Sarawak’s bid to become Malaysia’s Bavaria: Abang Johari’s vision for economic growth
15 Sep 2024
Drawing a parallel between Sarawak and Bavaria in Germany, Premier Tan Sri Abang Johari Tun Openg is spearheading bold initiatives to transform the state into a major economic force in Malaysia.
In an interview with CNA, he stated: “Germany is a federation, but Bavaria is strong. So, in this particular case, because of our advantage in terms of our economic strength, we can be equated to be like what Bavaria is to Germany.”
Sarawak, with its abundant oil and gas reserves, is making significant strides toward self-sufficiency, CNA reports.
The state has recently reclaimed Bintulu Port from the Federal government, acquired regional airline MASwings from Malaysia Airlines, and is on the brink of taking a controlling interest in Affin Bank.
These strategic moves are part of the Premier’s broader vision to advance Sarawak’s economic and financial landscape.
According to Abang Johari in the August interview, these developments not only position Sarawak for future growth but also empower it to better serve its people.
Following the historic defeat of Barisan Nasional (BN) in the 2018 General Election, four of the state’s parties exited the coalition and formed the Gabungan Parti Sarawak (GPS), led by Abang Johari. This move has propelled Sarawak into a period of rapid advancement.
With GPS holding a commanding supermajority in the Sarawak legislative assembly, the stable political climate has enabled Abang Johari to focus on major infrastructure projects aimed at attracting further investment to the state.
The Premier stated that Sarawak’s revenue for 2024 is expected to exceed the RM13.3 billion collected last year.
The state has established its own sovereign wealth fund and is planning to construct a new international airport in Kuching to enhance connectivity.
Sarawak is also making moves to solidify its status as one of Malaysia’s most significant states, currently negotiating with national oil company Petronas to regain its right as the sole buyer and seller of natural gas produced within the state.
This step could have substantial financial implications for the Federal government and reflects its broader push for increased autonomy within Malaysia.
Looking ahead, Abang Johari aims for Sarawak to become the second-largest contributor to Malaysia’s GDP by the next state elections, scheduled for 2026.
Data from Malaysia’s Statistics Department released in July shows that Sarawak contributed 9.1 percent to the GDP in 2023, ranking fourth after Selangor (25.9 percent), the Federal Territory of Kuala Lumpur (15.9 percent), and Johor (9.5 percent).
The Premier noted that Sarawak is aiming to follow the example of nations that have heavily invested in infrastructure to drive economic growth.
“What Sarawak is doing now is to enhance our infrastructure, because we’ve got the strength, including energy, and we build our internal domestic connectivity.
“We are getting investment to Sarawak, and the benefits will be shared with the investors as well as the Sarawak government or, for that matter, Sarawak as a whole,” he said.
Abang Johari emphasised that Sarawak’s rapid development and ambitious goals should not be interpreted as a push for independence.
He dismissed the calls from some activists who are advocating for Sarawak to leave Malaysia due to frustrations with what they view as insufficient progress by the Federal government in restoring Sarawak’s rights under the Malaysia Agreement 1963. This agreement established Malaysia with Sarawak and Sabah as equal partners alongside Malaya.
“Of course, the Federal government also acknowledged how we governed the state and how we moved forward. It doesn’t mean that there is an urge for us — some (have this) perception — (to go) on our own,” Abang Johari was quoted as saying.
Education combats poverty
In December 2023, Abang Johari announced that free tertiary education at state-owned universities will be available to Sarawakians starting in 2026. This initiative, first proposed by Abang Johari as part of his birthday wish in August 2022, aims to address educational barriers for Sarawak’s youth.
“For any country to develop, you need quality human resources, and that is where I think with good education behind them, you can get people out of poverty,” he told CNA.
“If you don’t have that ability to provide the (tuition) fees to them… that is a loss to the country. So, since we have the means, why not we share with them?” he said.
He believes this approach will not only help lift people out of poverty but also strengthen the economy in the long run.
“That will be an approach for us to get people out of poverty, and that will also strengthen our economy in the long run,” he added.
This initiative applies to five state-owned universities, namely, Curtin University Malaysia Sarawak Campus, Swinburne University of Technology Sarawak Campus, University Technology Sarawak, Centre of Technology Excellence Sarawak, and i-CATS University College.
CNA said local media have reported that around 25,000 students across these state-owned universities and higher education institutions could benefit from this new policy, which is projected to cost the government up to RM625 million annually.
However, the Sarawak government has stated that the free education initiative will be limited to specific science and technical fields.
This decision aligns with the state’s development goals and aims to make the most efficient use of resources.
Abang Johari suggested to CNA that the subsidised programmes may focus on areas such as aerospace, semiconductor technology, and green energy, which are essential for supplying skilled professionals to industries that drive economic growth.
He added that Sarawak is working with the United States and the United Kingdom to bring in capable instructors in this field.
“Even the (area of) renewable hydrogen energy is new, so we need a lot of people who are knowledgeable in this new economy, because we are focusing on the green economy,” he said.
Going green
Further to this, the Premier informed CNA that Sarawak has achieved carbon-negative status thanks to its power generation mix of 70 percent hydro and 30 percent gas. This accomplishment positions the state to provide renewable energy to the region.
Sarawak intends to install floating solar panels on its four dams, which could potentially generate 15 gigawatts of renewable energy by 2035 — far exceeding local demand.
Abang Johari also mentioned that Sarawak has been supplying power to Indonesia’s West Kalimantan for the past five years and is planning to extend this supply to Sabah, Brunei, and Singapore. This positions Sarawak as a key player in a potential South-east Asian electricity grid.
According to a May report by Bernama, the Sarawak-Singapore electricity supply interconnection project is slated to begin commercial operations by 2031, as stated by Sarawak’s Utilities and Telecommunications Minister Julaihi Narawi. He noted that the project is currently in the technical research phase, which includes surveying the route for the undersea cables. The initiative aims to export up to 1 gigawatt of renewable energy from Sarawak to Singapore.
In exchange, Sarawak has proposed that Singapore invest in projects such as data centres within the state. Abang Johari also revealed to CNA that Singapore will be responsible for laying the undersea cables connecting Kuching to the island nation.
Singapore’s Energy Market Authority informed CNA that it has not yet granted conditional approval for the electricity import plan from Sarawak and cannot provide further details due to commercial sensitivities.
The authority is currently in discussions with “relevant parties” and will keep engaging with companies that present “credible and commercially viable” proposals to support Singapore’s decarbonisation goals, according to a spokesperson.
CNA has also contacted Singapore’s Sembcorp Industries, which is spearheading the negotiations with Sarawak Energy Berhad, for the latest updates on the project, including information about the undersea cables.
“We have a good trading relationship between Singapore and our side. We are working closely with the Singapore government as well as the Singapore private sector, which will enhance the economic collaboration between Singapore and Sarawak,” the Premier said.
Powering Kalimantan
Abang Johari stated that Sarawak aims to extend its power supply to the entire Kalimantan region, including East Kalimantan where Indonesia’s new capital, Nusantara, is being developed.
Sarawak already holds a 25 percent stake in a hydroelectric plant in East Kalimantan, which is essential for powering the area. Abang Johari added that Sarawak is collaborating with Indonesia to explore further economic opportunities.
“We are also planning to have a newer international airport in Kuching that will complement what we can do for Borneo,” he noted, emphasising that Nusantara is just a 30-minute flight from Kuching.
“As far as our relationship with Indonesia goes, with West Kalimantan particularly and the rest of Kalimantan, there is a common platform between Indonesia and our side, and it’s doing quite well,” he concluded.
Source: Malay Mail
