By Lian Cheng
“Sarawak’s dream must be supported by well-trained and knowledgeable human capital, as well as a world-class education system, because natural resources’ wealth alone will not ensure our full success.” Abang Johari (April 21, 2023)
IN 2017, during the early days of his tenure as Chief Minister of Sarawak, Datuk Patinggi Tan Sri Abang Johari Tun Openg made one of his first bold policy moves: transforming revenue from the State’s abundant natural resources into long-term investments for Sarawak’s youth, whom he identified as the cornerstone of the State’s future. In a move that shocked many, he declared a staggering 6,000 per cent increase in the chargeable premium for hill timber logs, from the small rate of RM0.80 to RM50 per cubic metre.
The additional revenue collected from this premium hike was earmarked for the Sarawak Education Fund, administered by Yayasan Sarawak. The objective was clear: to finance scholarships for Sarawakian students, enabling them to pursue their studies not only at local institutions but also at top-tier international universities.
By channelling timber-derived revenue into education, Abang Johari secured more than just the financial resources needed to fund Sarawak’s education system—he also charted a new course for Sarawak’s development, one centred on a knowledge-driven future. The premium increase was formally gazetted through a Forestry Department circular dated April 12, titled “New Rate of Hill Timber Premium (Sarawak Foundation Fund)”, which stated that the Chief Minister, who also held the portfolio of Minister of Resource Planning and Environment, had approved the hike in accordance with Section 46(1) of the Forest Ordinance, 2015.
A Fight for a Brighter Future
The new premium applies to all species of logs harvested from hill forests and agri-conversion areas. Logging companies that refused to comply with the revised rates risked forfeiture of their timber concessions. With this, the deal was firmly sealed. The announcement drew strong resistance from timber companies, many of which lodged appeals through the Sarawak Timber Association. These appeals, however, were ultimately dismissed. After a series of meetings to explain the rationale behind the revised premium of the new log levy, the Forestry Department moved ahead and enforced the new updated rate. By October 30, 2017, the Sarawak government had amassed RM300 million from the newly implemented timber premium.
Abang Johari later revealed that the revenue collected had enabled Yayasan Sarawak to significantly expand its scholarship offerings. Among the immediate beneficiaries were 40 students awarded full scholarships to study medicine at Universiti Malaysia Sarawak (Unimas), with a further 39 students receiving funding to pursue specialised disciplines such as cybersecurity, molecular engineering, molecular biology, programming, and other digital-focused fields. This represented a striking improvement from previous years, when Yayasan Sarawak could only support a limited number of students for studies abroad or at local institutions.
A Brilliant Decision
By the end of the year, revenue from the revised timber premium surpassed RM500 million, enabling the State government to expand its education support further. More scholarships were offered, including for studies at internationally recognised Australian institutions such as Swinburne University and Curtin University.
Abang Johari’s bold decision to raise the timber premium was more than a fiscal adjustment. By redirecting resource-based revenue into education, he laid the groundwork for a future powered not just by commodities, but by knowledge, talent, and innovation.
The content featured here is an excerpt from the book “Rise of Sarawak: Abang Johari’s Era of Transformation”, published by Sage Salute Sdn Bhd. All information contained herein is accurate as of the first quarter of 2025.
