By Karen Bong
KUCHING, Dec 3: There are no “hidden debts” in Sarawak’s finances, only allegations imagined by Padungan assemblyman Chong Chieng Jen, said Minister of Finance and New Economy II Datuk Amar Douglas Uggah Embas, who stressed that the State’s accounts remain transparent, internationally recognised, and backed by 23 consecutive years of clean Auditor-General certification.
Responding to Chong during his ministerial winding-up speech at the Sarawak Legislative Assembly (DUS) today, Uggah said the opposition assemblyman’s repeated claims were unfounded and an attempt to misled and confuse the public.
“If there truly were ‘hidden debts’, agencies like Moody’s, S&P and RAM would have downgraded us. They did not, because no such hidden debts exist. It is all imagined by Padungan,” he said.
Uggah said Chong’s accusations mirrored the prediction made in 2018 by a former federal finance minister that Sarawak would go bankrupt within three years, a claim proven wrong as the State’s reserves have grown and the Sarawak Sovereign Wealth Future Fund (SSWFF) has since been established.
Addressing Chong’s claim that Sarawak was running a deficit for 2025, Uggah explained that the revenue projection had been revised down to RM12.1 billion, a 15 per cent reduction, due solely to the prolonged global slump in crude oil prices hovering around USD69 per barrel.
“This is a global phenomenon affecting all oil-producing nations. It is driven by international supply-demand shifts and geopolitical uncertainties. Sarawak remains resilient through diversification, cost optimisation and strategic long-term investments,” he added.
The session saw tense moments as Chong pressed Uggah on what he described as outstanding debts linked to government-owned entities.
Chong asserted: “There was never any anti-development statement made by me. The Deputy Minister is deliberately trying to avoid the question that in 2025 the Sarawak government is running a deficit given the RM2 billion shortfall. I also sought clarification on debt owed by the Sarawak government. As far as I know, several government-owned companies raised loans: RM5 billion, RM4.7 billion, USD800 million, RM1.5 billion sukuk, and another RM15 billion. The government undertakes to pay these loans. So my question is: how much in total has the State government borrowed, how much interest is charged, and what prepayments have been made?”
He also accused Uggah of avoiding the questions and launching a personal attack: “The Deputy Minister did not answer the questions but went on a personal attack and put words in my mouth. That is improper, uncalled for and unparliamentarian.”
Uggah denied launching a personal attack, saying: “There is no personal attack, but the matters raised seemed to imply that all development in Sarawak is improper, so that is anti-development.”
At this point, the Speaker interjected, ruling: “Any member who makes a statement to deliberately mislead the House is deemed out of order. I rule that the reply by the Deputy Premier in explaining the RM144 million surplus under the alternative funding is the truth.”
Chong rose again to express dissatisfaction, insisting the figures showed a deficit.
Uggah fired back, stressing that the 2026 budget recorded a RM144 million surplus: “This is where you don’t understand how the government operates. You want to lump the RM5.7 billion alternative funding under the development fund. That is incorrect.”
The Speaker then urged Uggah to proceed with his winding-up as he had “justified, deliberated and elaborated on the matter.”
Touching on Chong’s accusation that the government claimed Sarawak had “no debt,” Uggah clarified that he had never said such a thing.
“Alternative funding is part of the debt,” he said, before highlighting that Sarawak’s debt-to-GDP ratio stands at just 11.5 per cent, far below the federal government’s 65 per cent.
“Which is better?” he asked. “The rest of the information you need is in the command paper.”
When Chong responded, “There is more,” Uggah retorted sharply: “More is your imagination. Maybe after losing Sabah, you have so many imaginable.”
Despite global headwinds, Uggah reaffirmed that Sarawak continues to table a surplus budget for 2026, underscoring the State’s disciplined and proactive financial management.
“We remain on a sustainable path, weathering current challenges while preparing to emerge stronger when markets recover,” he said. — DayakDaily
