KUCHING – Sarawak’s ongoing transformation of State-Owned Enterprises (SOEs) is projected to deliver significant financial benefits, with operating grant requirements expected to fall by approximately RM403 million by 2030.
The savings are anticipated to be redirected towards infrastructure upgrades, education facilities, and rural development initiatives across the state.
Premier of Sarawak Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg highlighted the reforms during the launch of the Sarawak SOEs Transformation Programme at the Riverside Majestic Hotel.
He explained that the initiative is designed to strengthen financial sustainability, reduce reliance on government support, and enhance overall performance among statutory bodies and government-linked companies.
“RM403 million. That is money that can be redirected to rural road upgrades, to school repairs, and to infrastructure development that opens up economic opportunities in every corner of Sarawak,” he said.
A financial self-reliance study conducted on 36 entities revealed that government grants currently make up nearly one-third of statutory bodies’ total income, while about 44 per cent of their operating expenditure is funded through public resources.
The Premier stressed that this reliance is not only a financial matter but also one of accountability, noting that taxpayers expect responsible stewardship of funds.
“Nearly half of the cost of operating some of these entities continues to be funded by public resources. This is not merely a financial issue. It is a question of stewardship and accountability.
The resources entrusted to these entities come from the hard work of taxpayers, businesses, and ordinary Sarawakians who expect us to manage public funds responsibly and deliver meaningful outcomes,” he added.
The transformation programme is expected to reduce outstanding government loan balances to around RM1.7 billion by 2030 through improved financial performance and restructuring measures.
At the same time, dividend contributions from commercial government-linked companies are forecast to more than double as profitability strengthens.
Abang Johari emphasised that these outcomes would not only improve the fiscal position of the state but also create greater capacity to invest in future priorities.
He said stronger SOEs would ultimately generate more value for Sarawak and its people, ensuring that public resources are channelled into projects that directly benefit communities.
The reforms form part of Sarawak’s broader Post-COVID Development Strategy 2030, which aims to build resilience, diversify the economy, and promote sustainable growth.
Analysts note that the focus on financial independence among SOEs aligns with global best practices, where governments encourage statutory bodies to operate with greater efficiency and accountability.
By reducing dependency on grants and loans, Sarawak’s SOEs are expected to become more competitive and self-reliant, contributing to long-term economic stability.
The Premier’s announcement underscores the state’s commitment to ensuring that public funds are managed prudently while maximising returns for development and community welfare.
