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THE impact of recent reciprocal tariffs imposed by the United States on Sarawak’s economy is expected to be minimal, owing to the state’s export reliance on Asian markets rather than the US, according to Deputy Minister for International Trade, Industry and Investment, Datuk Malcolm Mussen Lamoh.
Speaking during the Sarawak State Assembly sitting on Tuesday, Mussen said Sarawak’s exports to the US amounted to RM1.2 billion in 2023, making up just 0.9 per cent of the state’s total exports. The primary export to the US was ferroalloy.
“Sarawak’s main exports consist of liquefied natural gas (LNG), petroleum, palm oil and aluminium. These exports amounted to RM102.6 billion in 2023 and contributed 78.4 per cent to Sarawak’s total exports.
“Our main export market is Asia, which accounted for 73.4 per cent of overall exports. This new tariff is expected to have minimal direct impact on Sarawak,” Bernama cited him saying in response to a question from GPS-Engkilili assemblyman Dr Johnichal Rayong.
Mussen explained that LNG is chiefly exported to Japan and China, while palm oil goes primarily to China and India. Petroleum exports are mainly destined for Peninsular Malaysia, Australia and Thailand. As such, Sarawak’s trade flows remain largely unaffected by changes in US tariff policy.
He added that Sarawak would continue to refine its economic strategies to align with shifting global trade dynamics, working in tandem with federal initiatives. These include diversifying export markets, fortifying trade partnerships, enhancing supply chain resilience, and investing in strategic sectors.
In a separate matter, the development of Sarawak’s microalgae project faces difficulties due to unpredictable weather patterns, which disrupt the consistency of the microalgae growth cycle.
Deputy Minister of Energy and Environmental Sustainability, Datuk Dr Hazland Abang Hipni, said the success of the microalgae initiative hinges on effective monitoring and the adoption of advanced technologies such as artificial intelligence (AI) sensors.
“In addition, the project requires significant investment in technology, such as AI sensors, to replace manual labour in operating the process of producing high-quality microalgae,” he said in response to a question from GPS-Krian assemblyman Friday Belik.
Dr Hazland noted that the state aims to scale up production to meet global demand for bio-feedstock. He encouraged local companies and entrepreneurs to explore opportunities in cultivating and harvesting microalgae, including the production of crude algal oil and the development of algal biomass for use in animal feed, nutraceuticals and pharmaceuticals.
“However, it must be emphasised that the project must be undertaken at an appropriate scale to ensure its viability and sustainability,” he added.
He also revealed that SEDC Energy Sdn Bhd, a subsidiary of the Sarawak Economic Development Corporation (SEDC), is exploring alternative feedstock for the production of sustainable aviation fuel (SAF), including used cooking oil, seaweed, agricultural waste and other biomass sources. - May 20, 2025