Abang Johari during the forum with moderator Sayed Munawar Sayed Mustar. – Photo by Chimon Upon
KUCHING (Dec 17): Sarawak must be bold and self-reliant to break free from the middle-income trap and emerge as a leading economic player in the region, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
While innovation and independence are critical, he stressed that the state should chart its own development path rather than relying entirely on others, with a clear regional outlook.
“I want Sarawak to be a star not only within Malaysia, but a star in Asean because we are now producing and sharing power with Asean countries.
“To me, we have to innovate but at the same time, we cannot rely on other people 100 per cent. We must be on our own,” he said at a forum session on the 2026 Sarawak Budget Aspiration: Empowering Future of Sarawak at the Sarawak Budget Conference held at Borneo Convention Centre Kuching (BCCK).
Abang Johari said 2026 will mark the starting point for developing the right workforce to support the state’s new economy, in line with its strategy to avoid the middle-income trap that has ensnared many developing countries.
He said the economy can no longer operate on a business-as-usual basis, as such an approach fails to create new value and ultimately constrains long-term growth.
“In other words, 2026 is the beginning of our efforts to train the right people for our new economy.
“That is why many developing countries are trapped in the middle-income trap — because they do not create something new.
“What is happening in Sarawak now is that we are using the resources we have to create something new,” he said.
One of Sarawak’s key focus areas is the hydrogen economy, positioning the state at the forefront of the clean energy transition, including at the international level.
In addition, he said water is expected to become a strategic commodity over the next five to 10 years, driven by the rapid growth of artificial intelligence (AI) technology.
“People are now depending on AI. AI involves data collection, and data is stored in data centres. Data centres require energy and water, so within the next five to 10 years, I believe water will become another important commodity.
“It will be a tradable commodity. If that is the case, we have so many rivers… other countries share rivers such as Egypt, Kenya and Sudan which share the River Nile,” he said.
As such, he said Sarawak’s advantage of having many rivers, including the Samarahan, Baram and Rajang rivers, should be leveraged through the production of treated water for export purposes.
“That is the direction I am aiming for. This forms part of the strategy we will adopt for the new economy so that we do not become trapped in the middle-income bracket,” he said.
However, Abang Johari emphasized that natural resources alone are not enough without quality human capital.
To this end, the Sarawak government is prioritizing education, including providing free tertiary education to eligible Sarawakians, particularly in new and emerging technologies.
He added that 64 selected programmes are being offered free of charge, most of which are in the fields of Science, Technology, Engineering and Mathematics (STEM), to meet the needs of a high-income economy.
“First, we are providing free education for selected programmes that are more focused on the needs of the new economy. We have selected 64 programmes, and most of them are in STEM disciplines because we need a skilled workforce.
“This is because our new economy will operate at a high-income level and requires people with specific skills,” he said.
The Premier also highlighted Sarawak’s strategic push into new growth areas, including the development of the Kuching Low Carbon Hub, a new offshore port, and a new airport, as part of broader efforts to strengthen the state’s competitiveness and connectivity.
He noted that Sarawak’s location places it within a three- to four-hour flight radius of Asean and East Asia, providing access to a market of more than three billion people, including China, East Asia, and India.
“If you have resources as the basic ingredient in any economy that is power, water and human resource, then you can participate in the development of this part of the region in our economic development.
“That is why though it’s ambitious, sometimes you have to be ambitious. If not, you will be in the second or third feeder all the time.
“That’s where we are trapped, which they call the middle-income trap. We must be in the front and once we are there, we work hard,” he said.
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