Sarawak approves RM10.646 bln budget for 2022

BY TANIA LAM, SARAH HAFIZAH CHANDRA & NATASHA JEE

Chief Minister Datuk Patinggi Abang Johari Tun Openg has announced the 2022 State Budget with an allocation of RM10.646 billion of which RM4.046 billion will be for operating expenditure, and RM6.6 billion will be appropriated to the Development Fund Account to finance the implementation of various development programmes and projects.

He made the announcement at a press conference after attending the Special Meeting on the State Budget for 2022 with state lawmakers at Borneo Convention Centre Kuching (BCCK) on Tuesday (Oct 12).

Themed ‘United in Building a Resilient, Inclusive and Progressive Society’, the 2022 State Budget will anchor on six interlinked and mutually reinforcing pillars and is framed across eight strategic thrusts aimed at accelerating economic growth, stimulating private investments, generating jobs through public investments, and building a more competitive and income-generating economy.

We produce below the full text of the 2022 State Budget.

I would like to express the highest gratitude to the Almighty Allah SWT because with His permission, I have the opportunity to present the 2022 Sarawak State Budget Statement in this special meeting even though our state is still in the emergency period.

I would like to inform that in accordance with the powers coffered to the Chief Minister of Sarawak or the State Financial Authority under Section 11 of the Emergency Ordinance (Essential Powers) (Sarawak) 2021, I have approved the 2022 Sarawak State Budget with the agreement of the State Government Meeting Council on Oct 11, 2021.

However, to ensure good governance, transparency and accountability, I have decided to deliver the 2022 Sarawak State Budget Statement at a special meeting this (yesterday) morning for the information of all honourable members.

The 2022 State Budget has been formulated against the backdrop of both global and domestic economies performance and its forecasted growth in 2022, as follows:

• The global economy is projected to grow at 6.0 percent in 2021, attributable largely to the strength in major economies like the United States and China. For 2022, the growth is expected at 4.9 percent due to uneven rebound across countries;
• The Malaysia economy is expected to grow between three percent and four percent this year given resurgence of Covid-19 cases which has forced the government to reinforce nationwide containment measures. For 2022, the growth is expected to bounce back sharply with a 6.9 percent growth as the pandemic eases; and
• The Sarawak economy is projected to grow between three percent and four percent in 2021, supported by external demand and improvement in domestic economic activities. For 2022, the growth is projected to improve to between five percent and six percent with the reopening of global economies and domestic businesses under the Phase 3 National Recovery Plan.

The state government’s continuous efforts in ensuring Sarawakians to be fully vaccinated and creating a safer environment for all segments of the populations, have stepped up the progress of recovery. As of Sept 15, this year, 83.9 percent of the adult population in Sarawak had been fully vaccinated.

Sarawak has also started with the mass Covid-19 vaccination drive targeting teens below 18 years old on Sept 9 this year. With the fast rollout of vaccination rates, it is noticeable that there are less severe illnesses reported in Sarawak despite the increase in the number of Covid-19 positive cases.

State Financial Performance, 2021

Revenue, 2021

As of third quarter this year, the state has collected a revenue of RM5.833 billion, mainly from the following major sources:

• State Sales Tax of RM2.395 billion;
• Cash compensation in lieu of oil and gas rights of RM1.287 billion;
• Dividend of RM720 million;
• Interest and return from investment of RM325 million;
• Federal grants and reimbursement of RM235 million;
• Forestry receipts of RM223 million;
• Land premium of RM212 million;
• Cash compensation in lieu of import and excise duties on petroleum products of RM120 million;
• Raw water royalty of RM145 million; and
• Other sources such as mining royalties, water sales and land rents of RM171 million.

The State Sales Tax on crude oil and liquefied natural gas since its imposition on Jan 1 in 2019 has, to date, contributed a total revenue of RM6.775 billion. This source of revenue has become the major contributor to the overall state revenue.

Expenditures, 2021

Ordinary Expenditure

The 2021 Ordinary Expenditure has been revised upwards from RM9.832 billion to RM11.644 billion, an increase of RM1.812 billion or 18 percent mainly to cater for the Bantuan Khas Sarawakku Sayang initiatives which are critical in mitigating the impacts brought about by the Covid-19 pandemic on the people’s lives and livelihoods. Up to Sept 30, 2021, an amount of RM7.314 billion of Ordinary Expenditure or 63 percent had been expended.

