THE rural areas of Sarawak that still lack basic infrastructure - water, electricity, roads, bridges – could benefit from the RM5.9 billion allocation proposed in the 2025 Budget, an academic said.
These areas are where infrastructure gaps are most pronounced, Nivakan Sritharan of Swinburne University of Technology, Sarawak campus in Kuching, said.
The lecturer from the Faculty of Business, Design and Arts, said the increase in the allocation will allow the Sarawak government to build more of these basic infrastructures.
Nivakan said in building these infrastructures, there would be an economic knock-on effect pointing out that these projects would typically generate employment in the areas they are implemented.
It would therefore stimulate the local economies and enhance the livelihood of the communities, he added.
Nivakan said improved infrastructure will lead to better logistics, transportation, and business activities, making Sarawak a more attractive destination for private investments.
The wholesale and retail trade, accommodation, transportation and storage, he said, will also benefit from the investments, further driving the growth of the services sector, the main economic driver for Sarawak.
Major physical infrastructures that are still on the planning board, like the Sarawak Water Supply System and the Coastal Road Network that will span from one end of the state to the other, will support the state's broader goal of enhancing its competitiveness, Nivakan said.
“This is crucial as Sarawak aims to position itself as a developed region with balanced socioeconomic development across urban and rural areas.
“These investments will uplift the well-being of rural communities and unlock their economic potential, allowing them to contribute more effectively to Sarawak’s overall economic development.
“In turn, this will help balance urban and rural growth, ensuring sustainable development across the state.”
On the doubling of the special grant from RM300 million to RM600 million, Nivakan said when it is coupled with the increased development allocation, the financial resources would be key to narrowing the development gap between Sarawak and the other states in the peninsula.
It would also give Sarawak some leeway on its fiscal policy, ensuring a more balanced and sustainable approach to managing the state's finances, he added.
“With a larger financial cushion, the state will be better positioned to invest in long-term growth projects without placing undue strain on its budget.”
Projects and sectors that most likely will get priority, he said, are sectors critical to the state's development - digital infrastructure, renewable energy, and agriculture.
“These priorities align with the state's goal of becoming a developed region while also addressing long-term global challenges, such as climate change and economic transformation.”
He said with such a financial resource at its disposal, Sarawak might also focus on utilising it to strengthen its human capital through investments in education and training, particularly in rural areas.
Another area where the state could funnel some of the allocations is human resource development.
“Sarawak can ensure that its population is prepared to meet the demands of a rapidly evolving economy by upskilling the workforce and promoting innovation.” - October 19, 2024
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