Sarawak government loan balances are projected to decline to RM1.7 billion by 2030, says premier

KUCHING, June 11, 2026: Premier Abang Johari Openg has projected that the existing state government loan balances are projected to decline significantly to approximately RM1.7 billion by 2030 through stronger financial performance and loan restructuring initiatives.

Caption: Premier Abang Johari Openg says stronger SOEs would ultimately create greater value not only for themselves but also for the state and the people they serve.

He stressed that dividend contributions from commercial government-linked companies (GLCs) are expected to be more than double as  profitability improves.

“These outcomes will strengthen both the financial sustainability of our SOEs and the fiscal position of the State, creating greater capacity to invest in future development priorities,” he said when officiating at the Sarawak SOEs Transformation Programme: A Pledge for Good Governance, High Performance and Value Creation today.

Abang Johari said stronger SOEs would ultimately create greater value not only for themselves but also for the state and the people they serve.

He said Sarawak could reduce operating grant requirements by approximately RM403 million by 2030 through the transformation of its State-Owned Enterprises (SOEs), with the savings potentially redirected towards infrastructure and development projects across the state.

He said the projected savings would allow the government to channel more resources towards priorities that directly benefit the people.

“RM403 million. That is money that can be redirected to rural roads upgrading, to schools repairs, and to infrastructure development that opens up economic opportunities in every corner of Sarawak,” he said.

He said the transformation programme is aimed at strengthening financial sustainability, reducing dependency on government support and improving overall performance among SOEs.

According to a Financial Self-Reliance Study conducted on 36 entities, government grants currently account for approximately one-third of the total income of statutory bodies, while about 44 percent of their operating expenditure is funded through government grants.

“Nearly half of the cost of operating some of these entities continues to be funded by public resources.

“This is not merely a financial issue. It is a question of stewardship and accountability.

“The resources entrusted to these entities come from the hard work of taxpayers, businesses, and ordinary Sarawakians who expect us to manage public funds responsibly and deliver meaningful outcomes,” he added.

Abang Johari stressed that transformation was necessary to ensure public resources are utilised more efficiently while enabling SOEs to become stronger and more self-reliant.