By Gary Foong

In a statement on 14 Jan 2025, during a town hall session commemorating his 8th year as Premier, Sarawak’s Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg voiced his vision to transform Sarawak into the “Norway of the East”.

This bold ambition reflects his commitment to steering Sarawak towards a future of continuous growth, sustainability, and innovation.

Under his leadership, Sarawak has made impressive strides in developing a dynamic economy while preserving its rich cultural heritage and natural beauty. https://www.tvsarawak.my/2025/01/14/sarawak-aspires-to-be-the-norway-of-the-east-says-premier/

An expert in international trade and cross-border affairs, Gary Foong (pic), who served in the Singapore civil service during the 90s, shared his insights on the immense potential of Sarawak, highlighting its strategic geographic location and abundant resources.

In his time working closely for the governance and development of Singapore, Foong witnessed and learned first-hand the key elements that have propelled this small country to the forefront of global economic growth and innovation.

Singapore’s success is built on visionary leadership, strategic long-term planning, a robust legal and governance framework, investment in human capital, and a steadfast commitment to sustainable and inclusive development.

These foundational principles have not only propelled Singapore to thrive in an ever- evolving global landscape, but they have also laid a strong foundation for the nation's continued success.

He believes that many of these key factors can serve as guiding principles for Sarawak as it moves forward on its journey to become a leading regional economy.

In early 2023, Foong had the privilege of being invited to Bandar Kuching by a prominent Sarawak business entrepreneur to share his insights on the potential development of Miri Port.

However, Foong proposed Bintulu as a more strategic option, believing that Semakau is ideally positioned to evolve into a leading Regional Integrated Manufacturing Hub. With its existing strengths, infrastructure, and the potential to apply for a Free Zone, Sarawak can cement its role as a key player in regional trade, industry, and economic growth, especially in East Asia.

The proposed Free Zone could catalyse several important initiatives in attracting foreign investment, boosting trade, fostering industrial innovation, creating high-quality jobs, supporting regional economic integration, and the national GDP.

One of Sarawak’s key advantages, besides the strategic location, lies in its competitive energy tariffs and natural resources such as Liquefied Natural Gas (LNG), which is a significant requirement in various industrial production processes.

The advantages present a compelling incentive for major investors looking to capitalise on cost-effective energy and ready resources for industrial operations.

As logistics freight costs continue to rise globally, the shift from global to regional procurement and supply chain strategies is becoming increasingly evident. This trend will drive the establishment of regional production hubs in Sarawak, further enhancing its role in the regional supply chain in Asia.

With a combined population of over 2.2 billion across China, Hong Kong, Japan, Brunei, Taiwan, South Korea, Vietnam, Cambodia, Indonesia, and the Philippines, coupled with the benefits of the Regional Comprehensive Economic Partnership (RCEP) free trade agreement, Sarawak is uniquely positioned to emerge as the leading Regional Production Hub and Distribution Centre for East and Southeast Asia.

Foong opined that the global supply chain model, which Western powers have dominated for decades, is giving way to regionalised supply chains driven by Asia's economic growth and intra-regional trade.

On the domestic ground, the Pan Borneo Highway is a timely transformative development for East Malaysia, unlocking vast opportunities in logistics, connectivity, and economic growth. By enhancing the movement of goods, reducing transportation costs, and improving access, the highway will accelerate growth across multiple sectors.

It will also encourage domestic direct investment (DDI) in the development of secondary and supporting industries in key towns like Miri, Sibu, Sarikei and Kota Kinabalu. With Bintulu positioned as a central multi-modal logistics and heavy industrial hub, the highway is set to be a game-changer for the region.

By enhancing connectivity between Sarawak, Sabah, and Brunei and extending towards Kalimantan, including the upcoming new capital of Nusantara, the highway will create an integrated land bridge across the entire Borneo. This will boost trade, logistics, tourism, and industrial activities, driving significant economic growth and positioning Bintulu and its surrounding areas as a competitive hub in Southeast Asia.

In a related report on Feb 19 by Borneo online, datelined Kapit, Julau MP Datuk Larry Sng Wei Shien has highlighted Kapit's strategic position as the closest connection point for a proposed road linking Sarawak with Indonesia’s Kalimantan, offering direct access to the republic’s new capital, Nusantara.

“Located about 400 km from Nusantara and just across the Sarawak-Kalimantan border, Kapit has the potential to become a crucial gateway for cross-border connectivity,” Sng said.

He stressed that the proposed highway would not only facilitate smoother cross-border travel but also enhance trade activities, driving economic growth in border towns and making them more vibrant.

Currently, locals use the Jalan Kapit-Mujong-Putai-Tapak Megah route to reach Kalimantan. https://www.theborneopost.com/2025/02/19/kapit-proposed-as-key-gateway-for-sarawak-nusantara-road-link/

Foong also highlighted that Bintulu’s proximity to the Federal Territory of Labuan presents a unique opportunity to capitalise on offshore banking and financial services, offering businesses greater financial flexibility, investment opportunities, and various cost-saving advantages. This can significantly enhance the region’s appeal as a hub forindustry, trade, tourism, and offshore financial services.

While there are numerous promising prospects, Foong cautioned that Bintulu and Sarawak may encounter several significant challenges in establishing themselves as a preferred transhipment port and regional manufacturing hub.

These may include the bureaucratic establishment of an International Free Zone, the development cost and design of a modern container port infrastructure, improving and inviting shipping connectivity between Bintulu and other ports of East Asia (insufficient volume yet), and enhancing human resources development for international communication, particularly in marketing, and administration.

Also, in light of the recent floods, particularly in Bintulu, it is crucial for the state government, with support from the federal government, to develop a sustainable flood mitigation plan. The government can draw valuable lessons from the Netherlands, a country that has successfully managed to live below sea level for centuries.

Such a plan is essential not only to address the immediate concerns but also to restore investor confidence in establishing regional production hubs in Bintulu and across Sarawak.

On governance, Sarawak is well-positioned to align with international standards on “the ease of doing business”, particularly in international trade. This can be achieved by streamlining processes such as business registration, obtaining operating permits and licences, offering flexibility in employment, reducing import and export clearance times, minimising non-tariff barriers, providing tax incentives, advancing digitalisation, and enhancing regional competitiveness through AI-supported systems.

Foong’s perspective on the Sarawak Premier’s leadership of pragmatic, inclusive, and respectful of diverse cultures, with an open-minded and ambitious approach suggests that these goals are well within reach.

As of the available data, Malaysia ranked 12th globally in the World Bank's "Ease of Doing Business" index for 2020. This ranking reflects Malaysia's commitment to enhancing its business environment through regulatory reforms aimed at simplifying processes for investors and entrepreneurs.

https://blogs.worldbank.org/en/eastasiapacific/malaysia-doing-business-2020-pursuing-reforms- top?utm_source=chatgpt.com

https://data.worldbank.org/indicator/IC.BUS.EASE.XQ?locations=MY

Gary Foong, originally from Ipoh, began his career with the Singapore Civil Service in the early 90s and gained progressive training and development at the Civil Service Institute of Singapore, further honing his expertise in governance, border control, international trade, systems, work integration, and integrity management.