KUCHING – The Sarawak government has signalled its readiness to merge, restructure, privatise, or close state-owned enterprises (SOEs) that no longer provide value as part of a comprehensive review of the state’s investment portfolio.
Premier of Sarawak Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg announced the move during the Sarawak SOEs Transformation Programme at the Riverside Majestic Hotel.
He explained that the review is intended to ensure public resources are used effectively and that SOEs remain relevant in an increasingly competitive environment.
“I have directed the State Financial Secretary’s Office to undertake a comprehensive review of Sarawak’s SOEs and broader state investment portfolios.
This exercise will assess whether each SOE remains fit for purpose, whether it is performing effectively, and whether it can sustain itself financially,” he said.
The Premier noted that duplication, fragmentation, and inefficiencies have been identified within parts of the SOE ecosystem.
Some entities, he added, may have outlived their original purpose, while others operate in overlapping sectors that could benefit from consolidation.
“Where necessary, some entities may be merged and consolidated, some restructured, some privatised, and those that have fulfilled their purpose may be closed. These decisions will not be driven by sentiment but by what best serves the long-term interests of Sarawak,” he stressed.
Abang Johari clarified that the exercise is not aimed at reducing the state’s role in the economy but rather at strengthening organisations to ensure they are sustainable and capable of delivering greater value.
“This exercise is not about scaling down. It is about growing smarter and building stronger, more capable and more sustainable SOEs that can create greater value for the people of Sarawak,” he said.
He emphasised that every asset, investment, and state-owned company must contribute meaningfully to Sarawak’s long-term economic development.
The review is expected to align with the state’s broader Post-COVID Development Strategy 2030, which focuses on resilience, diversification, and sustainable growth.
Observers note that Sarawak’s approach mirrors global trends, where governments are increasingly reassessing state-owned enterprises to ensure efficiency and accountability.
By considering mergers, privatisation, or closures, Sarawak aims to streamline its portfolio and strengthen its fiscal position, while ensuring that public funds are channelled into ventures that deliver tangible benefits to communities.
The Premier’s announcement underscores the state’s determination to modernise its economic structures, ensuring that SOEs evolve into organisations that are financially viable, strategically relevant, and capable of supporting Sarawak’s development ambitions.
