SARAWAK must reconsider its development strategies in response to increasing global economic uncertainty, particularly in light of the United States' move to implement new tariffs, Premier Tan Sri Abang Johari Tun Openg has said.
Speaking at a Hari Raya Aidilfitri gathering hosted by the Sarawak Premier’s Department, Abang Johari stressed that while the state is not directly targeted by the tariffs, Sarawak could still feel the ripple effects, especially in terms of oil prices and the broader commodities market – key contributors to its revenue.
"Today, the price of oil is about US$65 per barrel, although we had expected it to be between US$85 and US$90 per barrel," he said.
"As a result, there is an impact on us. The impact may be a decline in our income, and secondly, there is no clear direction in the trade policies between developed and developing countries."
He added that this unpredictability necessitates attention from the state leadership.
"That is why, whether we like it or not, we must pay attention to this uncertain economic situation," Abang Johari said.
Despite these challenges, the Premier highlighted Sarawak’s strategic advantages, especially in energy production, including green energy. He noted that the state had already been recognised by the World Economic Forum as an emerging hub for development.
"The advantage we have must be combined with an efficient public service that is prepared to act as the engine of government, working hand-in-hand with the state's leadership to adapt to these changes," he said.
He further stated that this level of readiness is essential as Sarawak moves forward with programmes under the 13th Malaysia Plan. The state will be focusing its efforts on developing key industrial sectors including infrastructure, manufacturing, digitalisation, and food production.
"I am urging the agencies coordinating the implementation of these projects to get on the ground. As long as a project has been announced by myself and my colleagues in the Cabinet, and funds have been allocated, it must be implemented without delay," he said.
"To carry this out, we are calling for strong cooperation between the public service and us, the Sarawak leadership, so that our state can progress further," he added. – April 14, 2025
