SARAWAK is not shielded from the impact of global inflation as higher costs of production and materials pushed the state’s inflation up by 3.1 per cent in 2022.
Deputy Premier cum Second Minister of Finance and New Economy Datuk Amar Douglas Uggah Embas said the inflationary pressure is much felt in the food and non-alcoholic beverages segment for which inflation increased by 5.5 per cent in 2022.
Although the outlook remains highly uncertain, he said overall inflation for Sarawak is projected to average between 2.5 per cent and 3.5 per cent in 2023 as global cost factors moderate and commodity prices decrease.
“For the first quarter of 2023, Sarawak registered an average inflation rate of 4.0 per cent whilst inflation for food and non-alcoholic beverages rose to 8.2 per cent compared with the corresponding period in 2022. Nonetheless, considered on a month-on-month basis, the overall inflation rate is declining,” he said.
He said this in his ministerial winding-up speech during the State Legislative Assembly (DUN) sitting today.
On another matter, Uggah said the normalisation of the economy has contributed to positive improvement in the labour market in Sarawak.
He said preliminary statistics showed that Sarawak’s labour market has returned to full employment.
“Unemployment fell from 4.5 per cent in 2021 to 3.1 per cent in 2022. Supported by the ongoing recovery particularly in the services sector and tourism related services, it is projected that the labour market will remain at full employment in 2023,” he said.
