Sarawak on an upward recovery
AFTER two years of grappling with the Covid-19 pandemic and all the uncertainties it has brought on economies worldwide, Malaysia’s economy is finally back on the mend.
The Malaysian economy registered a positive growth of 3.6 per cent in the fourth quarter of 2021 (4Q21) as compared with a decline in growth of 4.5 per cent while the overall 2021 GDP growth was at 3.1 per cent, as economic activities resumed with the easing of containment measures.
The rebound in economic activity was aided by recovery in the labour market as well as continued policy support and the resumption of business and social activities.
Strong external demand amid the continued upcycle in global technology provided a further lift to growth while all economic sectors recorded improvements in growth, led by the services and manufacturing sectors.
“The continued easing of movement restrictions, as well as more vibrant economic and social activities which are in line with strong domestic and external demand, are expected to support further economic expansion.
“The on-going positive business and consumer sentiments are also bolstered by high vaccination rates, where nearly 80 per cent of the entire population is fully vaccinated,” Minister of Finance Tengku Datuk Seri Zafrul Abdul Aziz in his statement on the 2021 GDP.
The impact of this recovery can also be seen with all states recording positive performance in 2021 compared to the decline in 2020.
In 2021, Sarawak retained its position as one of the top six contributors to Malaysia’s overall GDP growth despite still struggling with an influx of Covid-19 infections last year.
According to the Department of Statistics Malaysia (DOSM), Sarawak contributed 9.5 per cent to Malaysia’s total GDP growth. Selangor remains in the lead of the national economy with a contribution of 24.8 per cent, followed by Kuala Lumpur (15.7 per cent), Johor (9.5 per cent), Sarawak (9.5 per cent), Penang (7.1 per cent) and Sabah (5.7 per cent).
The six states remain the main contributors to the national GDP with a total contribution of 72.2 per cent (2020: 72.1 per cent), the statistics department stated.
For the GDP per capita, DoSM) chief statistician Datuk Seri Dr Mohd Uzir Mahidin said 13 states and two federal territories registered an increase in the GDP per capita value compared to 2020, with seven states recording a GDP per capita value above the national level of RM47,324, namely the Federal Territory (FT) of Kuala Lumpur (RM124,232) and FT of Labuan (RM78,032), Penang (RM58,527), and Sarawak (RM57,635).
The implementation of the Post-Covid-19 Development Strategy 2030 (PCDS 2030) under the 12th Malaysia Plan (RMK-12) has ensured that Sarawak will be capable of exiting the pandemic phase safely.
Last year, Chief Minister Datuk Patinggi Abang Johari Tun Openg said the state government has allocated an estimated RM63 billion to implement PCDS 2030.
When launching the PCDS 2030 in conjunction, he said the target under 12MP and the PCDS 2021-2030 is for the economy to grow at an average of six to eight per cent per annum.
“The Sarawak government has committed an estimated RM63 billion to implement PCDS 2030 under the 12MP whereby, RM30 billion will come from direct development expenditure and RM33 billion from alternative funding.
“Through this creative financial modelling and revenue reengineering, we will continue to enjoy a healthy fiscal position,” he said in his keynote address.
Among the strategic thrusts under the plan are digital transformation, basic infrastructure, transport and renewable energy.
Sarawak’s economy was also boosted by aid packages to ease the burden of the people and to help businesses continue to stay in operations despite the sporadic lockdowns last year.
Overall, Sarawak’s economy recorded a positive growth of 2.9 per cent in 2021, an improvement from a negative growth of -6.8 per cent last year, with an economic value of RM131.2 billion (2020: RM127.5 billion).
The Services sector is the largest contributor to Sarawak’s economy with a contribution of 35.9 per cent followed by the the manufacturing sector which contributes 28.4 per cent and the mining & quarrying sector with a contribution of 21.1 per cent. The agriculture sector and the construction sector respectively contributed as much as 11 and 3.4 per cent.
According to DOSM, this improvement in economic performance is driven by the positive growth of the main sectors, namely the service, manufacturing and construction sectors which recorded an increase.
However, the shrinking mining & quarrying and agricultural sectors have slowed Sarawak’s economic growth.