2027 State Budget highlights: RM11.2 billion in approved investments, crude petroleum exports registered 2.72 million tonnes, LNG exports registered 11.44 million tonnes

1. Investment activity is projected to expand by 5.0 percent in 2026, supported by continued public development spending and private-sector participation. In the first half of the year alone, Sarawak secured RM11.2 billion in approved investments across the services, manufacturing, and primary sectors - reflecting investor confidence in our State’s economic
prospect

2. On the external front, Sarawak’s trade performance has remained robust. In the first seven months of 2026, total trade expanded by 12.3 percent to RM117.1 billion, with exports rising
by 14.7 percent to RM79.2 billion, and imports increasing by 7.6 percent to RM38 billion. This stronger export performance widened the trade surplus to RM41.2 billion, 

3. Crude petroleum exports registered a modest increase of 1.5 percent, reaching 2.72 million tonnes while the export value rose more significantly by 13.7 percent. This stronger growth in value was underpinned by favourable global oil prices, with Brent crude averaging around USD91 per barrel during the period. 

LNG exports also recorded robust growth, with volumes rising by 22.8 percent to 16.44 million tonnes, accompanied by a 19.8 percent increase in export value.


4. For the year as a whole, inflation is projected to range between 1.0 percent and 1.5 percent, reflecting the expected side effects from recent developments in global energy and
commodity prices. 

5. Labour market conditions in Sarawak remained favourable in the first half of 2026. The labour force expanded to 1.267 million persons, compared with 1.262 million in the same
period last year, while the unemployment rate remained stable at an average of 3.4 percent.


6. Looking ahead to 2027, Sarawak’s economy is projected to expand between 5.0 percent and 6.0 percent, anchored by sturdy domestic demand and the continued
implementation of various investment projects.

7. In total, the State Government has committed RM1 billion to transform Sarawak’s paddy industry, with 14,000 hectares earmarked for paddy cultivation, and to be
equipped with complete modern irrigation and drainage systems.

Development will proceed in phases, with Phase 1 scheduled to begin in 2027, covering seven (7) areas totalling approximately 2,000 hectares