By Karen Bong
KUCHING, Sept 22: Projects that received government funding five years ago should not expect automatic financial support in the future, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said today, signalling a tougher and more disciplined approach to capital allocation across Sarawak’s State-owned enterprises (SOEs).
He said capital allocation must be guided by future opportunities and measurable outcomes rather than historical precedents.
“Capital should follow opportunity, not history. A project that received funding five years ago should not automatically receive another round of funding today,” he said when addressing the Sarawak SOEs Transformation Programme – Phase 2: A Pledge for Good Governance, High Performance and Value Creation ceremony held at a hotel here today.
Abang Johari said transformation requires the State to become more selective in determining where public funds are invested, ensuring that capital is directed towards initiatives capable of delivering strategic value, measurable returns and long-term benefits to Sarawak.
He stressed that every major funding request must be subjected to rigorous evaluation and clearly justify its strategic purpose, expected financial return or public value, key risks, available alternatives and performance milestones before receiving approval.
According to the Premier, this approach is particularly important when the State provides support through equity injections or loans, as these financial exposures must be actively managed to safeguard public resources.
“Debt should have a repayment logic. Equity should have a value-creation logic. Grants should have an outcome logic,” he said.
Abang Johari said the objective is to protect the State’s balance sheet while continuing to support strategic growth sectors and high-impact initiatives.
His remarks came as Sarawak advances the second phase of its SOEs Transformation Programme, which seeks to strengthen governance, improve organisational performance and unlock greater value from State-owned assets and investments.
The Premier also emphasised that portfolio rationalisation would play a critical role in ensuring public funds are deployed effectively.
Under the transformation programme, every subsidiary and investment must have a clear strategic rationale, whether by supporting the parent organisation’s mandate, creating value, providing a distinct capability or opening new opportunities for growth.
Where those objectives are no longer being met, the State must be prepared to consider restructuring, consolidation, divestment or even winding up entities that no longer serve a meaningful purpose.
“We should not continue to maintain an entity simply because it once served a purpose,” he said.
Abang Johari stressed that capital allocation decisions must ultimately be guided by value creation rather than historical precedent, ensuring limited resources are channelled towards initiatives with the greatest potential to contribute to Sarawak’s economic development and long-term sustainability.
Deputy Premiers Datuk Amar Dr Sim Kui Hian and Datuk Amar Douglas Uggah Embas, Minister of Tourism, Creative Industry and Performing Arts Dato Sri Abdul Karim Rahman Hamzah, Minister for Women, Childhood and Community Wellbeing Development Dato Sri Fatimah Abdullah, and Sarawak Financial Secretary Dato Sri Dr Wan Lizozman Wan Omar were among the distinguished guests present. — DayakDaily
