2027 State Budget highlights: RM32.5 million for NCR land development, embarking on Masterplan study for Space and Aerospace Dev, Limbang-Trusan potential oil exploration areas

 1. For Native Customary Rights land development, RM32.5 million in Federal loan funding to SALCRA is budgeted next year for oil palm replanting across 8,300 hectares and new planting across 6,400 hectares. Another RM2 million is budgeted to accelerate Section 18 land title issuance for SALCRA participants.

2. The government will embark on a Masterplan Study for Space and Aerospace Development, which will guide the State’s long-term strategy in this frontier sector. An allocation of RM1.5 million is provided
next year to support this study. These measures are anchored by the Sarawak Space Agency (SSA), which is being entrusted to spearhead the development of Sarawak space sector.

3.The Adong Kechil West field in Block SK433, whichachieved first oil production in 2026 from Well No. 1, revives Sarawak’s onshore petroleum industry after nearly five decades. Its associated gas will support the Miri CCGT, reinforcing local supply security. Looking ahead, with promising gas potential in Limbang-Trusan set for intensified exploration next year, the northern frontier is poised to emerge as a new growth corridor for industry, petrochemicals, and revenue diversification.

4. The Kuching Low-Carbon Gas Hub at Tanjung Embang will integrate LNG regasification, gas-fired power generation, and low-carbon industries, supported by new logistics infrastructure. Development is expected to commence in 2027
under a public-private partnership model.

5. For 2027, the state government is committing a substantial RM103.7 million in development expenditure alongside RM186 million in dedicated operational and event grants to accelerate the growth of this vital tourism sector.