In a landmark initiative to future-proof its economy, Sarawak has signed a strategic agreement with the World Bank and Malaysia’s Federal Government, marking the start of major reforms in State-Owned Enterprise (SOE) governance and public financial management.
The three-year partnership aims to enhance the management of public resources by improving SOE governance and aligning budget allocations with key policy priorities. Among the initiatives are the development of a new State Ownership Policy, the Sarawak Corporate Governance Code for SOEs, and the rollout of results-based budgeting across the State Government. These measures are designed to ensure more transparent, accountable, and effective management of Sarawak’s public resources.
“This agreement marks a turning point for Sarawak,” said the Premier of Sarawak, The Right Honourable Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg. “With stronger governance and modern financial management aligned with international best practices, we are laying the foundation for sustainable prosperity. Our partnership with the World Bank ensures Sarawak is not only resource-rich but also a model of accountability, financial resilience, and inclusivity.”
The reforms are expected to deliver concrete benefits for Sarawakians. By strengthening financial management and safeguarding revenues, the State is ensuring that today’s prosperity supports sustainable growth and creates opportunities for future generations, including higher-quality jobs. Stronger SOEs and improved economic governance will also enable Sarawak to invest in inclusive development projects, ranging from rural connectivity to education and skills development, ensuring that all citizens share in the State’s growth.
Zafer Mustafaoğlu, World Bank Division Director for the Philippines, Malaysia, and Brunei, said, “Sarawak is demonstrating bold leadership in reforming SOEs and enhancing public financial management. Having achieved high-income status at the state level, these additional reforms are critical to sustaining inclusive growth, improving accountability, and ensuring that prosperity is widely shared. The World Bank is proud to provide Sarawak with global expertise and proven best practices.”
This agreement builds on Sarawak’s ongoing collaboration with the World Bank, which began in 2022 with analytical studies on SOEs and the implementation of results-based budgeting. Over time, this partnership has evolved into a strategic collaboration, with the World Bank providing targeted technical expertise, institutional capacity-building, and advisory support to drive SOE reforms, strengthen public financial management, and embed results-based budgeting as a cornerstone of the State’s governance framework.
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