SARAWAK TO CONSOLIDATE ASSETS AMID GLOBAL ECONOMIC UNCERTAINTY -- ABANG JOHARI

KUCHING, April 16 (Bernama) -- The Sarawak state government is taking steps to consolidate and reassess its assets to sustain economic growth and revenue in light of current global economic uncertainties, said Premier Tan Sri Abang Johari Tun Openg.

He said the move comes in response to shifting global trade dynamics, including the recent introduction of tariffs by the United States, which has indirectly impacted Sarawak despite the state not relying heavily on the American market for its exports.

“Although our major exports, such as gas and energy are mainly to South Korea and Japan and palm oil to China, India and Europe, global developments still affect us.

“For example, the price of crude oil has dropped to US$65.14 per barrel, while our budget was based on a forecast of US$85 to US$90 per barrel," he said.

"This means our revenue will be reduced by at least US$20 per barrel. This creates uncertainty as we look ahead to the rest of the year and into 2026," he said at a Hari Raya Aidilfitri gathering organised by Sarawak Financial Secretary Office here tonight.

Abang Johari said the state will need to adjust its economic policies to maintain fiscal stability and meet its financial commitments.

"As such, we are in the process of consolidating Sarawak’s assets to determine their actual value. For strategic assets, we are looking into ways to innovate and enhance their value in response to global and regional economic developments, particularly within ASEAN," he said.

He emphasised that Sarawak cannot continue to rely solely on oil and gas revenues and must diversify its economic base through innovation and the use of technology.

“We are identifying strengths in our asset base and exploring how best to manage them in order to deliver positive economic results for the state. This is essential if we are to navigate the changes in the global economy and secure sustainable growth,” he added.

-- BERNAMA