Development Expenditure

The state has incurred development expenditure of RM2.565 billion for 2021 as of September this year. The lower-than-expected expenditure was mainly due to the slow progress in the project implementation, as a result of the pandemic. However, with the reopening of the economy, expenditure is expected to increase as development momentum continues to pick up towards the end of the year.

State Budget, 2022

I would like to take this opportunity to highlight the salient features of the approved 2022 State Budget, with the theme ‘United in Building a Resilient, Inclusive and Progressive Society’ which shall anchor on six interlinked and mutually reinforcing pillars as follows:

• Health First, focusing on saving lives through immediate health response and needs in combating Covid-19 pandemic;
• Protecting our people through inclusive and enhanced provision of essential services, assistances and social protection schemes;
• Economic recovery and resilience through the creation of jobs and other income generating opportunities as well as supporting micro, small and medium scale businesses;
• Social cohesion and community development that addresses socio-economic inequities, rural-urban and regional imbalance;
• Digital economy transformation that focuses on providing universal, accessible, and affordable internet connectivity and digital-oriented services; and
• Sectoral growth and optimisation of resources in tourism, agriculture, forestry, mining, manufacturing, services, education, and science and technology.

Therefore, the 2022 State Budget is framed across eight Strategic Thrusts aimed at accelerating economic growth, stimulating private investments, generating jobs through public investments, and building a more competitive and income-generating economy.

The eight Strategic Thrusts are as follows:

• Protecting Lives and Livelihoods
• Steering Economic Recovery
• Facilitating and Sustaining Business Recovery
• Transforming Agriculture and Rural Economies
• Developing Human Capital
• Accelerating Digital Adoption & Data Utilisation
• Balancing Economic Growth with Environmental Sustainability
• Enhancing Government Capacity and Service Delivery

Revenue Estimates, 2022

The state revenue for the year 2022 is projected at RM10.036 billion, with details as follows:

I. Tax Revenue totalling RM4.907 billion or 49 percent, comprises the following:

a) RM3.876 billion from State Sales Tax of which:
• RM3.162 billion from crude oil, liquefied natural gas and other petroleum products;
• RM600 million from crude palm oil and crude palm kernel oil;
• RM60 million from lottery;
• RM49 million from aluminium products; and
• RM5 million from tyre.
b) RM600 million from raw water royalty;
c) RM320 million from forestry; and
d) RM111 million from mining royalties, land rents and others.

II. Non-Tax Revenue estimated at RM4.844 billion or 48 percent, mainly derived from the following major sources:

a) RM2.108 billion from five percent cash compensation in lieu of oil and gas rights or royalty on oil and gas;
b) RM1.466 billion from dividend receipts;
c) RM721 million from interest income;
d) RM320 million from land premium;
e) RM120 million from cash compensation in lieu of import and excise duties on petroleum products; and
f) RM109 million from others, including licences, service fees, permits and rentals.

III. Non-Revenue Receipt of RM26 million, mainly from forest liquidated damages, disposal of assets, and forest compounds; and
IV. Federal Grants and Reimbursements of RM259 million. Ordinary Expenditure Estimates, 2022

Under Ordinary Expenditure, a sum of RM10.646 billion will be allocated for 2022. Out of this, RM4.046 billion is for operating expenditure while RM6.6 billion is to be appropriated to Development Fund Account to finance the implementation of various development programmes and projects.

The Operating Expenditure of RM4.046 billion in 2022 will comprise the following:

I. RM905 million for personnel emoluments;
II. RM1.333 billion for supplies and services;
III. RM1.561 billion for grants and fixed payments; which includes operating grants to statutory bodies and local authorities, servicing of public debts and payments of gratuities, pensions, scholarships, welfare and financial assistances;
IV. RM89 million for the procurement of assets; and
V. RM158 million for other operating expenses.

Development Expenditure Estimates, 2022

A sum of RM7.509 billion will be provided for Development Expenditure Estimates under 2022 Budget. This estimate is distributed throughout the following key sectors:

I. RM5.371 billion will be allocated under Economic Sector to carry out the following programmes and projects;

a) RM3.796 billion for commerce and industry such as State investment, State industrialisation programmes, and tourism promotion;
b) RM1.18 billion for transport which includes roads, bridges, riverine infrastructure and ports, navigational safety and various infrastructure projects under Projek Rakyat;
c) RM134 million for agriculture development such as crop and industry development, agriculture infrastructure, veterinary services and agriculture research;
d) RM91 million for provision of energy and public utilities, especially in the rural areas;
e) RM50 million for environment such as forest conservation, reforestation and restoration, urban drainage and flood mitigation projects;
f) RM53 million for feasibility studies on state development planning and policy formulation; and
g) RM67 million for research and development.

