued vigorously,” he added.
In the next and final part of this series, the writer explores how Sarawak can contribute towards the larger Malaysia economy as well as Abang Johari’s economic legacy
