by DayakDaily Team
KUCHING, April 17: Sarawak will implement strategic measures to strengthen its economic strategies and expand revenue streams as crude oil prices remain at USD65 per barrel, below Sarawak’s budget projections of around USD85 to USD90 per barrel.
Premier Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg announced this amid the current global economic uncertainty exacerbated by new tariffs imposed by major economies.
He further stressed the urgency for Sarawak to realign its economic policies in response to shifting global trade dynamics, including the recent introduction of tariffs by the US, noting that while these measures may not have a direct and significant impact on Sarawak, their potential ripple effects should not be underestimated.
According to a report by the Sarawak Public Communications Unit (Ukas), he pointed out that the current price of crude oil stands at US$65 per barrel, below Sarawak’s budget projections of around US$85 to US$90 per barrel.
“That’s a shortfall of approximately US$20. This means our revenue will decline, and we cannot predict with certainty what will happen by the end of this year or going into 2026.
“Given this context, we must adapt our economic policy to ensure we remain on a growth trajectory and continue to have sufficient revenue to meet our existing commitments,” he was quoted as saying while delivering his speech at the Sarawak Financial Secretary’s Office Ramah Tamah Aidilfitri 2025 event at a leading hotel here last night.
He revealed that among the strategic measures that will be taken is the consolidation and reassessment of existing assets.
Abang Johari added that the Sarawak government will explore ways to innovate and add value to its assets, in line with current regional developments, especially within the Asean member states.
He also emphasised the need to diversify Sarawak’s economic base as the State should not continue to heavily rely solely on oil and gas revenues.
“We need to find methods and approaches to asset management that can have a positive impact on the entire economy, despite some adjustments in the global economy.
“We cannot rely solely on oil and gas. We need to innovate and introduce technology in our efforts to increase the state’s revenue based on existing assets,” he added.
He said that another key strategy is to identify new sources of income within the legal framework and constitutional rights granted to Sarawak, using new technologies and assets.
According to him, this includes the consolidation of all government agencies and economic sectors, along with centralising government-owned assets under a single platform.
“In doing so, we will be able to explore various ways of leveraging these assets to generate additional revenue.
“For example, hydrogen is one of them. We derive it from water. If we use water to produce hydrogen, then we can consider imposing royalties on the use of that water.
“This will open up additional revenue sources from water. Apart from that, the hydrogen commodity itself will definitely provide us with additional income,” he said.
Among those present at the event include Sarawak Deputy Premiers Datuk Amar Douglas Uggah Embas and Datuk Amar Professor Dr Sim Kui Hian, Minister for Utility and Telecommunication, Dato Sri Julaihi Narawi, and other distinguished guest. – DayakDaily
