
Sarawak on track to enter new phase of growth
In a research note following a visit to the state, CIMB Research said: 'We expect renewed investor interest in Sarawak-linked names ahead of its state election, which must be held no later than April 10, 2027.'
The state's transformation strategy is guided by the post-Covid-19 Development Strategy 2030 (PCDS 2030), which targets gross domestic product (GDP) of RM282bil by 2030 and a median household income of RM15,000.
According to the research house, this implies 'a compound annual growth rate of 8% from a base of RM136bil in 2019'.
Last year, Sarawak notably attracted RM16.1bil in approved investments.
For 2025, the state government tabled a record RM15.8bil budget, with 70% allocated to development and infrastructure expansion being a top priority.
'We sense a renewed urgency to roll out critical infrastructure to support the PCDS 2030 blueprint,' said CIMB Research, citing projects such as new airports, seaports, 10 industrial parks, and water infrastructure upgrades.
A cornerstone of Sarawak's development is its clean-energy agenda, with the state planning to quadruple its generation capacity to 15GW by 2035 and strengthen cross-border energy exports via the Asean Power Grid, the research house said.
'Sarawak is positioning itself as a regional leader in clean energy,' CIMB Research said, adding that there has been a shift from mega dams to cascading hydropower, floating solar, and pumped hydro storage.
The state is actively pursuing a green hydrogen economy, leveraging its abundant hydropower resources to produce and export clean hydrogen
The research house said two flagship hydrogen projects – H2ornbill and H2biscus – are also central to Sarawak's hydrogen-economy aspirations.
The projects are aiming to produce over 240,000 tonnes of hydrogen annually for export to Japan and South Korea by 2029.
'Sarawak is making great strides in championing its vision of a hydrogen-based economy,' said CIMB Research, adding that the total value of ongoing hydrogen-related projects is estimated at RM20bil.
At the same time, to facilitate industrialisation, major zones like Samalaju Industrial Park (SIP) and Petchem Industrial Park Kidurong are being expanded.
SIP alone has secured RM57bil in investments, with just 12% of land left for development.
Meanwhile, the Kuching Urban Transportation System that will feature hydrogen-powered autonomous rapid transit vehicles is also progressing, with CIMB Research expecting the first phase to be operational by 2028.
Among listed beneficiaries that are poised to benefit from the growth phase in Sarawak, CIMB Research highlighted Gamuda Bhd , which it said is well-positioned to secure road contracts worth up to RM1bil, and IJM Corp Bhd , which is rebuilding its presence through two contracts under the Sarawak tram project.
In addition, Ibraco Bhd , which is expanding into water pipe and asphalt production, also stands to gain from the state's infrastructure expansion, while Cahya Mata Sarawak Bhd offers diversified exposure to Sarawak's resource-rich economy.
The research house said Solarvest Holdings Bhd also continues to be a key enabler in the state's solar and hydrogen transition.
With infrastructure-led growth expected to lift incomes, CIMB Research said it believes consumer-oriented stocks are also set to benefit.
The research house highlighted CCK Consolidated Holdings Bhd and Supreme Consolidated Resources Bhd as proxies to rising food and beverage demand in the state.
'CCK is widely regarded as Sarawak's largest vertically integrated poultry supplier, operating a broad retail network of 79 outlets across Sabah and Sarawak, including 69 Fresh Mart stores, four supermarkets, and six wholesale outlets,' the research house said.
Supreme, meanwhile, is a fully integrated fast-moving consumer goods company focused on the distribution of food products across Sabah and Sarawak, it added.