II. RM1.905 billion will be allocated under social sector to implement the following people-centric programmes and projects:

a) RM1.155 billion for village and community development mainly for Rural Transformation Projects, Minor Rural Projects, Kampung Extension Schemes, Urban Renewal Projects and Rural Growth Centres;
b) RM220 million for housing development mainly for construction of affordable houses;
c) RM344 million for local authorities and social welfare services which also includes urban sewerage and waste management as well as landfill development;
d) RM162 million for education and human capital development through upskilling and reskilling programmes; and
e) RM24 million for culture, youth and sport including upgrading of various sports facilities throughout the State.

III. RM233 million will be allocated under the general administration sector such as construction of government offices and quarters as well as ICT and digital projects.

Budget Deficit, 2022

With the estimated revenue of RM10.036 billion and expected Ordinary Expenditure of RM10.646 billion, the 2022 State Budget is expected to incur a deficit of RM610 million. It is critical at this juncture, given the devastating impacts of Covid-19 pandemic to the state economy and the livelihood of the rakyat, the state government ought to embark into fiscal expansionary policy to boost productivity and revive the economy.

I am convinced that with this direction, we will ride through this difficult and challenging period to recover stronger and build back better. The consequences for not making any intervention measures in terms of significant public investments and spending may result in severe and disastrous repercussions on the people’s wellbeing and economic prosperity in the future.

Strategic Thrusts and Initiatives, 2022

Strategic Thrust 1: Protecting Lives and Livelihoods

The 2022 Budget will focus primarily on continuing to protect and restore the lives and livelihoods of the people and businesses. As a responsible and caring government, we will continue to implement various incentives and welfare assistances particularly to benefit the vulnerable and disadvantaged segments of our society with a total allocation of RM372 million next year.

These initiatives, among others, are Sarawak Newborn Incentive, Post-Natal Assistance, Early Childhood and Care Institutions, Kenyalang Gold Card, Haemodialysis Assistance, i-Suri Incentives, Family Empowerment Programme (e-Life), Safe Haven for Homeless and Displaced Communities and various welfare aids under the Welfare Department.

On top of these, the state government will continue implementing the following on-going initiatives:

• Free water programme with an allocation of RM20.2 million;
• Connection charges government financial assistance with an allocation of RM10 million;
• RM1 flat rate bus fare programme with an allocation of RM10 million; and
• Fire relief assistance of RM19 million to fire victims as financial assistance to repair and rebuild burnt houses which are not covered under fire insurance.

Expanding Coverage of Utilities

The state will continue to expand the coverage of treated water and electricity supply throughout the state with an allocation of RM91 million next year. This shall ensure provision of reliable, sustainable and resilient water and electricity supply to the rakyat. Among the projects are Rehabilitation of Loji 1 at Batu Kitang, Construction of Water Reservoir Tank at Bukit Pancur and Electricity Supply Project to schools which have yet to be connected to the grid.

In addition to this, the Sarawak Water Supply Grid Programme for stressed areas and the Rural Electrification Scheme will continue to be implemented next year under alternative funding with a provision of RM1.5 billion to be made available.

Affordable Housing

My administration will also continue to intensify efforts to provide affordable housing to the people, address end-financing problems among the low-income group, and alleviate cost pressure in the housing market. Thus, in 2022, the following projects and initiatives will continue to be implemented:

• Construction of affordable housing, extension of village resettlement scheme, and urban renewal projects throughout the State with an allocation of RM189 million;
• Program Pembaikan Rumah Miskin Sarawak with an allocation of RM80 million, and Program Baikpulih Rumah Panjang of which RM50 million will be made available to rebuild and repair dilapidated longhouses;
• Sarawak Rental Assistance Scheme that provides rental assistance of RM200 per month for up to 36 months or three years of which a sum of RM48 million will be made available for this purpose; and
• Provision of loan assistance to low-income groups (B40) and middle-income groups (M40) home buyers through Mutiara Mortgage and Credit Sdn Bhd (Mutiara) of which RM50 million has been provided.

Housing Deposit Assistance Scheme

I wish to announce that a new assistance scheme will be introduced next year, that is the Housing Deposit Assistance Scheme. This scheme shall provide cash assistance of up to RM10,000 to B40 and M40 home buyers for payment of housing deposit and will be managed by Mutiara. This assistance is applicable to affordable housing projects sanctioned by the state government. A sum of RM10 million will be allocated in 2022 Budget that will benefit about 1,200 home buyers.

