SARAWAK Premier Tan Sri Abang Johari Tun Openg today presented the state’s 2026 budget, totalling RM12.91 billion, with RM5.6 billion earmarked for operating expenditure and RM7.3 billion for development.
With projected revenue of RM13.05 billion, the budget is expected to generate a modest surplus of RM144 million, underscoring Sarawak’s commitment to prudent financial management.
Of the RM5.6 billion operating allocation, RM1.4 billion, or 25 per cent, is set aside for personnel emoluments, RM2.2 billion for supplies and services, RM1.8 billion for grants and fixed payments—including statutory bodies, local authorities, public debt servicing, pensions, gratuities, and scholarships—RM99 million for asset procurement, and RM150 million for other operating expenses.
Highlighting one of nine strategic thrusts, Abang Johari said the 2026 budget aims to transform and diversify Sarawak’s agriculture-based economy, which remains a critical pillar of state development and now ranks as the fourth largest contributor to Sarawak’s GDP.
To accelerate modernisation, RM73 million has been allocated for adoption of advanced technologies across the agricultural supply chain.
Breaking down the allocation, RM19.5 million will be directed to the Sarawak Agrotechnology Park in Semenggok and Tarat, RM27.5 million to precision farming parks in Kabuloh, Sungai Sebiew, and Rampangi, RM20 million for the Metropolitan Food Cluster in Opar, and RM5.9 million for implementing IoT systems in agriculture and aquaculture.
Tourism and cultural development also receive substantial investment. RM129 million has been set aside to transform the old legislative assembly building into a performing arts centre, redevelop the Kuching City South swimming pool into a water fun park and UNESCO Creative City of Gastronomy hub, support Sadong Jaya Mangrove Tourism, and fund museum projects.
“The 2026 Sarawak Budget remains a strategic and expansionary budget built on the success of revenue re-engineering and prudent financial management,” Abang Johari said during the tabling in the state legislative assembly, which commenced its week-long year-end budget sitting.
He added that the budget, under the theme “Empowering People, Advancing Prosperity, Building A Resilient Future,” empowers the state to make bold investments in infrastructure, digital transformation, and sustainable development, while prioritising the wellbeing of the rakyat.
In a landmark announcement, Abang Johari confirmed the introduction of a carbon levy on the oil, gas, and energy sectors from next year, as Sarawak intensifies efforts toward net zero emissions by 2050. “The levy will apply to emissions generated within Sarawak by regulated facilities in the oil and gas and energy sectors,” he said.
Revenue collected from the levy will be channelled into a dedicated Climate Change Fund, supporting renewable energy deployment, energy efficiency initiatives, grid modernisation, forest conservation, and climate-resilience projects that benefit communities across the state.
Abang Johari emphasised Sarawak’s readiness to collaborate with the federal government to ensure national carbon tax and carbon-pricing frameworks are harmonised.
“With our ordinance already in force, established measurement, reporting and verification systems, advanced modelling, and detailed policy design underway, Sarawak is well-positioned to support and lead Malaysia’s overall decarbonisation efforts, nationally determined contribution achievement, and the development of a strong domestic carbon market,” he said, noting that the carbon levy is poised to become a sustainable revenue source for the state.
The legislative basis for the levy is the Environmental (Reduction of Greenhouse Gases) Ordinance 2023, signalling Sarawak’s proactive approach to climate policy while balancing economic growth and fiscal responsibility. - November 24, 2025
