DUN Sarawak: Sarawak's earnings are estimated at RM15 billion

KUCHING, Oct 12: Sarawak's revenue for 2027 is projected to reach RM15.091 billion, an increase of RM2.042 billion or 16 percent from RM13.049 billion estimated in 2026.

Sarawak Premier, Datuk Patinggi Tan Sri Abang Johari Tun Openg said the forecast was the highest total revenue ever recorded by the state, thus reflecting Sarawak's growing financial position.

"State revenue is projected to reach RM15.091 billion, an increase of RM2.042 billion or 16 percent over the estimated 2026 figure of RM13.049 billion.

"This achievement certainly marks the highest ever expected revenue recorded by the state", he said.

He said this while presenting the Sarawak Budget 2027 at the Sarawak State Legislative Assembly (DUN) Conference, here today.

According to him, the state income also recorded more than double growth in 10 years, compared with RM6.864 billion recorded in 2017.

For 2027, the tax revenue is estimated to be RM6.4 billion or 43 percent of the state's total, while non-tax revenue is RM6.7 billion or 45 percent.

Among the main contributors to state income are state sales tax of RM4.6 billion, dividend income of RM2.6 billion and cash compensation in exchange for oil and gas rights of RM2.57 billion.

In the face of global economic uncertainty, the Government of Sarawak has also stepped up efforts to diversify revenue sources in order to reduce dependence on traditional sectors.

"From 1 January 2027, the raw water royalty rate will be revised from 2.5 cents to five cents per cubic meter, which is the first adjustment since 2020", said Abang Johari.

He said the move was timely to strengthen Sarawak's fiscal base, as well as ensure that households and businesses are not burdened, given that royalty is an upfront cost incurred by operators.