Abang Johari pointed out that inflation is expected to moderate further this year, with the average rate for the first nine months recorded at 0.9 per cent. – Bernama photo
KUCHING (Nov 24): Sarawak’s economic growth is projected between 5 per cent and 6 per cent next year, reflecting continued resilience amid global uncertainties.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said this outlook is underpinned by steady expansion across key sectors such as services, manufacturing and construction, alongside sustained investments in infrastructure and energy.
“Sarawak’s economic growth is projected to remain resilient in the face of evolving global conditions.
“This year, Sarawak’s economy is expected to grow by around 4.5-5 per cent, underpinned by increased domestic activities and easing inflationary pressures,” he said when tabling the Supply (2026) Bill 2025.
Abang Johari pointed out that inflation is expected to moderate further this year, with the average rate for the first nine months recorded at 0.9 per cent.
The decline was mainly driven by lower inflation in the housing, water, electricity, gas and other fuels category, reflecting improved price conditions and stabilising input costs, he said.
“Consequently, overall inflation for this year is projected to soften further, ranging between 1.2 and 1.5 per cent, supported by contained global cost pressures, improved supply conditions, and ongoing domestic price management measures.”
As of October, he said Sarawak’s revenue collection reached RM10.3 billion, representing 73 per cent of its projected target for the year.
However, based on current trends, Sarawak is projecting total revenue for this year to reach RM12.1 billion.
“This marks a reduction of RM2.1 billion, or 15 per cent, from our original estimates of RM14.2 billion.
“The primary factor contributing to this shortfall is the sustained decline in global crude oil prices, which have hovered at an average of US$69 per barrel throughout the year,” he said.
Abang Johari said the actual revenue of RM10.3 billion collected was from State Sales Tax at RM3.9 billion, mainly comprising petroleum products (RM2.9 billion), crude palm oil and palm kernel oil (RM801 million), aluminium (RM64 million), lottery (RM59 million), timber products (RM21 million), ferro-alloys (RM20 million), polysilicon (RM9 million), cash compensation in lieu of oil and gas rights (RM2.2 billion), dividend (RM1.1 billion), interest and return from investment (RM640 million), raw water royalty (RM562 million), land premium (RM232 million), forestry (RM209 million), cash compensation in lieu of imports and excise duties on petroleum products (RM120 million), federal grants and reimbursement (RM744 million), and other sources such as mining royalties, water sales and land rents (RM593 million).
On the other hand, he said this year’s ordinary expenditure had been revised upwards from RM13.715 billion to RM14.061 billion, an increase of RM346 million or 2.5 per cent.
As of October, RM9.86 billion or 70 per cent of the ordinary expenditure had been expended, of which RM3.96 billion was for operating expenditure while RM5.9 billion was appropriated to Statutory Funds.
“For Development Expenditure, a sum of RM5.46 billion out of RM11.07 billion or 49 per cent has been expended for the same period.
“As the development momentum continues to pick up and project implementation intensifies, the expenditure is expected to increase towards the end of the year,” he said.
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