Sarawak advances technology-driven economy with RM6.8 bil reinvestment by X-FAB, OCI Tokuyama, Western Digital

Infographic on X-FAB, OCI Tokuyama and Western Digital.
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By Lian Cheng

KUCHING, May 19: X-FAB, OCI Tokuyama Semiconductor Materials and Western Digital re-investments of RM3 billion, RM2 billion and RM1.8 billion are evidence of Sarawak’s success in driving high-value, technology-intensive industries.

International Trade, Industry and Investment Minister Datuk Amar Awang Tengah Ali Hasan reported that from 2021 to 2025, Sarawak attracted RM116.8 billion in approved investments across the manufacturing, services, and primary sectors. These investments are expected to generate approximately 28,190 jobs.

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The manufacturing sector, he said, continues to drive investment growth, particularly in high-value and technology-intensive industries such as semiconductors and green metals.

“To date, 65 percent of the total approved projects have been realised and the remaining projects are at various stages of pre-implementation.

“Among the key developments is the RM3 billion expansion by X-FAB in Kuching and the RM2 billion investment by OCI Tokuyama Semiconductor Materials in Bintulu. In addition, Western Digital is committed to re-invest RM1.8 billion in the state-of-the-art glass substrate plant to support the AI industry,” said Awang Tengah when delivering his ministerial winding up speech at Sarawak Legislative Assembly here today.

Together, these projects, he said, are expected to create approximately 1,300 high-skilled jobs and strengthen Sarawak’s position in the global semiconductor supply chain.

Meanwhile, he said in the first quarter of 2026, Sarawak approved 12 domestic investment projects worth RM347.1 million, mainly in services-related industries.

He said several foreign investment projects are also undergoing preliminary assessments, particularly in digital technology, renewable energy, and logistics.

Sarawak is also strengthening its position as a regional renewable energy hub through green energy and hydrogen economy initiatives, with Bintulu as a Transitioning Industrial Cluster and Kuching as a Low Carbon Hub, Awang Tengah who is also Natural Resources and Urban Planning Minister added.

He said to enhance the investment ecosystem, the Sarawak Government is developing SelectSarawak, a single integrated investment management system to improve coordination, accelerate approvals, and facilitate project implementation.

At the same time, Awang Tengah who is Bukit Sari assemblyman (GPS-PBB) said InvestSarawak will continue providing end-to-end investor facilitation and support throughout the investment lifecycle.

Meanwhile, despite global uncertainties during the 12th Malaysia Plan, Sarawak’s trade performance remained resilient.

He said total trade grew by an average of 11 percent annually, increasing from RM118 billion in 2020 to RM179 billion in 2025. Sarawak also maintained a strong and consistent trade surplus.

Exports expanded by 12 per cent annually, from RM77 billion to RM119 billion. Imports grew steadily by 11 per cent, from RM40 billion to RM60 billion, reflecting sustained economic activity and investment demand.

As a result, Awang Tengah said Sarawak’s trade surplus increased significantly, from RM36 billion in 2020 to RM59 billion in 2025. This reflects the strength and competitiveness of Sarawak’s export industries.

“However, trade moderated in the first quarter of 2026. Exports declined by 8.1 percent, while imports contracted by 9.2 per cent due to softer external demand and ongoing global uncertainties.

“Nevertheless, Sarawak continued to record a healthy trade surplus of RM15.6 billion, demonstrating the resilience of our economy,” said Awang Tengah. —DayakDaily

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