KUCHING – Sarawak must transition towards a high-value economy to avoid the middle-income trap faced by many developing nations, Premier Datuk Patinggi Tan Sri (Dr) Abang Abdul Rahman Zohari Tun Datuk Abang Openg said.
Speaking at the 2026 Sarawak Budget Conference at the Borneo Convention Centre Kuching (BCCK), the Premier stressed that the state can no longer operate “business as usual” and must think beyond conventional approaches.
He emphasised that Sarawak’s future lies in producing high-value products that create demand from other countries.
“2026 marks the starting point for us to train the right talents and human resources for our new economy, because we can no longer operate as we have before,” he said. “This is why so many developing countries get stuck in what is known as the ‘middle-income trap’. They fail to create something new. Therefore, Sarawak’s next step is to utilise existing resources to create something new that adds value.”
Abang Johari explained that Sarawak is positioning water as a new commodity, citing the growing global reliance on artificial intelligence (AI) and data centres.
“Data is stored in data centres, and data centres require energy and water. Therefore, over the next five to ten years, I believe water will emerge as another highly important commodity. In such a scenario, water will become a tradable commodity, and if that becomes reality, Sarawak has a major advantage because we have so many rivers,” he said.
The Premier noted that this initiative could generate new revenue streams for Sarawak while reducing dependence on oil and gas. By diversifying its economy, Sarawak aims to strengthen resilience and ensure long-term prosperity.
He also highlighted the importance of nurturing talent and innovation to support the state’s economic transformation.
The Premier urged Sarawakians to embrace ambition and creativity, warning that complacency would hinder progress.
The forum was attended by prominent figures including former Deputy Chief Ministers Datuk Patinggi Tan Sri Dr George Chan Hong Nam and 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 Public Service Leadership Institute, and Dato (Dr) Salihin Abang, founder and managing partner of Salihin Group Management.
The Premier’s remarks underline Sarawak’s ambition to move beyond a resource-dependent economy, positioning itself as a competitive player in the global market through innovation, talent development and strategic use of natural resources.
