SARAWAK PROJECTS UP TO 6 PCT ECONOMIC GROWTH IN 2024 -- ABANG JOHARI

KUCHING, Nov 11 (Bernama) -- Sarawak is projected to experience resilient economic growth of five to six per cent in 2024 due to strong external demand, increased domestic activities and easing inflationary pressures.

Sarawak Premier Tan Sri Abang Johari Tun Openg said the services sector is anticipated to grow by 6.7 per cent to become a major growth driver, and this is largely attributed to the tourism sector, which saw a 21.4 per cent increase in business and leisure arrivals from January to September 2024.

“Expansion in trade activities, particularly in transport, logistics, financial services, and insurance, also highlights Sarawak’s efforts to strengthen its economic base,” he said when tabling the Sarawak 2025 Budget at the State Assembly here, today.

The Sarawak premier said the mining sector is set for a recovery with growth projected at 2.3 per cent, driven by rising natural gas production, including new projects like the Jerun and Kasawari gas fields, which is also expected to have a positive impact on the manufacturing sector.

“Liquefied natural gas (LNG) production is projected to rise, propelled by demand from key trading partners such as Japan and China, pushing the manufacturing sector to a 5.2 per cent growth rate,” he said.

Regarding the agriculture sector, Abang Johari said Sarawak’s crude palm oil (CPO) production showed a 1.7 per cent increase in output in the first nine months of 2024, fueled by strong demand from India and China, and projected to continue on an upward trajectory, contributing to an estimated two per cent growth.

“Construction remained as one of Sarawak’s most robust sectors with a growth projection of 8.7 per cent. This surge, supported by a 26.6 per cent increase in construction value in the first half of 2024, underscores the sector’s critical role in the state’s socio-economic development,” he said.

On the demand side, trade activities have bolstered Sarawak’s economic resilience, with total trade volume increasing by 5.4 per cent to RM115.6 billion in the first seven months of 2024, as exports saw a 6.6 per cent rise, supported by LNG and crude petroleum exports, while imports grew by 3.5 per cent. 

Abang Johari said investment remains a priority in Sarawak’s economic strategy, with RM6.84 billion in private investments recorded in the first half of 2024, primarily in manufacturing, electrical and electronics, and basic metal industries.

“Public investment is projected to grow by six per cent, supported by RM9 billion in state allocations and RM5.8 billion in federal funding, focusing on connectivity and infrastructure improvements,” he said.

Abang Johari said the salary revision for civil servants, which takes effect this December, is expected to increase public consumption as private consumption is expected to grow by 5.1 per cent, supported by favourable labour market conditions, financial aid, and stable inflation.

“Looking ahead, Sarawak’s economy is expected to maintain its growth trajectory into 2025, with a similar five to six per cent growth projection. This outlook reflects Sarawak’s commitment to fostering economic diversity and adaptability in the face of global economic dynamics,” he added.

-- BERNAMA