By Marlynda Meraw
“Sarawak stands at a critical juncture where we must decouple GDP growth from unsustainable energy and resource consumption. This shift will not happen on its own. It requires Sarawak to embrace green economy policies to drive this transition.” Abang Johari (August 29, 2024).
THE Covid-19 pandemic dealt Sarawak a significant economic blow, with its gross domestic product (GDP) contracting by 6.8 per cent in 2020. The State’s export performance shrank by 24.2 per cent, while unemployment rose from 3.1 per cent in 2019 to 4.3 per cent in 2020.
In response to this unprecedented downturn, Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg established the Sarawak Economic Action Council (SEAC) on May 6, 2020. Tasked with designing a long-term development framework, SEAC engaged over 1,000 individuals across 250 public and private sector organisations to formulate what became the Post Covid-19 Development Strategy (PCDS) 2030.
The central objective of PCDS 2030 is to propel Sarawak towards becoming a high-income and developed State by the year 2030. This transformation is defined by three measurable outcomes: a GDP of RM282 billion, a median monthly household income of RM15,000, and a 45 per cent reduction in greenhouse gas (GHG) emissions, aligning with its pillars of economic prosperity, social inclusivity, and environmental sustainability.
Strategic Thrusts and Sectoral Focus
To achieve an average annual economic growth rate of eight per cent between 2021 and 2030 in order to reach a GDP of RM282 billion, PCDS 2030 is driven by seven strategic thrusts. These include enhancing economic structure through increased productivity and downstream activities, improving the ease of doing business, targeting high-impact investments, optimising asset and fund utilisation, accelerating digital adoption, ensuring social inclusivity, and safeguarding environmental sustainability.
Six key economic sectors anchor the strategy. In manufacturing, the focus is on export-led growth and industrial diversification, which is supported by developments such as the Sama Jaya Industrial Park and the Sarawak Corridor of Renewable Energy (SCORE) initiative.
In commercial agriculture, the shift is from subsistence farming to large-scale, market-oriented production, backed by agroparks and initiatives like swiftlet cultivation and aquaculture zones. As such is the 260-acre Integrated Agropark with Dynamic Modern Farming in Igan, built to showcase sustainable farming techniques, including smart agriculture. The agropark, valued at RM20 million, is set for completion in 2026.
The tourism sector aims for a 7.5 per cent annual growth rate in arrivals, with investments in accessibility, ecotourism, cultural assets, and event-driven tourism. In 2024, an allocation of RM241.02 million has been channelled by the Sarawak government to improve tourism facilities across national parks and nature reserves, with a total of 14 projects approved; three under Projek Rakyat (RM71.28 million), five approved under the twelfth Malaysia Plan (12MP) valued at RM21.33 million, and six under the Alternative Fund (RM27.9 million). The forestry economic sector seeks to move beyond raw exports towards value-added processing and sustainable forest management. At the same time, the mining sector is being restructured through strengthened regulations and private investment.
In the expansion of healthcare coverage and support programmes, the social services sector is focused on providing for the low-income (B40) groups, especially in ensuring 100 per cent healthcare coverage for children within this group. In 2023, the Sarawak government aimed to provide free insurance and welfare assistance for the B40 households annually beginning in 2024, citing the State’s transition into an ageing society by 2028. In terms of home ownership, the State government also launched the Housing Deposit Assistance Scheme (HDAS) in 2021, offering a maximum of RM10,000 assistance to first-time buyers.
Energy Transition and Green Economy
Performance management of PCDS 2030 is led by the Performance Management and Delivery Sector (PMD) within the Economic Planning Unit, ensuring progress through planning, monitoring, capacity building, and strategic communication. Seven enablers underpin these sectoral efforts: digital transformation, innovation, infrastructure connectivity, transport integration, universal utility access, renewable energy, and human capital development.
Renewable energy and utilities are the fundamental enablers to both PCDS 2030 and Sarawak’s broader Sustainability Vision 2030. Sarawak aims to maintain a renewable energy mix of at least 60 per cent by 2030, with significant GHG reductions through electrification, particularly in mobility. Flagship infrastructure such as the Batang Ai, Bakun, Murum, and Baleh hydroelectric plants form the backbone of this renewable capacity, complemented by solar projects like the 50MW Batang Ai floating solar farm and battery energy storage systems in Sejingkat.
Efforts are underway to connect Sarawak’s electricity supply grid to Singapore via a potential interconnection, and it is expected to be fully operational by 2031. As of May 2024, the project is currently undergoing technical research, involving survey work for the routes of the undersea cables. Hydrogen energy, a signature initiative, includes the State as Southeast Asia’s first hydrogen production plant; the Rembus H2 Plant in Kota Samarahan, which is set to produce 1,825 tonnes of hydrogen annually, will play an important role in deploying the hydrogen-powered Autonomous Rapid Transit (ART) vehicles and buses.
Sarawak’s Net Zero Strategy and Green Economy Policy envision a low-carbon, inclusive future. These are supported by a new legal framework: the Environment (Reduction of Greenhouse Gas Emissions) Bill 2023, which was passed in November 2023, making Sarawak the first Malaysian State to legislate carbon reduction. The strategy includes six pillars: energy, mobility, land use, waste and water, low carbon cities, and industry—and is enabled by initiatives in carbon trading, green financing, and sustainable innovation.
Harmonising with Sustainable Development Agenda
While the PCDS 2030 is tailored specifically to Sarawak’s developmental needs, its foundations are firmly aligned with the broader global and national sustainability agendas, particularly the United Nations (UN) Sustainable Development Goals (SDGs) and Malaysia’s national development frameworks. The PCDS 2030 is structured around three central pillars: economic prosperity, social inclusivity, and environmental sustainability. These pillars mirror the UN SDGs, which aim to eradicate poverty, protect the planet, and ensure prosperity for all.
Key targets under PCDS 2030, such as increasing household incomes, reducing GHG emissions by 45 per cent, expanding access to basic infrastructure, and promoting inclusive growth is in direct support to the SDG goals such as No Poverty (Goal 1), Decent Work and Economic Growth (Goal 8), Industry, Innovation and Infrastructure (Goal 9), Reduced Inequalities (Goal 10), and Climate Action (Goal 13). Sarawak’s Green Economy Policy, integrated into PCDS 2030, adds another layer of alignment with the SDGs by addressing sustainable land use, clean energy, biodiversity conservation, and climate resilience.
These initiatives reflect Malaysia’s commitment to the SDGs through its Shared Prosperity Vision 2030 and the 12MP, both of which emphasise inclusive development and environmental stewardship. By embedding these global values into its local governance and strategic frameworks, Sarawak not only addresses post-pandemic recovery but also contributes meaningfully to Malaysia’s international commitments, including the Paris Agreement 2015 on Climate Change and the 2030 Agenda for Sustainable Development.
Towards 2030: Inclusive, resilient, and forward-looking
PCDS 2030 is not merely a recovery blueprint, it is a declaration of intent. By elevating Sarawak’s economy from RM136 billion in 2019 to RM282 billion by 2030, creating 195,000 new jobs, and closing the urban-rural divide, the strategy sets a bold course. It seeks to grow Sarawak’s household income to RM15,000, while empowering sectors through digital innovation and smart governance.
More than a roadmap, PCDS 2030 represents Sarawak’s determination to emerge stronger from crisis, build a resilient and equitable society, and establish itself as a leader in sustainable development. The journey ahead is ambitious, but the foundation laid is deliberate, and the vision, uncompromising.
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.
