Dr Sim: Sarawak’s GDP will be second highest in Malaysia this year due to O&G price hike

Dr Sim (second right) and Tiang (first right) visiting booths set up during the MPHLG Innovative and Creative Circle (ICC) Convention.

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By Ling Hui

KUCHING, Aug 10: Sarawak’s gross domestic product (GDP) will be ranked the second highest in Malaysia this year due to the increase of oil and gas (O&G) prices, says Deputy Premier Dato Sri Dr Sim Kui Hian.

He said Sarawak would be able to gain large profits from the price hike as half of Malaysia’s O&G revenue, which is 40 per cent of the total revenue, comes from Sarawak’s resources.

“Remember in 2020, our oil and gas prices were very low. Our GDP dropped to the third highest in Malaysia. Now, our oil and gas prices are very high, because of the Russia-Ukraine war.

“I’m very sure this year our GDP will be the second highest in Malaysia. I can guarantee you that,” he said during his speech at the MPHLG Innovative and Creative Circle (ICC) Convention closing ceremony at a local hotel here today.

Touching on the future of the O&G industry, Dr Sim said most of the cars on the road would be replaced with electric vehicles (EVs) by 2030.

By then, he said, the demand for O&G would decrease accordingly which will result in a revenue drop.

“We may not only face revenue drop, but also an increase in population. Income drops, but there are more mouths to feed.

“I’m saying this because we must understand the landscape, challenges, and opportunities. I’m grateful that our YAB Premier has grabbed the opportunities to develop new economies which are hydrogen and hydroelectricity,” he said.

Quoting the words of the Prime Minister of Singapore Lee Hsien Loong, Dr Sim said Sarawak is lucky to have both the “old” O&G economy, and the new hydrogen and hydroelectricity economies.

Also present at the function were Deputy Minister for Local Government Datu Dr Pengguang Manggil and Deputy Minister for Public Health and Housing Michael Tiang. — DayakDaily