Sarawak ranks among top 4 contributors to Malaysia’s construction sector with RM14.7 bln investment

Abang Johari addressing the MOU) signing ceremony between Innocement Sdn Bhd and PMW Industries Sdn Bhd at a hotel in Kuching on June 7, 2024. Photo credit: Ukas

By Marlynda Meraw and Karen Bong

KUCHING, June 7: Sarawak ranks among the top four contributors to Malaysia’s construction sector in 2023, with a substantial RM14.7 billion or 11.1 per cent share out of the country’s total construction value of RM132.2 billion.

Selangor leads with RM32 billion (24 per cent), followed by Federal Territory with RM16.4 billion (12 per cent), and Johor with RM15.5 billion (11.5 per cent).


Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg emphasised that the construction sector in Sarawak will see an increase in activities, fueled by various ongoing and forthcoming infrastructure projects slated beyond 2030.

Highlighting the 2024 Sarawak Budget, he said over RM9 billion has been allocated for infrastructure development, marking a significant increase of RM4.56 billion compared to the previous year.

“I think the figure will increase. If Kuala Lumpur and Selangor are focusing on highway construction, Sarawak’s focus is on enhancing infrastructure, particularly road connectivity such as the Pan Borneo Highway, apart from the coastal highway and bridges amounting to about RM12 billion.

“Towards 2030, we are going to build additional road networks in Lawas and Limbang which would incur an estimate of RM6 billion, alongside the second trunk road project connecting Sri Aman right up to Betong, including additional bridges and feeder roads,” he said when witnessing the Memorandum of Understanding (MOU) signing between Innocement Sdn Bhd and PMW Industries Sdn Bhd at a hotel here today.

Abang Johari also mentioned that two other major anchor projects, namely an airport and ports, to be implemented beyond 2030 will definitely contribute to Sarawak’s gross domestic product (GDP) growth.

Despite acknowledging the substantial financial investments required, he emphasised the imperative timing of these infrastructural developments to avert potential cost escalations associated with delays spanning five to ten years.

“These projects will demand a substantial budget, but their multi-sectoral benefits will endure for seven to 10 years. Consequently, Sarawak is poised to experience a surge in business and construction activities both presently and well into the future.

“In Sarawak, another advantage lies in our competitive energy tariffs. We boast abundant energy sources, unlike other regions with shortages and high tariffs,” he said.

As such, Abang Johari welcomed the partnership between Innocement and PMW Industries as a significant boost to Sarawak’s construction sector.

The MOU aims to establish a manufacturing facility for concrete piles, poles, and related products, catering to the Sarawak market in Tanjung Manis, Bintulu.

Deputy Premier Datuk Amar Dr Sim Kui Hian, Sarawak Economic Development Corporation (SEDC) chairman Tan Sri Datuk Amar Dr Aziz Hussain, Innocement chairman Datu Dr Muhammad Abdullah Zaidell, Innocement chief executive officer Suhadi Sulaiman and PMW Industries executive chairman Zulkepli Hussin were among those present. — DayakDaily