By Doreen Ling
KUCHING, Nov 24: An allocation of RM17.4 million will be allocated in 2026 for the continuation of two reform initiatives—the transformation of State-owned enterprises (SOEs) and results-based budgeting (RBB).
In tabling the Sarawak Budget 2026, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg reiterated the State government’s commitment to strengthening its public financial management to ensure efficient and impactful utilisation of resources.
“The Sarawak government’s State Ownership Policy is a major, first-of-its-kind reform in Malaysia, designed to transform the governance and performance of its SOEs. The policy aims to establish the State as an active, professional, and accountable shareholder, adopting international best practices, and is being developed in partnership with the World Bank.
“This policy represents a major shift in how Sarawak manages and governs its SOEs. Under this policy, each SOE will operate with a clear and defined mandate—be it strategic, developmental, commercial, or a hybrid—while fostering a performance-driven culture focused on delivering tangible outcomes for the people of Sarawak,” he said.
On the reasons for introducing the policy, the Premier elaborated that it was to bring greater clarity to the ownership and purpose of SOEs, eliminate fragmentation and duplication across entities that serve similar functions, reduce dependency on State funding and build financially resilient enterprises, and centralised ownership that enables closer coordination between SOEs’ oversight and the State’s overall budgeting process.
“Above all, we want our SOEs to be managed professionally, transparently, and with the highest standards of governance and integrity,” he said.
At the same time, he said that the Sarawak Code of Corporate Governance will set out clear standards of board independence, accountability, transparency, and ethical conduct.
“This will strengthen oversight, prevent conflicts of interest, and ensure that decision-making is always in the best interest of the State and the rakyat.
To support this governance framework, a central monitoring mechanism will be established to track compliance and performance across all SOEs under the State’s portfolio,” he said.
Meanwhile, Abang Johari added that the Sarawak government is also embarking on a study that aims to create SOEs that are financially self-reliant and can contribute positively to the State’s fiscal positions.
The expected outcomes of the study are as follows:
- Streamlined and consolidated SOEs—less in number, but stronger in capacity and focus
- Reduce burden on State finances while improving efficiency and performance
- Unlock more opportunities for collaboration with the private sector as SOEs become more commercially oriented
As for results-based budgeting (RBB), the Premier said that in 2024, the State took a major step forward with the implementation of the RBB framework.
“However, RBB alone cannot deliver the full transformation we envision. It must operate within a broader and interconnected integrated results-based management (IRBM) ecosystem that aligns every part of government.
To achieve this, the Economic Planning Unit (EPU) Sarawak is entrusted to take the lead in establishing the IRBM framework. This framework will form the foundation for a result-based governance framework that links policy vision, strategic planning, budgeting, implementation, and evaluation into a seamless chain of accountability,” he said. — DayakDaily