Bantuan Khas Sarawakku Sayang (BKSS) 1.0 to 7.0

It has always been the top priority of the state government from the very beginning to protect people’s health and revive the economy amidst the ravaging impact of the Covid-19 pandemic. Therefore, in response to this crisis, the state government has stepped forward with unprecedented direct and indirect financial supports through BKSS 1.0 to BKSS 7.0 in 2020 and 2021 worth RM5.3 billion. This involves more than 30 measures that have been implemented.

BKSS 8.0

For 2022, my administration has decided to continue with some of these key initiatives under BKSS 8.0 worth RM285.47 million covering the first six months of next year as well as one-off financial assistance, as follows:

• Electricity bill discount of RM166.8 million, benefitting 647,000 beneficiaries;
• Water bill discount of RM24 million, benefitting 646,131 beneficiaries;
• 50 percent Housing Development Corporation (HDC) rental discount of RM2.6 million, benefitting 3,200 tenants;
• Waiver of rental to small and medium enterprises (SMEs) in retail sector operating on premises owned by state government-linked companies (GLCs) of RM2 million;
• 50 percent discount for rental of market and stalls belonging to the local authorities amounting to RM1.7 million, benefitting 10,165 tenants;
• One-off incentive of RM500 to 1,725 owners and operators of penambang (boats) registered with Sarawak Rivers Board (SRB), licensed van operators, taxi drivers, school bus and van operators in Sarawak amounting to RM0.87 million; and
• One-off special grant of RM1,000 to 87,500 hawkers and petty traders through Sarawak Pay of RM87.5 million.

Strategic Thrust 2: Steering Economic Recovery

The state has and will continue to undertake various measures in addressing the economic and social challenges brought about by the pandemic to steer us towards economic recovery. These measures are as follows:

• Development and rural-focused
 To address urban and rural imbalance, a total sum of RM4.803 billion or 64 percent of the total development expenditure will be allocated to implement various rural-based infrastructure projects and people-centric programmes. This will help to create more jobs and business opportunities for our people.

• Intensify infrastructure development
 My administration will allocate a sum of RM1.18 billion in 2022 Budget to intensify infrastructure developments such as roads and bridges, ports, and riverine infrastructure. In addition, construction of major infrastructure projects under alternative funding initiatives such as road networks, airports and urban transportation will continue to be implemented next year. The completion of these projects will provide greater accessibility and connectivity, and will open up more rural areas for agriculture and other socio-economic development.

• Intensify industrialisation programme
 The state is committed to continuously upgrade its industrial parks’ facilities and infrastructure. In this respect, the 2022 Budget will allocate a sum of RM124 million for state industrialisation programmes such as Sibu Industrial Estate, Demak Laut Industrial Park, and Sematan Industrial Estates. Greater emphasis will be placed to secure more quality investments (Domestic Direct Investment and Foreign Direct Investment) and to position Sarawak as a top-tier destination for investment, economic growth, and job creation. Hence, InvestSarawak will be incorporated in 2022 as a vehicle to take up this initiative.

• Boost tourism sector
 The tourism sector has been hard hit by the pandemic. In our efforts to revive the tourism sector, a sum of RM131 million will be provided in 2022 Budget for tourism development, promotion and cultural heritage.

Heritage, Arts and Culture Facilitation Fund

I wish to announce the setting up of Heritage, Arts and Culture Facilitation Fund in 2022, whereby a sum of RM10 million will be provided. This special assistance will assist heritage, arts and culture organisations and associations to organise activities and enhance the capacity of the organisations.

Strategic Thrust 3: Facilitating and Sustaining Business Recovery

The state government will continue to assist SMEs to recover and rebuild their businesses while facilitating new start-ups. In 2022, a total sum of RM25.1 million will be allocated to facilitate the recovery of businesses, SMEs, and micro-entrepreneurs through the implementation of interest subsidy schemes under Special Relief Facility, Targeted Relief and Recovery Facility, and Penjana Tourism Financing.

The 2022 Budget will also provide a sum of RM24.5 million for entrepreneurship programmes, Sarawak Micro Credit Scheme, Small and Medium Industries Loan Scheme, Go Digital Programme and Digital Marketing Training.

