By Lian Cheng
“To businesses, investors, and policymakers in this room—Sarawak is open for business. We are not just offering opportunities but a clear, stable, and growth-driven environment where investments flourish. Whether in hydrogen energy, AI-driven industries, or high-value manufacturing, Sarawak is the launchpad for Asean’s future.” Abang Johari (February 18, 2025)
SARAWAK’S history as a trading hub stretches back centuries, with early foreign merchants drawn to its rich natural resources. Today, Sarawak continues to shine as a beacon for investments, thanks to its business-friendly policies, abundant renewable energy resources and the emergence of industrial parks. These initiatives have laid the foundation to make Sarawak an ideal destination for investment from both near and far.
In 2023, according to the latest data from the Department of Statistics, Sarawak recorded total trade of RM193.4 billion and a trade surplus of RM68.3 billion, despite a global slowdown in trade. By the third quarter of 2024 (3Q24), the State had attracted investments totalling RM10.43 billion across 212 projects. Statistics from the Sarawak’s Ministry of International Trade, Industry, and Investment shows that of this total, domestic direct investments (DDIs)—including reinvestments by existing foreign investors utilising domestic funding—accounted for RM7.18 billion, while foreign direct investments (FDIs) reached RM3.25 billion.
Between 2019 and 2023, the Sarawak government approved RM31.8 billion in FDI for high-tech industries, with a focus on the electrical and electronics, chemical, and green metals sectors, highlighting the State’s strategic commitment to building advanced industries.
Under the visionary leadership of Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, Sarawak’s foreign investment landscape has grown by leaps and bounds. His bold ambition to transform Sarawak into the energy powerhouse of the Association of Southeast Asian Nations (ASEAN) and a green energy hub has ignited investors’ interests, driven by the State’s firm commitment to sustainable development and innovation.
These high-impact investments have not only fuelled Sarawak’s economic growth but have also generated employment opportunities, empowered local communities, and accelerated progress across the State. Countries such as South Korea, Japan, China, and Singapore have emerged as major investors, particularly in green energy production.
A Magnet for Foreign Investments
One of Sarawak’s greatest appeals lies in its strategically developed industrial parks, located within key economic areas across the State. Building on the success of the Sarawak Corridor of Renewable Energy (SCORE), a business and investment corridor designed to uplift communities from the central to northern regions, Abang Johari established three regional development agencies under the Regional Corridor Development Authority (Recoda), the entity overseeing SCORE’s development.
In 2017, recognising that large parts of Sarawak remained underdeveloped, Abang Johari, then Chief Minister, identified the urgent need to unlock the economic potential of rural and hinterland areas. To address this, he formed the Upper Rajang Development Agency (URDA), the Highland Development Agency (HDA), and the Northern Region Development Agency (NRDA) under Recoda’s umbrella.
These agencies share a collective objective: to implement infrastructure projects, amenities, and socio-economic programmes across central, hinterland, and northern regions of Sarawak, bridging the urban-rural divide and improving the quality of life for local communities. By lighting the path to these rural areas, investments are expected to follow which will create new opportunities and uplift livelihoods.
A standout success under SCORE is the Samalaju Industrial Park in Bintulu, which has become a magnet for investments. In 2021 alone, it attracted commitments totalling RM21 billion and generated RM4.6 billion in economic spin-offs for the local economy, according to Deputy Premier Datuk Amar Awang Tengah Ali Hasan.
“In 2021, Samalaju Industrial Park recorded total exports of RM13.9 billion, compared to RM9.4 billion in 2020,” he said during the groundbreaking ceremony of an epichlorohydrin (ECH) manufacturing plant at Samalaju Industrial Park on November 2, 2022.
The ECH plant, a joint venture between OCI Group (OCI) and Korea Kumho Petrochemical Group, is estimated to cost around RM1.7 billion. Awang Tengah, who also serves as Minister for International Trade, Industry and Investment (Mintred) and Second Minister for Natural Resources and Urban Development, said several new investors are currently in negotiations with the Sarawak government.
These investors are particularly drawn to Sarawak’s green hydropower potential, which offers a sustainable energy source for producing green products such as steel, hydrogen, and components for electric vehicle (EV) batteries.
Attracting Huge Conglomerates of the East
With its business-friendly policies and abundant renewable energy resources, Sarawak has attracted several major foreign investors including South Korean industrial giants such as Samsung and Lotte Corporation. On July 31, 2024, Awang Tengah announced that Lotte Energy Materials, a leader in advanced battery components, is expected to invest RM1.2 billion in Sarawak.
The investment is set to significantly bolster the State’s industrial development, with the potential for an additional RM2.5 billion in reinvestment, according to the company’s senior vice president, Park Ingoo. Lotte has established its first overseas factory at the Samajaya Free Industrial Zone in Kuching to manufacture Elecfoil, a key component in EV and energy storage systems.
Despite global uncertainties, Lotte Energy Materials remains confident in Sarawak’s industrial resilience and long-term stability. The company also announced plans to expand its operations in Sarawak, positioning the State as its key hub for producing cutting-edge battery materials. The expansion is expected to generate over 200 new jobs, fuelling further industrial growth and boosting the local economy. The year 2024 also marked a milestone for investments from Sarawak’s strongest trading partner, China.
China-based LONGi Green Energy Technology Co Ltd, the world’s largest and leading manufacturer of high-efficiency monocrystalline solar cells and modules, expanded its footprint in Sarawak with the launch of its first solar manufacturing facility at the Samalaju Industrial Park in Bintulu.
