By Karen Bong
KUCHING, Dec 16: Malaysia, including Sarawak, is implementing strategic policy shifts aimed at transforming the country into a high-complexity economy capable of generating high employment and high-wage jobs, a move designed to accelerate its journey toward developed nation status.
Minister of Finance II Senator Datuk Seri Amir Hamzah Ibrahim said that the government’s focus is on “raising the ceiling” of Malaysia’s economy while ensuring that nobody is left behind.
“The country is at a new stage of its development. We are transforming to become a powerhouse in Asia and a critical link in the global supply chain,” he shared during the 2026 Sarawak Budget Conference forum session titled Exploring Sarawak’s Future: The Fourth Madani Budget and 13MP as Catalyst for Growth at the Borneo Convention Centre Kuching (BCCK) today.
He highlighted the government’s three-pronged strategy since taking office in late 2022: raising the economic ceiling, lifting the economic floor to reduce disparity, and improving government efficiency with fiscal discipline.
Amir noted that Malaysia achieved a record RM384.5 billion in approved investments last year, with 2025 on track to repeat the achievement. He said investments were increasingly focused on high-tech sectors, particularly semiconductors, with companies like Intel, Infineon, and Motorola expanding their operations in Malaysia.
On the domestic front, Amir highlighted policy measures to lift wages, citing increases in minimum wage from RM1,200 to RM1,700 and civil servant salary adjustments, the first in 12 years. He also pointed to government-linked companies raising their minimum wages to RM3,000, signaling a shift toward high-wage employment.
“Here in Sarawak, we are seeing transformation with the hydrogen sector, green technology development, and gas-induced industrial hubs. These are not just high-employment jobs; they are high-wage jobs that drive balanced economic growth,” he pointed out, adding that infrastructure development is crucial to connecting towns, cities, and rural areas to stimulate regional prosperity.
Deputy Prime Minister Datuk Amar Fadillah Yusof added that the Madani Budget 2026 focuses on long-term resilience and competitiveness, shifting from recovery mode after the Covid-19 pandemic.
“From recovery, we are now focusing on competitiveness. From short-term, we have to look into the long-term plan to ensure sustainable economic growth,” he said.
Fadillah emphasised that raising the economic floor and ensuring financial security for citizens, is inseparable from raising the ceiling, which allows for higher-value economic activity.
He highlighted expected 2026 targets of 4.5 per cent growth, 1.1 per cent inflation, and a fiscal deficit reduced to 3.5 per cent of GDP.
He noted key policy measures, including disciplined budgeting, targeted subsidies, increased tax compliance, anti-corruption measures, and the introduction of the Government Procurement Act to ensure responsible spending.
“Looking forward, growth will be driven by semiconductors, hydrogen and renewable energy, AI, and the digital economy.
“Sarawak has been placed as a central focus for hydrogen development under the Madani Budget 2026, with development allocations increased from RM16 million to RM600 million for Sarawak and Sabah,” he said.
Both ministers underscored that Malaysia’s transformation requires a whole-of-nation approach, integrating federal and State strategies, infrastructure development, and human capital initiatives to position the country and Sarawak in particular at the forefront of a high-income, high-complexity economy. — DayakDaily