Special Assistance for Business Empowerment and Recovery

My Administration will introduce a special assistance next year, namely the Bumiputera Business Empowerment Fund and Business Recovery Assistance Fund.

The Bumiputera Business Empowerment Fund will be allocated a sum of RM10 million to help bumiputera business associations to tide over the pandemic through business enhancement programmes.

Whereas for Business Recovery Assistance Fund, a one-off special grant of RM20 million will be set aside to assist Sarawak Business Federation and its 15 affiliates to organise capacity building and enterprises development programmes for their members.

Strategic Thrust 4: Transforming Agriculture and Rural Economies

The state government is committed to transform agriculture into a technology-driven and sustainable sector that will ensure food security and safety, create wealth for the agro-based community, and establish Sarawak as a net food exporter by 2030.

Agriculture Transformation Programmes

The 2022 State Budget will allocate a sum of RM134 million for the implementation of various agricultural projects towards ensuring sufficient food supplies, raising and sustaining farmers’ income, strengthening agriculture ecosystem, and promoting smart agriculture. The projects among others are agroparks in Bebuling, Spaoh; Sg Baji and Parit Bugis in Sarikei and Sadong Jaya in Samarahan as well as the Livestock Industry Development Programme.

As for our efforts to promote smart agriculture, various projects are expected to be implemented under alternative funding, among others, the precision farming parks in Rampangi and Tarat, and Agro-Technology Park (Sartech) at Semenggoh, Kuching. Some of these initiatives will also be taken up through collaboration with the private sector.

Rural Growth Centres

As part of our efforts to uplift the livelihood of our rural populace, the state government will continue to implement various Rural Growth Centre projects at Betong, Mukah, Miri and Kuching as well as Rural ICT Development programmes with an allocation of RM19.7 million next year.

Assistance to Farmers and Fishermen

The state government also recognises and empathises with the difficulties faced by our farmers and fishermen during the Covid-19 pandemic. Thus, to ease their burden and sustain their livelihood, an allocation of RM60 million will be made available as a special financial assistance to oil palm and pepper smallholders.

Another RM15 million will be allocated to continue with the implementation of Monsoon Season Aid for Fishermen. These assistances will benefit 80,000 smallholders and fishermen.

Strategic Thrust 5: Developing Human Capital

My administration has accorded utmost priority to human capital development in order to build a modern and knowledgeable society, where an allocation of RM20 million will be provided in 2022 Budget. We will also continue with the development of Sarawak international schools next year under alternative funding initiatives.

Early Childhood Education

Recognising the importance of early childhood education, the state government will allocate a sum of RM37 million for early childhood and care institutions, One-Stop Early Intervention Centre Sarawak, and the operation of 94 kindergartens and childcare centres under Sedidik Sdn Bhd.

Training and Skills

Emphasis will also be given to ensure people have the right to second chance education and lifelong learning through upskilling and reskilling which will improve accessibility and foster participation in the labour force. Towards this end, a sum of RM42.2 million will be provided in 2022 Budget to undertake the following programmes:

• RM22.4 million for Graduates Enhancement Training Programme which will benefit 1,000 graduates;
• RM5.8 million for the teaching of Science and Mathematics in English, advanced automotive training centre, and cultivating ICT know-how among teachers and students; and
• RM14 million for Centre of Technical Excellence Sarawak (Centexs) Digital Academy.

Digital Skills and Talent Development

The state government will continue to develop digitally skilled workforce talent who are digital-savvy and industry-ready. As such, digital upskilling and reskilling programmes will continue to be conducted, focusing on technical digital skills such as cybersecurity, Internet of Things, and software development.

The pandemic has made it inevitable to integrate remote or virtual learning to ensure continuous delivery of high-quality education and training. The implementation of blended learning enabled by technology such as e-Learning Module for Digital Economy will ensure social inclusivity and reduce the knowledge and technological gap between rural and urban communities.

Strategic Thrust 6: Accelerating Digital Adoption and Data Utilisation

The Covid-19 pandemic has hastened the state economy’s digital transformation. We need to adapt to new technologies and optimise e-commerce opportunities to keep pace with today’s digital world. In 2022 Budget, a sum of RM25 million will be allocated for Sarawak Pay, an initiative by the state government to provide a one-stop mobile app payment channel for the public.

The state government will continue to provide integrated one-stop and seamless government services through multiple channels which provide transparent and efficient integrated end-to-end or full online state government services to the rakyat. To support this initiative, a sum of RM50 million is set aside for ICT development at various government agencies such as state e-procurement, eBooking, eScholarship, e-Utilities System, Integrated Asset Management System, Contractor and Consultant Management System, and so forth.

