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You are here: Home / cat / Building Lasting Growth: How Good Governance Is Transforming Sarawak

Building Lasting Growth: How Good Governance Is Transforming Sarawak

Dated: November 21, 2025

Thirty-eight-year-old journalist Norman Goh, originally from Kuching in Sarawak, reflects on how the state has evolved and how good governance can unlock its potential. Now based in Kuala Lumpur, he believes Sarawak can attract high-impact investments by improving efficiency, strengthening human capital, and focusing on key industries. For Goh, transparency and sound governance are essential to building investor confidence, creating quality jobs, and encouraging Sarawakians to return home. With competitive salaries, clear career pathways, and an enviable quality of life, he believes the state is well-positioned to retain and attract talent.

Better governance directly influences everyday life by enabling faster business permits, reliable energy, quality education, good healthcare, and strong infrastructure. These elements create an environment where businesses thrive, productivity rises, and well-paying jobs emerge. When public systems function effectively, economic gains can reach rural areas, lifting families out of poverty and expanding opportunities so all Sarawakians can share in the state’s growth.

Now that Sarawak has attained high-income status, the challenge ahead is sustaining growth through strong institutions that promote inclusion and shared prosperity. In March 2025, the World Bank Group, the Federal Government of Malaysia, and the Sarawak State Government signed a landmark agreement to modernize public financial management, strengthen State-Owned Enterprises (SOEs), and improve planning and budgeting processes.

Under this agreement, Sarawak will implement a new SOE Ownership Policy, introduce the Sarawak Corporate Governance Code for SOEs, and deploy a digital dashboard to enhance performance monitoring. Strengthening SOE governance will improve transparency, operational efficiency, and alignment with development goals, while enabling SOEs to reinvest in infrastructure and service improvements.

The rollout of Result-Based Budgeting beginning with the 2025–2026 budget cycle aims to ensure public spending delivers tangible results. By linking budget allocations to outcomes, Sarawak can direct its resources more effectively toward education, healthcare, and infrastructure. This approach strengthens accountability, sharpens fiscal discipline, and supports job creation by aligning spending with the state’s development priorities.

During the Agreement Exchange Ceremony in Kuching, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg emphasized that effective governance and professional, transparent SOEs are essential to achieving Sarawak’s vision of being a fully developed state by 2030. The World Bank also highlighted that Sarawak’s reforms align with global trends, as many countries confront the need for stronger SOE oversight and more efficient public financial management.

The partnership marks the start of an ambitious reform journey requiring sustained leadership and broad support. With global expertise and local commitment, Sarawak is laying the foundation for stronger institutions, better governance, and a future where every Sarawakian can benefit from the state’s progress.

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