Billions at stake as experts say Sarawak's ambitious plans lack key groundwork

Malay Mail

22-04-2025

KUALA LUMPUR, April 22 — Sarawak must take a more cautious approach in evaluating its mega projects amid global economic uncertainties, said analysts who warned that these would falter unless the state addresses major issues.
Free Malaysia Today reported that the call follows Sarawak Premier Tan Sri Abang Johari Openg's announcement of a review of development policies in light of shifting global trends.
Experts warn that factors such as talent shortages, high costs, and demand risks could undermine major initiatives like the new airport, transport system, and gas roadmap.
Asrul Hadi Abdullah Sani of ADA Southeast Asia said a lack of skilled workers could threaten both construction and long-term operations.
'One of the main risks associated with Sarawak's mega-projects, such as Air Borneo and Petros, is the shortage of talent for key roles and the general workforce," he said in the report.
'Non-Sarawakian Malaysians have always been required to get a permit to work in Sarawak'.
He suggested that easing immigration rules could help attract more skilled workers from outside the state.
According to Samirul Ariff Othman of Global Asia Consulting, the proposed new airport, designed for 15 million passengers annually, could face underutilisation.
'This expansion is seen as a strategic move to boost tourism and business travel, enhancing Sarawak's connectivity and economic growth,' said Samirul.
'But the proposed (new) capacity significantly exceeds current usage, raising questions about potential underutilisation.'
He noted that the RM100 billion allocation for the airport and Tanjung Embang port must be matched with strong demand to be sustainable.
Samirul also raised concerns over the RM6 billion hydrogen-powered Autonomous Rapid Transit (ART) system, citing its high infrastructure and maintenance costs.
State assemblyman Violet Yong previously questioned the cost, saying: 'The state is paying a China firm to manufacture the vehicles for Sarawak, but that firm had stopped production for their China market due to cost factors as hydrogen fuel is extremely expensive to produce, as is the case all over the world.'
The Sarawak Gas Roadmap 2030 may also fall short without significant foreign investment, according to industry analysts.
'In the end, the Sarawak Gas Roadmap's success depends on the appetite of potential foreign investors,' said one analyst.
Although Sarawak is drawing heavily on oil and gas revenue and federal allocations, analysts say prudent project planning will be critical to securing long-term returns.
The Sarawak government and its linked companies are currently funding the projects through a combination of oil and gas revenue, state reserves, and federal support.
As of 2024, Petronas had channelled RM96 billion to Sarawak's coffers, while infrastructure and upstream investments have reached RM280 billion.
Despite receiving a RM600 million special grant and RM5.9 billion in federal development funds, Sarawak spent only 54.43 per cent of its 12th Malaysia Plan allocation, below the national average.