SARAWAK is on the right track of recovery as most of its economic indicators show an upward trend.
According to Finance and New Economy Minister Datuk Patinggi Tan Sri Abang Johari Tun Openg, the state government anticipates that the domestic economy will gradually improve and become stronger for the rest of 2022 and into 2023.
“We are also aware of the downside risk that global uncertainties such as the Russia-Ukraine war as well as the China zero-COVID-19 policy may affect our external demand.
“Slowing global trade activities are anticipated to prolong into 2023, and with anticipation that the oil price may trend downwards, Sarawak economy is projected to register a growth of between 5 percent to 6 percent in 2023.
“Nonetheless, this positive growth shows our economy is proven to be resilient to pandemic disruption, aided by the State Government emergency response initiatives, and a strong vaccination programme,” he said.
He said this when tabling the Supply (2023) Bill, 2022 at Sarawak State Legislative Assembly (DUN) sitting on Monday (Nov 21).
Proving his point, he stated that a strong external demand was registered in the first eight months of 2022.
He added that the total external trade increased by 1.5 fold from RM91.1 billion in 2021 to RM141.2 billion this year.
“Both export and import increased by double digit growth of 61.1 percent and 38.6 percent, respectively.
“Strong commodity prices continue to drive the growth in export, particularly in oil and gas, aluminium, ferro-alloys as well as crude palm oil.
“Oil price is expected to remain high with an average price hovering around USD100 per barrel for 2022,” he said, adding that the robust performance in imports was driven by growth in intermediate imports, which supports development activities in the State and expansion in manufactured exports.
Meanwhile, on the consumption side, Abang Johari disclosed that private consumption is expected to grow at 6.8 percent in 2022, intensified by recovery in the labour market and normalisation of economic activities.
He further pointed out that the rollout of Bantuan Khas Sarawakku Sayang (BKSS) and Bantuan Keluarga Malaysia have provided additional support to consumer spending.
As such, he said in the first seven months, import on food and beverages rose by 25.6 percent.
“Moreover, both public and private investments are projected to register a strong growth of 19.3 percent in 2022 mainly driven by high public investment allocated for development projects.
“Import of machinery and equipment as well as intermediate goods expanded by 52.5 percent in the first eight months of this year.
“Approved investment in the manufacturing sector also showed an increase for the first nine months amounting to RM6 billion, particularly in the electrical and electronic industry,” he said.
