Sarawak SOEs could generate additional RM9.62 bln revenue by 2030, says Premier

KUCHING (Sept 22): Sarawak's state-owned enterprises (SOEs) could potentially generate an extra RM9.62 billion in revenue by 2030, according to Premier Datuk Patinggi Abang Johari Tun Openg. These initiatives, outlined in Phase 2 of the SOEs Transformation Programme, could also lead to RM1.6 billion in adjusted profit after tax and RM1.27 billion in dividends between 2027 and 2030.

Premier Abang Johari emphasized that these projections, while not guarantees, could be realized if the initiatives translate into tangible results. He stressed that the transformation should not rely solely on a few large SOEs, but rather on all entities improving from their initial positions. Whether it's a RM5 million boost for one entity or RM500 million for another, each improvement is significant, depending on the entity's mandate, capability, and starting point.

SOEs should explore new revenue streams, reduce costs, unlock asset value, and venture into new markets. Financial self-reliance does not mean every state entity must operate identically, as some have specific regulatory, social, public-service, or strategic mandates requiring government support. However, this support must come with clear mandates, measurable outcomes, and financial discipline.

The Phase 2 assessment projects a 121.9% increase in grant dependency, largely due to increased government support for education, human capital development, public functions, and environmental protection. While excessive dependency should be reduced, necessary government funding for important public purposes, like education, should not create long-term dependence.