Sarawak Rural Broadband Network (MySRBN)

MySRBN is a Sarawak digital transformation initiative to digitalise Sarawak’s economy and to connect the rural communities with the world by providing high-speed broadband service via Fixed Wireless Broadband. This initiative is driven by Sarawak Digital Economic Corporation (SDEC).

To date, MySRBN has been successfully implemented at 150 suburban and rural areas in Sarawak within six months in Phase 1 and additional 44 sites in Phase 2.

MySRBN will also benefit up to 45,000 public spaces and home connects to have unlimited access up to 30Mbps internet speed with an affordable broadband package. The deployment of Fixed Wireless Broadband opens a world of opportunities for people living in suburban and rural areas.

MySRBN will be beneficial to the people of Sarawak by closing the digital divide in terms of disparities in information and communication access. In Sarawak, there is a clear divide between rural and urban areas. It is either a lack of or limited access to the internet. Given that such constraints can hinder the realisation of the digital economy, Fixed Wireless Broadband is one of the measures to bridge the internet access gap due to its fast deployment in resolving connectivity issues in a short time by capitalising on the existing infrastructure.

The Sarawak government is also committed to build Sarawak Multimedia Authority Rural Telecommunication (SMART) tower apart from the existing 3,100 towers and structures across the State. This will enable the telecommunication companies to provide mobile broadband services through SMART and MySRBN initiatives.

Strategic Thrust 7: Balancing Economic Growth with Environmental Sustainability

The state government will continue its effort to ensure that sustainable forest management standards in Sarawak are in line with international standards and at the same time strengthening Sarawak’s reputation in the global market. A sum of RM31 million will be provided for the implementation of forestry projects such as Forest Landscape Restoration Programme; Establishment of Forest One-Stop Compliance Centre and Permanent Forest Estate; and Development and Upgrading of Facilities at Totally Protected Areas (TPAs).

An approved sum of RM1.13 million will be utilised for carrying out promotional activities and strategies which aim to secure our Niah National Park as the globally recognised United Nations Educational, Scientific and Cultural Organisation (Unesco) World Heritage Site.

Efforts are also being initiated to inscribe Bako National Park and Lambir Hills National Park as Asean Heritage Parks and at the same time Santubong National Park and Bako National Park as International Union for Conservation of Nature (IUCN) Green List of Protected and Conserved Areas.

Strategic Thrust 8: Enhancing Government Capacity and Service Delivery

My administration will continue to strengthen the state service delivery. A sum of RM12 million will be set aside for capacity building of the state civil service as an enabler for change and transformation. Thus, we will continue to embark on the following initiatives:

• Making government services more digital-friendly and accessible;
• Reducing red tape and simplifying processes and procedures; and
• Strengthening the current procurement regime.

So, what we can learn from the Covid-19 in the context of the implementation of the 2022 State Budget is that if we are all united, regardless of race, religion and political affiliation, I am confident that we will be able to address these difficult challenges successfully. It requires hard work, high commitment, and the cooperation of all parties, be it the government, the private sector and all walks of life.

Therefore, I would like to take this opportunity to express my deepest appreciation and thanks to all parties involved, especially frontliners, medical personnel, security personnel, state and federal civil servants, the media, and all parties who have worked hard in carry out their respective trusts and duties in combating the Covid-19 pandemic.

In appreciation of the service rendered by civil servants in managing the government’s machinery, especially in dealing with the bitter situation of this pandemic, I am very pleased to announce the provision of one and a half month special financial assistance for the state civil servants. Not to be forgotten, federal civil servants in Sarawak will also receive special financial assistance amounting to RM500 each as an appreciation from the state government for their contribution in prospering the state of Sarawak.

Conclusion

The impact of Covid-19 on our society and economy has been unprecedented, severe, and uneven, and the state government’s fiscal interventions via 2022 State Budget would limit any permanent adverse effects of the pandemic on the rakyat and the economy. The 2022 State Budget will enable us to create conducive conditions for economic recovery and growth, which will open up new business opportunities, create jobs, and bring about multiplier effects to the domestic economy.

I sincerely believe hope is on the horizon as we move towards an endemic phase. Meanwhile, we will continue to uphold our unflinching focus and deep commitment on protecting people’s health, wellbeing, and our economy. This approved 2022 Budget is a testimony to this pledge by my administration.

Thank you.