Kuching: The Sarawak state government is taking steps to consolidate and reassess its assets to sustain economic growth and revenue in light of current global economic uncertainties, said Premier Tan Sri Abang Johari Tun Openg. He noted that this move comes as a response to shifting global trade dynamics, which have indirectly impacted Sarawak despite its limited reliance on the American market for exports.

According to BERNAMA News Agency, the Premier highlighted that recent tariffs introduced by the United States have affected the state. Although Sarawak’s major exports, such as gas and energy, are primarily directed to South Korea and Japan, and palm oil to China, India, and Europe, global developments continue to influence the state. He pointed out that the price of crude oil has dropped to $65.14 per barrel, whereas the state’s budget was based on a forecast of $85 to $90 per barrel. This discrepancy is expected to reduce revenue by at least $20 per barrel, creating uncertainty for the state’s financial outlook through the rest of the year and into 2026.

Addressing a gathering organized by the Sarawak Financial Secretary Office, Abang Johari emphasized the necessity for Sarawak to adjust its economic policies to maintain fiscal stability and meet financial commitments. He stated that the state is in the process of consolidating its assets to determine their actual value and explore innovative ways to enhance their value, particularly in response to global and regional economic developments within ASEAN.

He further stressed that Sarawak cannot continue to rely solely on oil and gas revenues and must diversify its economic base through innovation and technology. The Premier mentioned that the state is identifying strengths within its asset base and exploring optimal management strategies to deliver positive economic outcomes, which are crucial for navigating global economic changes and ensuring sustainable growth.