Premier: Key collaborations can transform Borneo into Asean economic powerhouse

KUCHING (Feb 3): Borneo Island could emerge as a new economic powerhouse within Asean if countries in the region strengthen strategic cooperation, particularly in green energy, semiconductor development, and the digital economy, said Datuk Patinggi Tan Sri Abang Johari Tun Openg.

The Premier said Borneo, which comprises Indonesia’s Kalimantan region, Sarawak in Malaysia, and Brunei Darussalam holds significant potential for collaboration under a common framework that could contribute to Asean’s growth and strengthen its engagement with the wider international community.

He said Sarawak, in particular, has strong potential to develop renewable or green energy, which has become increasingly critical amid global climate change concerns.

“This form of energy is extremely important in the context of the climate change issue currently taking place.

“As such, I believe we can work together to supply surplus energy that can be shared among Asean countries,” he said, according to a Sarawak Public Communications Unit report.

He said this at a press conference after delivering a keynote address at the Indonesia Economic Summit (IES) 2026 in Jakarta, Indonesia.

Abang Johari said Sarawak is already supplying electricity to West Kalimantan and, through Sarawak Energy, has a 25 per cent stake in a hydroelectric project in North Kalimantan.

He added that Sarawak is also supplying 100 megawatts (MW) of electricity to Sabah, with the potential for future capacity expansion.

“By the end of this year or in the first quarter of 2027, we will also be supplying power to Brunei.

“After that, electricity will be supplied via submarine cable to Peninsular Malaysia and Singapore,” he said, adding that these initiatives would serve as a foundation for attracting foreign investment.

On regional cooperation, Abang Johari said government-to-government frameworks between Sarawak and Kalimantan, together with the BIMP-EAGA platform, would further strengthen cross-border economic collaboration.

He also highlighted Sarawak’s progress in next-generation semiconductor development through SMD and a research centre in Cardiff, United Kingdom, including the development of an AI-powered chip that is currently awaiting intellectual property approval.

“The chip has potential applications in the healthcare, automotive and aerospace sectors. That is why we are focusing on aerospace, and our universities have established cooperation with Istanbul Technical College, Turkiye.

“With these collaborations, we can also work with neighbouring countries in the semiconductor sector,” he said.

Accompanying the Premier are State Secretary Datuk Amar Mohamad Abu Bakar Marzuki, Deputy State Secretary (Economic Planning and Development) Dato Sri Dr Muhammad Abdullah Zaidel, and other state government officials.