Sarawak targets high-value industries under nine Budget 2027 thrusts

SARAWAK is targeting digital technology, renewable energy and advanced manufacturing as growth sectors under nine Budget 2027 strategic thrusts.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the thrusts would guide efforts to diversify the state’s economy, attract investment and strengthen its workforce.

He said the first thrust would focus on transforming and diversifying Sarawak’s economy by developing higher-value industries and broadening its economic base.

“We will climb the value chains, foster high-value sectors, and broaden the economic base to reduce dependence on a narrow set of commodities to avoid the ‘middle income’ trap,” he said when presenting Budget 2027 on Monday (Oct 12).

He said that the second thrust would promote investment and strategic industries by creating a regulatory and fiscal environment to attract domestic and foreign capital into priority sectors.

He added that the third thrust would focus on building high-quality education and human capital through investments in skills development, vocational training and lifelong learning.

“These efforts would prepare Sarawak’s workforce for the digital, advanced and green economy.”

The fourth thrust, he said, would concentrate on protecting and sustaining the state’s natural resources through environmental stewardship and sustainable resource management, balancing economic growth with conservation.

Meanwhile, the fifth thrust, he shared, would seek to bridge development gaps and drive rural growth by narrowing infrastructure and opportunity disparities between urban and rural areas.

“The aim was to ensure more inclusive and balanced development across Sarawak.”

Under the sixth thrust, the state government would strengthen social protection, welfare assistance and targeted support for vulnerable households to safeguard livelihoods, preserve dignity and promote economic empowerment.

“Culture, sports and youth development would form the seventh thrust, with emphasis on nurturing social cohesion, talent development and youth engagement as part of Sarawak’s long-term social capital.”

The eighth thrust, Abang Johari said, would focus on research, technology and innovation, including accelerating research and development, encouraging commercialisation and advancing technology adoption to improve productivity.

“These efforts would also support the creation of high-value jobs and strengthen Sarawak’s competitiveness.”

The ninth thrust would focus on institutionalising high-performance government and fiscal resilience through improvements in public administration and financial management.

“We will modernise public institutions, enhance service delivery, and embed performance-based budgeting and transparency, ensuring good governance and resilient fiscal management,” he said.

Collectively, he said the nine thrusts would accelerate Sarawak’s economic transformation by advancing higher-value industries and diversifying beyond traditional sectors.

“The measures would also encourage private investment through innovation and strategic partnerships while expanding employment opportunities and strengthening human capital.

“They are intended to develop a more competitive and adaptable workforce while supporting Sarawak’s long-term prosperity through sustainable and inclusive development.”