KUCHING – Sarawak will implement a performance-based model for its State-Owned Enterprises (SOEs), ensuring that these companies operate efficiently, competitively and with commercial discipline.
Premier of Sarawak, Datuk Patinggi Tan Sri (Dr) Abang Abdul Rahman Zohari Tun Datuk Abang Openg, announced the move during the 2026 Sarawak Budget Conference at the Borneo Convention Centre Kuching (BCCK).
He explained that SOEs will remain wholly owned by the state through shareholding but will be managed independently on a commercial basis.
“They are not subject to General Orders where good performance earns rewards and poor performance is excused. If you do not provide dividends to shareholders and operate inefficiently, your service can be terminated,” he said, stressing accountability and results-driven management.
The Premier added that the model would allow company management to be self-reliant without depending on government budget allocations, thereby increasing Sarawak’s asset value.
He noted that several government-linked companies (GLCs), including Petroleum Sarawak Berhad (PETROS) and Sarawak Energy Berhad (SEB), are already operating independently. Sarawak’s ports are expected to follow suit once the Bintulu Port acquisition is completed.
This approach, he said, will enable the public service to become leaner, while SOEs under the new framework will operate with greater efficiency and independence.
“This will open opportunities for professionals to manage and lead Sarawak-owned companies, but performance will be the sole criterion,” he added.
Abang Johari highlighted that the model mirrors practices in countries such as Singapore, Germany and the Nordic nations, where SOEs are managed commercially and rewarded based on results.
He emphasised that Sarawak must adopt similar standards to remain competitive in the global economy.
The Premier’s remarks underline Sarawak’s ambition to modernise its economic structure, ensuring that state-owned companies contribute dividends and value to the state while reducing reliance on government funding.
The forum was attended by several distinguished figures, including Datuk Patinggi Tan Sri Dr George Chan Hong Nam, Datuk Patinggi Tan Sri (Dr) Alfred Jabu Numpang, Minister in the Sarawak Premier’s Department Dato Sri John Sikie Tayai, Sarawak Secretary Datuk Amar Mohamad Abu Bakar Marzuki, Deputy Ministers, Datu Dr Azhar Ahmad, CEO of the Sarawak Civil Service Leadership Institute, and Dato (Dr) Salihin Abang, founder and managing partner of Salihin Group Management.
The performance-based SOE model is expected to strengthen Sarawak’s economic resilience, attract professional talent, and enhance the competitiveness of state-owned companies in both regional and international markets.
