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SARAWAK’S export revenue for 2023 reached RM102.6 billion, with petroleum, natural gas, palm oil, and aluminium comprising 78.4 percent of the state’s total earnings, prompting calls from senior state leaders to reduce dependency on natural resources amid global economic uncertainty.
State Deputy Minister for International Trade, Industry and Investment, Datuk Malcolm Mussen Lamoh, told the Sarawak State Assembly today that the bulk of these exports were destined for markets across Asia.
“We exported RM102.6 billion worth of petroleum and gas and oil palm and aluminium in 2023, which was 78.4 percent of our export revenue,” he said during question time.
“Sarawak is refining our economic policies to diversify our export products. This is in view of global changes due to the latest tariff wars. We must adapt accordingly to global changes.
“Even though the tariff wars do not impact us in big ways yet, we must be prepared by diversifying our economy now,” he added.
In response to a question, Lamoh stated that Sarawak exported only RM1.2 billion worth of goods to the United States last year.
“Our trade with the US is not much, so the direct impact of US policies on Sarawak is minimal,” he said.
His comments come a day after Sarawak Governor Tun Dr Wan Junaidi Tuanku Jaafar warned that the state must reduce reliance on oil and gas, logging and plantations, as global economic trends threaten to disrupt revenue from these sectors.
“Sarawak will definitely feel the impacts from current developments on the global scenes if we depend on oil and gas and natural commodities for revenue,” the Governor cautioned in his opening address to the state assembly in Kuching.
“We must reduce our dependence on natural resources. We must diversify our economic bases to generate new sources of income.
“Recently, there were news of Sarawak venturing into green energy and entering into the aerospace industry. These new exciting potentials will help to shape a Sarawak with a sustainable future.
“We can no longer depend too heavily on our traditional revenue earners,” he said.
Junaidi noted that efforts by Sarawak to attract foreign collaboration in digital technology would support the growth of future industries.
On 17 April, Premier Tan Sri Abang Johari Openg acknowledged that Sarawak could face a sharp drop in revenue due to falling oil prices, which have been driven down by trade tensions between the United States and other global powers.
“The price of crude oil has dropped to US\$65 per barrel and is expected to remain low for some time to come,” he said, warning that earlier revenue projections were based on an assumed price of US\$85–90 per barrel.
“The drop by US$20 per barrel is significant. By end of this year, we may see significant drop in oil export revenue.
“Sarawak may have to realign our export strategies if this situation extends into 2026 and beyond,” he added.
While Johari recently said the US tariff hike would not immediately impact Sarawak, he acknowledged that falling oil prices would have direct consequences on the state’s finances.
“Sarawak must therefore look ahead and plan our strategies accordingly to strengthen our export revenues if the oil revenue remains low.
“We must boost up our revenue to meet our current commitments,” he said.
Sarawak is a major producer of crude oil and natural gas, with large offshore production facilities near Miri and Bintulu. These resources are used domestically and exported globally. - May 20, 2025
