Increasing average household income is Sarawak’s next focus

KUCHING: Sarawak will focus on policies to increase the average household income following the recent announcement by the World Bank that the state has achieved high-income status.
 
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the announcement “came earlier than expected,” as Sarawak aims to become a high-income and developed state by 2030.
 
“This achievement came seven years earlier than expected… It is a recognition that we are progressing well. It will also encourage us to work harder to increase our household income.
 
“I am confident that the state’s income will continue to increase in the next seven years until 2030 with the expansion of the revenue collection base through initiatives under the green economy,” he said.
 
He was speaking at Sarawak’s 60th Independence Anniversary celebration and parade held at Padang Merdeka today.
 
Sarawak, he said, was on track to transform its economy from a conventional resource-based to an environmentally sustainable technology-driven economy.
 
“We introduced several digital initiatives and are in the process of digitalising our economy and administration completely, leveraging technology, data, and innovation.
 
“We also managed to increase the state’s revenue to RM11.9 billion last year, especially with the implementation of the Sarawak Sales Tax (SST) imposed on petroleum products,” he said.
 
Sarawak, he said, was able to double its revenue compared to the past four years, which was usually around RM4 billion to RM5 billion, due to its revenue reengineering strategy.
 
In the meantime, Sarawak, under the administration of Gabungan Parti Sarawak (GPS), led by Abang Johari, also established its own oil and gas company, Petroleum Sarawak Berhad (PETROS), in 2017, with the goal of developing oil and gas resources with Petroliam Nasional Bhd (PETRONAS) through equity holdings for offshore exploration in Sarawak.
 
As for onshore exploration and production, PETROS has 100 per cent rights as accorded by the Oil Mining Ordinance 1958 (OMO 1958).
 
“Currently, PETROS is the third largest oil and gas company in Malaysia, with an income of RM1.5 billion in 2022,” he said.
 
Apart from that, Sarawak also set up the Development Bank of Sarawak (DBOS) in 2017 to provide loan facilities for state government agencies to implement strategic infrastructure projects to intensify development, especially in rural areas.
 
Abang Johari said the injection of these funds, particularly through the Regional Corridor Development Authority (RECODA), for local development projects throughout Sarawak was able to accelerate the provision of infrastructure that was crucial for economic development.
 
For example, allocations totaling RM4.5 billion have greatly improved roads, bridges, and school facilities in Kapit, Limbang/Lawas, and Sri Aman.