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Sarawak premier presents biggest-ever state budget

KUCHING: Premier Tan Sri Abang Johari Openg today presented the biggest-ever state budget, with a projected revenue of RM14.2 billion and a total ordinary expenditure of RM13.7 billion for 2025.

He said the 2025 state budget was expected to generate a surplus of RM486 million.

"The 2025 state budget indeed marks the largest budget in Sarawak's history, reflecting the success of our revenue reengineering strategies and prudent financial management," he said when tabling the state budget in the Sarawak Legislative Assembly here.

"Through this expansionary budget, we are making substantial investments in infrastructure while placing the wellbeing of the people at the forefront of our priorities," he said.

Abang Johari said the 2025 state budget provides an allocation of RM10.9 billion to fund development expenditures in the state, adding that this was the biggest development budget in Sarawak's history.

He said the state budget will continue to provide allocations to key sectors to accelerate economic development and eventually make the state economy strong, robust and resilient.

Abang Johari said of the RM13.7 billion allocated for ordinary expenditure, RM4.9 billion was for operating expenditure and RM8.8 billion was for appropriation to the development fund account.

He said this appropriation was to top up the brought-forward balance in the development fund account to finance next year's development expenditure budgeted at RM10.9 billion.

"The operating expenditure of RM4.9 billion is allocated personnel emoluments (RM1.2 billion or 24 per cent), supplies and services (RM1.9 billion or 39 per cent)," he said when tabling the 2025 state budget in the Sarawak Legislative Assembly.

He said RM1.6 billion or 33 per cent was for grants and fixed payments, which include operating grants to statutory bodies and local authorities, servicing of public debts and payments of gratuities, pensions and scholarships, including financial and welfare assistance.

He added that RM96 million of the operating expenditure was for procurement of assets and RM113 million for other operating expenses. He said the 2025 state budget was centred towards achieving overarching goals such as building a prosperous and equitable society where no one will be left behind and enhancing the people's social well-being through people-centric initiatives.

He said it also aims to strengthen the government's capacity and capability to deliver quality services; enhance the state fiscal position towards financial sustainability; and transform Sarawak into a developed region and green hub.

"Guided by these goals, the 2025 state budget is framed across eight strategic thrusts aimed at steering the Sarawak economy towards becoming a robust, developed and resilient economy by 2030," he added.

He said the thrusts are to transform and diversify Sarawak's economy, position Sarawak as a major investment destination, promote SME development, strengthen talent and educational development and accelerate digital transformation and innovation.

He said the others are enhancing people's wellbeing and ensuring inclusive development, promoting culture, sports, and youth empowerment, enhancing environmental sustainability and strengthening public service delivery and capacity.

He said the 2025 state budget proposal, with the theme "Together Building a Prosperous Future", would serve as the foundation of the fiscal strategy and embody the steadfast commitment to the people of Sarawak.

He said it was a budget designed for an inclusive and prosperous Sarawak — where every rakyat has equitable access to opportunities and resources to thrive.

He said the budget had been meticulously assessed and formulated to ensure the state remains resilient, competitive, and adaptable amid global uncertainties.

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