By Marlynda Meraw
KUCHING, Oct 8: The Sarawak government is exercising prudence in managing its finances to ensure the State does not fall into debt, says Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
To him, the government must change the way it manages expenditure and revenue by adopting accurate accounting standards to reflect the State’s true fiscal position.
“The revenue and expenditure must be balanced; otherwise, we will be in debt,” said Abang Johari during his speech at the Sarawak Corporate Leadership Summit 2025 held at the Damai Lagoon Resort here today.
Abang Johari added that Sarawak is working closely with credible institutions such as the World Bank to remain competitive within Asia’s economic landscape.
He pointed out that the federal government debt had increased to RM1.3 trillion as of June 2025, amounting to over 60 per cent of Malaysia’s gross domestic product (GDP), a situation Sarawak intends to avoid.
“If it (debt) is above 60 per cent (GDP), you can only look at the 40 per cent. You spend so much time servicing the interest that the productive sector is not being fed. So we (Sarawak) cannot be trapped in that economic situation,” he said.
Citing Norway as an example, Abang Johari noted that the country’s sovereign wealth fund has grown to USD2 trillion.
He noted that Sarawak has established its own Sarawak Sovereign Wealth Future Fund (SSWFF), which began operation on January 1, 2024, with RM8 billion to secure its autonomy and financial position.
He added that Sarawak’s financial position remains strong, noting that the State’s revenue has doubled from RM6 billion to RM14 billion. He expressed hope that by the end of the year, the figure would remain at a similarly high level.
“But one thing for certain, we (Sarawak) have enough. We have enough surplus for development projects. And we are working very hard to increase that.
“We have very strong natural capital. What we want now is to improve our human capital. If you get the right human capital, the world is yours,” he said.
The Sarawak Corporate Leadership Summit 2025 also saw the signing of a Memorandum of Understanding (MoU) between the Sarawak Centre of Performance Excellence (SCOPE) and the Institute of Corporate Directors Malaysia (ICDM) to advance Sarawak’s vision of building an equitable, resilient, and future-focused economy anchored on strong governance.
Abang Johari witnessed the exchange of the MoU. Also present at the event are Sarawak State Secretary Dato Sri Mohamad Abu Bakar Marzuki, Minister in the Premier’s Department Dato Sri John Sikie Tayai, Minister of Tourism, Creative Industry and Performing Arts Dato Sri Abdul Karim Rahman Hamzah, Minister of Modernisation of Agriculture and Regional Development Dato Sri Stephen Rundi Utom, and chairman of Institute of Corporate Directors Malaysia (iCDM) Tan Sri Zarinah Anwar. –DayakDaily