Spanning 125 acres, the monocrystalline ingot manufacturing project carries a forecast investment of RM1.3 billion (approximately two billion Renminbi). According to LONGi, the Samalaju Industrial Park was chosen for its proximity to raw material suppliers, deep-sea port access, and affordable, sizeable industrial land.
On September 21, 2024, Abang Johari announced that in 2023, China had invested over RM19.9 billion across multiple sectors in Sarawak, including solar, steel, and wood-based manufacturing, creating more than 10,000 jobs and significantly boosting the region’s economy. In the same year, Sarawak’s exported RM18.8 billion worth of liquefied natural gas, edible oils and basic metal to China.
He highlighted the strategic significance of Sarawak’s partnership with China, particularly in helping Sarawak achieve its goals of becoming a competitive digital economy and a regional hub for green energy production and distribution. Sarawak has seen major successes working together with China in hydropower sector in projects such as the building of the Bakun Hydroelectric Power (HEP) dam, the Murum HEP dam and the Baleh HEP dam.
Attracting Western Capital
Beyond Sarawak’s traditional trade partners, the State has also attracted interest from other global players, including Australia and nations under European Union. In 2023, Sarawak successfully secured over RM10.66 billion in investments from the European Union (EU). These investments, primarily from the Netherlands, Belgium, and Germany, were focused on sectors such as electrical and electronics (E&E), basic metals, and petroleum products.
Awang Tengah elaborated that to encourage more investments, Sarawak is now focused on the development of new economic sectors such as the hydrogen economy, digital economy, renewable energy, finance and talent development. This strategic pivot represents Sarawak’s deliberate transition from a conventional resource-based economy toward a more sustainable low-carbon, green, and circular economic model.
Meanwhile for Australia, Prime Minister Datuk Seri Anwar Ibrahim announced at the start of 2025 that Australian metal mining giant Fortescue had agreed to invest in green hydrogen development in Bintulu, Sarawak. According to Anwar, the agreement was reached following a meeting with Fortescue’s executive chairman and founder, Andrew Forrest AO on the sidelines of the World Economic Forum (WEF) Annual Summit 2025 in Davos, Switzerland.
Green Energy, the ‘it’ Factor
The wave of interest and established investments pouring into Sarawak in recent years is rooted in the State’s unwavering commitment to building a sustainable, green energy future. Blessed with abundant renewable energy resources and firmly aligned with the global agenda on climate change, Sarawak has emerged as an enticing and eco-friendly destination for industrial development.
Investors are increasingly confident in Sarawak’s ability to power its industries with clean, green energy, addressing environmental concerns while offering strong economic potential. This unique combination of sustainability and economic potential has elevated Sarawak’s standing as a green energy powerhouse, setting a leading example within the ASEAN region.
Abang Johari reaffirmed the government’s commitment to this transformative vision, with the hydrogen sector identified as a key pillar to Sarawak’s green energy industry. As of September 21, 2024, Sarawak’s Hydrogen Economy Roadmap had secured strategic partnerships worth USD4.2 billion in strategic partnerships to support the production of green energy for both domestic and international markets.
These partnerships encompass the development of extensive hydrogen production facilities such as the H2ornbill Project and H2biscus Project, set to be established within the Sarawak Hydrogen Hub in Bintulu and the Rembus Depot near Kuching.
Both projects are undertaken in collaboration with foreign partners, including Japan’s Eneos and Sumitomo Corporation, as well as South Korea’s Samsung Engineering, Posco, and Lotte Chemical. Supporting this ecosystem, SEDC Energy has partnered with Gentari, Petroliam Nasional Bhd’s (PETRONAS) green energy subsidiary, to develop shared infrastructure for the Hydrogen Hub, including pipeline networks to facilitate the H2ornbill and H2biscus projects.
Together, these initiatives are projected to produce up to 240,000 tonnes of green hydrogen annually for export, while also targeting around 2,000 tonnes per year for domestic consumption. This positions Sarawak’s Hydrogen Hub as one of the world’s emerging leaders in clean hydrogen production.
Complementing these efforts, SEDC Energy is also constructing a hydrogen production plant and refuelling station to support the Rembus Depot, a vital component of the Kuching Urban Transportation System (KUTS) and its Autonomous Rapid Transit (ART) network. The plant is expected to produce 1,900 tonnes of hydrogen per year upon its completion in 2025.
Meanwhile, Masdar of the United Arab Emirates (UAE) and China have shown great interest in investing USD10 billion respectively in solar energy in Sarawak. A memorandum of understanding was signed with UAE in December 2023 to develop floating solar power projects.
Policies to Drive Future Investments
The influx of diverse investments, particularly in renewable energy and high-tech industries, signals the dawn of a transformative new era for Sarawak. Guided by the key pillars of the Post Covid-19 Development Strategy (PCDS) 2030, and with Abang Johari at the helm spearheading forward-thinking ideas and policies, Sarawak is advancing to the forefront of the global stage.
Under Abang Johari’s steady guidance, Sarawak presents a compelling value proposition across multiple sectors, each aligned with global sustainable development goals and rooted in environmental, social, and governance (ESG) principles.
This growing momentum is positioning the State for a resilient and prosperous future, buoyed by impactful and long-lasting investments that will shape its trajectory for decades to come. As he continues to chart bold and strategic pathways forward with strategic initiatives to boost Sarawak’s high-potential green and digital economy, the State stands at the vanguard of investment potential, ready to harness new opportunities and set benchmarks for sustainable progress.
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.
