It’s an exciting 2022 for both Sarawak’s and Malaysia’s economies as figures have shown a tremendous improvement since the opening of the international borders in April of this year.
For instance, this year Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg revealed that Sarawak collected over RM11 billion, which is the biggest revenue in the state’s history. This shows that the various sectors of the economy have been doing well.
For example, in the tourism sector, the state has recorded RM3.87 billion in revenue compared to RM537.17 million in 2021.
Chief executive officer of Sarawak Tourism Board (STB) Sharzede Salleh Askor recently said that it is a strong indication that Sarawak tourism is recovering healthily it prepares for 2023.
That being said, a lecturer from University Malaysia Sarawak (UNIMAS) Dr Evan Lau, felt that even with the uncertainty that is going on in the world at the moment, things are on the right track for the country and the state.
“Ever since the border opened up, the economy started to grow once again, plus more tourists are coming here to spend their money, so I am very happy to see that’s happening,” he said.
Early on, the growth of Malaysia’s Gross Domestic Product (GDP) for this year is likely to exceed the earlier projection of between 6.5 per cent and seven per cent, according to Prime Minister Datuk Seri Anwar Ibrahim.
He, who is also the federal Finance Minister said that such sentiments remained positive at the end of this year with encouraging performance following the reopening of the economy amid the transition to the COVID-19 endemic phase.
The strong GDP growth also was contributed by robust domestic and external demand as well as an improved labour market.
In stating this also, Evan felt that the growth in the GDP for 2022 is much higher than what was expected.
“But of course on the surface level only, on the deeper level, I hope that the current government needs to look into some issues, mainly the subsidies.
“How they are going to deal with it, that would be something that we will continue to monitor,” said Evan.
On the tourism sector, he felt that it is doing much better than before, mainly due to the people deciding to travel more within the country rather than travelling outside the country.
“That is a good sign, plus the confidence among the people is there to travel again, spending their money towards the domestic tourism and it will boost the economy further,” it added.
On other sectors, he pointed out that not only the figure GDP shows promising growth, but he also added that this year, the biggest contributor according to several reports is the service sector.
Department of Statistics Malaysia (DOS) reported that the revenues for service sectors increased up to 32.3 per cent in the third quarter of this year compared to the second quarter which is 25.2 per cent.
“Let’s not forget the manufacturing sector, as it has also shown outstanding growth for this year alone despite the uncertainty,” said Evan when contacted by New Sarawak Tribune recently.
As of October of this year, Malaysia’s manufacturing sales have risen to 12.9 per cent.
The continuous double-digit growth in sales value for October 2022 was largely driven by the petroleum, chemical, rubber, and plastics products sub-sector (238 per cent), electrical and electronics products sub-sectors (16.6 per cent) and food, beverages and tobacco products sub-sectors (4.6 per cent).
On another note, Evan then stated that currency although for a little while, the currency was affected not only due to the political crisis but also due to inflation, China’s Zero Covid-19 policy, alongside the Russia-Ukraine war, it was improved towards the later year.
“Sure, the currency is still weak, but now it is improved, even after GE15.
“That being said, once again I am hoping that the new government will be making some sort of positive impact towards our economy,” he said.
In the meantime, UNIMAS honorary professor Datuk Dr Madeline Berma felt that while the currency is still being affected, it is now stabilising and felt that Malaysia Ringgit experienced even worst moments previously.
“It is because our economy at first in the bad shape this past year, so now it is stable, which is good.
“I believe it is because of our political stability so we finally see the light at the end of the tunnel,” said Madeline.
Evan then also stated that under the leadership of the new Prime Minister, Datuk Seri Anwar Ibrahim, the expectation is outstandingly high, especially on the representation of the Budget 2023.
“I would like to see what sort of initiative he is going to represent; how they are going to assist the vulnerable groups, and the economic policies the government are going to implement for the country to move forward,” he said.
Madeline then felt that although 2023 is going to be a tough year for Anwar, it should also not be a difficult thing due to the MOU signing by leaders of the political parties this month.
“I believe that Anwar is working truly hard to attract the foreign investors, and I can see they are coming in slowly to our country because of, and I repeat the political stability,” she added.
Though things are going to be much better, Madeline then also revealed that the country might need to increase the Overnight Policy Rate (OPR).
“This is because we understand that is among the few ways to curb the inflation, even if the inflation is inevitable,” Madeline added.
She also questioned how the current government is going to handle the subsidies.
“Because Anwar did reveal that the subsidies are going to cost us RM20 billion, therefore, my question is where are we going to get the money?
“Sure, we have plenty of resources in terms of the revenue, but still I would like to see how are they going to finance our subsidies during the representation of the Budget 2023,” she added.
On the prediction of where is the state and country heading economically, Evan then stated that although the GDP numbers are improving for Malaysia and Sarawak, he remained cautious, especially regarding the looming recession.
“If that happens, for sure it would affect the country, and that is why as I said before, I want to see how they are going to manage and mitigate it.
“We will go through the storm, with preparation,” said Evan.
Madeline then predicted that although things are going to be a bit difficult in 2023, the country should be able to sail through if the three aspects are under control.
“They are health, politics and economy. These are the three things we have had to deal with over these past two years.
“Now that the political situation in our country is good, and our health care system is under control, the government can now focus on rebuilding the economy, so we will be alright eventually,” she added.
Regarding his hope for the country’s economy next year, Evan said he would like the country to become as stable as possible; not only next year, but the years after.
“It is a good lesson for Malaysia to learn and what some of the things we can do for preparation, and we have to move forward and focus on what is good for the country and most importantly for Sarawak as well,” said Evan.
Madeline then stated that she is hoping for a stronger Malaysia.
“I hope that the economy grows faster, I am hoping to see some reformations and improvement happening in 2023.
“I would also like to see some structural reforms in our taxation so that our people won’t be burdened too much by it,” explained Madeline.
