SARAWAK anticipates a revenue of RM14.2 billion for 2025, the highest revenue ever projected for the state. This strong revenue outlook projects the state’s continued commitment to enhance fiscal sustainability.
In his address at the second reading of the Sarawak Budget 2025 today, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg delivered a surplus budget for 2025, outlining the main sources of this expected revenue.
He projected a tax revenue of RM6.2 billion, accounting for 44 per cent of the total revenue. The largest contributions to this sum include:
- RM5.1 bln from the state sales tax, with RM4.1 bln coming from crude oil, liquefied natural gas (LNG), and other petroleum products;
- RM820 mln from crude palm oil and palm kernel oil;
- RM75 mln from lottery revenue;
- RM60 mln from aluminium products;
- RM29 mln from timber products; and
- RM6 mln from coal.
The state expects RM620 million from raw water royalties, timber premiums, and tariffs, as well as RM422 million from mining royalties, land rents, and other sources.
Non-tax revenue is projected at RM7 billion, making up 49 per cent of total revenue. The key components of non-tax revenue include:
- RM2.7 bln from cash compensation in lieu of oil and gas rights;
- RM2.9 bln from dividend income; RM835 mln from interest income; RM400 mln from land premiums;
- RM120 mln from compensation for import and excise duties on petroleum products; RM26 bln from various other sources, including licences, service fees, permits, and rentals.
The state also expects non-revenue receipts to reach RM32 million, primarily from unclaimed deposits, overpayment recoveries, and the disposal of vehicles.
In terms of federal support, Sarawak is set to receive RM937 million in grants and reimbursements for 2025.
This increase in federal contributions is partly due to the federal government’s decision to raise the interim special grant rate for Sarawak from RM300 million to RM600 million, effective next year.
With these projections, the Sarawak Budget 2025 is set to ensure the continued growth and financial stability of the state.
