Premier: Sarawak diversifies beyond petroleum with export-driven industries, green economy

KUCHING (Dec 17): Sarawak is expanding its revenue streams beyond petroleum by promoting export-driven industries and advancing its transition to a green economy, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He explained that the state is reducing its reliance on gas by attracting foreign investment in new export-oriented industries, which will generate revenue through sales taxes once exports begin.

“We don’t depend on gas alone. What we do is diversify our economy, get the foreign investors to come in, and start new industries that are export-oriented.

“Once they export, you charge a five per cent sales tax, similar to gas,” he said at a forum session on the 2026 Sarawak Budget Aspiration: Empowering Future of Sarawak at the Sarawak Budget Conference held at Borneo Convention Centre Kuching (BCCK).

Abang Johari highlighted hydrogen as a key growth sector, noting ongoing collaborations with Japanese and Korean partners as part of Sarawak’s renewable energy strategy.

“The moment we produce hydrogen and export it, you can also impose a certain tax structure — an export tax on hydrogen. That is additional revenue,” he said.

He also highlighted water as a potential future commodity, especially given the rapid growth of artificial intelligence (AI) and semiconductor industries, which demand significant water and energy resources.

Abang Johari said such industries cannot be curtailed despite their heavy resource use, and stressed the need to manage supply for both consumers and industry.

“Power is meant for consumers as well as for industry, but industry has to pay more because the consumption is higher,” he said, adding that the same principle applies to water usage.

He emphasised that Sarawak’s approach follows basic economic principles, where demand drives value and sustainable revenue.

“If there is demand, then there is value to that commodity. If there is no demand, there is no value. It’s a simple economy,” he said.

Abang Johari export green economy lead petroleum revenue stream