By Gabungan Parti Sarawak (GPS) has actively transformed its economy and various financial resources to increase the state’s income.
As such, it had successfully boosted the development of the state.
According to Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, the new economy has made Sarawak manage to collect and increase double-digit income this year.
“This is good news that we should all be thankful for. We have an income of over RM10 billion a year. No other state in Malaysia can do that,” he said during the launching of the 15th General Election (GE15) manifesto.
A GEM AMIDST CHALLENGING TIMES
When the world was attacked by the COVID-19 virus, every business had come to halt which led to the economy in every country to deteriorate.
Despite the challenging times, Abang Johari saw an opportunity out of it, hence, he unveiled the Post-COVID-19 Development Strategy 2030 (PCDS 2030).
According to him, Sarawak will be a developed and a high income state following the implementation of PCDS 2030.
For that, he had reorganised the Sarawak Cabinet after the recent 12th state election to strengthen the state government’s service delivery as well as to remain focused on achieving the PCDS 2030 objectives.
FORMULA USED TO STRENGTHEN THE ECONOMY
Abang Johari said that the state government takes into account its financial outcome and how it can get substantial revenue for Sarawak to generate funds to develop the state.
“I see in the constitution under article 95(b)(3), it is mentioned that Sarawak has the authority to implement sales tax.
“And we have issued LNG and commodity exports based on oil. So why can’t we impose sales tax?
“That is why in 2018, I imposed sales tax on Petronas. At that time, Petronas said ‘yes’ (to the imposition of the tax) because their authority is PDA but I said ‘no, this is state authority’.
“After a certain time, I took Petronas to court and in court they made a ruling in our favor, hence, we have the right to O&G tax revenue,” he said.
In light of this, he said that Sarawak has strengthened its income through the O&G.
SARAWAK SHIFTING TO GREEN ECONOMY
After the pandemic, the world did not ‘rest’ as it is now facing the climate crisis and global warming.
Seeing this, Sarawak has taken certain steps to mitigate the issue and work towards a green economy.
As the State is rich with resources, Sarawak is eyeing hydrogen as one of its new primary socio-economic resources as part of the government’s adoption of renewable energy as a cornerstone for the PCDS 2030 master plan.
This is because, as Abang Johari said, one of Sarawak’s strengths was in energy.
“We need to optimise our resources. This is why we have amended our land code to ensure our geological structure becomes our strength in the new economy, which is based on mitigating carbon (emissions) and green economy.
“We have water to produce hydro and hydrogen; water bodies to float solar (panels); water with sunlight to cultivate algae which can produce biofuel. In other words, for all spectrums of energy, Sarawak has the resources and the only thing is how to innovate it and bring about change to our economy.
“With technology, we will be able to add value to our resources as it is in the PCDS2030,” he said.
While emphasising the need to protect the environment, he advocated the green economy which will generate the state’s economic activities.
Now, the world recognises Sarawak as a place producing hydrogen and contributing to clean energy for the world.
When he was invited as the keynote speaker for the World Hydrogen 2022 Summit and Exhibition at the city of Rotterdam in the Netherlands, he said, “If we all could work towards accelerating the hydrogen markets in a coordinated way, it would help spur investments in integrated facilities and infrastructure set to bring down costs and enable the sharing of knowledge and best practices.”
As such, Deputy Minister of Utility and Telecommunication Datuk Dr Abdul Rahman Junaidi stated that with Sarawak being regarded as one of the first states in the Asia Pacific region to tap on the hydrogen market on a large scale, the potential for Sarawak as ‘a rising star’ in the renewable energy arena is limitless.
“This may just mark the beginning of a green investment of the low carbon industry serviced by Sarawak supply chains.
“Moreover, Sarawak would gradually shift its reliance on ‘traditional fuels’ such as fossil fuels, to green energies like hydrogen, in promoting the state as a place for green investments.
“This, however, would be a step-by-step implementation as the government would slowly introduce the concept of renewable energy to the public, in line with the development and growth alongside PCDS 2030,” he said.
Following Abang Johari’s trip to Rotterdam, he was also invited to Tokyo and Singapore to talk on green energy.
“There are big companies and countries that see me, hear what I am doing and are interested in investing.
“I went to Korea the other day and they said that they want to invest in producing hydrogen together with us.
“I assure you that by 2027, Sarawak will produce 100,000 tonnes of hydrogen. And it is already bought back by Korea,” he said in a TVS’ Bicara Hati Rakyat Bersama Abang Johari on Saturday (Nov 12).
SOVEREIGN FUND
Abang Johari stated that with the revenue obtained from this new economy, the state government is capable of generating two digits of billion ringgit revenue this year.
“I predict that by 2025, which is in three years, we will have a surplus. And to manage this and strengthen our finances, we need savings for the future. This is where the sovereign fund comes in.
“Looking at Singapore and Norway, they have high sovereign funds. That is why I study these two countries and join the forum on fund management in London.
“InsyaAllah after the sovereign fund bill is approved, Sarawak will be able to save its money for the future and will receive a big return from it,” he said, adding that the fund will be managed professionally.
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