Despite the optimism, CIMB Research warned that investors should be mindful of several risks such as external economic and geopolitical headwinds, challenges in bridging the talent gap and securing funding for mega projects, rising competition from foreign contractors and unlisted local players, as well as limited listed proxies for the hydrogen theme.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Star
14 minutes ago
- The Star
Regulating online fraud: Malaysia's OSB vs China's approach
INITIATED in the 2010s, China's Digital Silk Road (DSR) aims to enhance digital connectivity across nations through infrastructure, trade, finance, people-to-people exchanges and policy coordination. It presents new commercial opportunities for Malaysia by fostering collaboration between Chinese and Malaysian businesses, strengthening Malaysia's digital economy ecosystem. The convergence of China's DSR, the Covid-19 pandemic, and the rapid rise in artificial intelligence (AI) have significantly accelerated the adoption of digital technologies in business processes and operations within Malaysia. However, while digitalisation offers numerous benefits, it has unfortunately also led to a significant surge in online criminal activity. A recent report by The Star revealed that nearly RM600mil was lost to online fraud from January to March, according to the Bukit Aman Commercial Crime Investigation Department. The report highlighted that criminals are exploiting technological advancements and modern lifestyles, using fake digital identities, fraudulent websites, chatbots and deepfakes to deceive victims. Recognising the escalating threat posed by these sophisticated methods, regulatory interventions focused on online content have become a prevailing trend. Malaysia, in line with this trend, passed the Online Safety Bill (OSB) 2024 in December. It is awaiting official gazettement, and its effective date will be determined by Communications Minister Datuk Fahmi Fadzil. The new law aims to enhance online safety in Malaysia by regulating harmful content and establishing duties and obligations for application service providers (those who provide network services such as Internet access), content application service providers (those who provide content such as broadcasting and video streaming), and network service providers (those providing cellular mobile services and bandwidth services) operating within and outside Malaysia. According to Minister in the Prime Minister's Department (Law and Institutional Reforms) Datuk Seri Azalina Othman Said, it applies to licensed application and content service providers such as Instagram, WhatsApp, TikTok and YouTube. The Bill regulates two categories of content: 'harmful content' and 'priority harmful content'. Its First Schedule defines the scope of harmful content, which includes content on financial fraud, excluding content that promotes awareness or education related to financial fraud. The content on financial fraud listed in the First Schedule is also classified as 'priority harmful content' in the Second Schedule. Key duties imposed on service providers include the obligation to implement measures to detect and mitigate harmful content (Section 13), issue user guidelines (Section 14), establish mechanisms for handling user reports of potentially harmful content (Sections 16 and 17), and prepare an Online Safety Plan (Section 20). For priority harmful content, such as financial fraud, service providers must take steps to prevent user access (Section 19). Despite Fahmi's assurance that the government's intention in introducing the OSB is to serve as a measure to combat crime, such as financial fraud, and not to restrict freedom of expression, critics remain concerned about its potential to restrict freedom of expression and be used as a censorship tool by the government. These are valid concerns, particularly considering the vague definition of harmful content in the OSB and the vast powers conferred on a commission reporting to the Communications Ministry. This commentary limits its discussion to the Bill's role concerning content on financial fraud. It is undeniable that unregulated content involving financial fraud, such as online scams, can damage business reputations and cause financial losses. Deputy Communications Minister Teo Nie Ching reported that RM1.224bil was lost to online crimes and scams in Malaysia within the first 10 months of last year, with many victims falling prey to sponsored advertisements on social media platforms. Indeed, a duty should be imposed on service providers to prevent these platforms from profiting from sponsored advertisements involving financial scams, for which they receive payment to promote products or services. Nevertheless, the provisions in the OSB are still lacking when viewed from the perspective of curbing online fraud. In China, the government passed the Anti-Telecom and Online Fraud Law ('ATOF Law') in September 2022. This law is more specific, aiming to prevent, deter and punish telecommunications and online fraud, strengthen efforts against such fraud, and protect the rights and interests of citizens and organisations. It imposes responsibilities on key businesses in the telecommunications, financial, and Internet sectors to prevent fraud risks. Among these requirements, the law requires service providers to verify users' identities before providing a range of services, such as web hosting, content and software distribution, livestreaming and advertising (Article 21). The law also imposes a duty of reasonable care on service providers to monitor, identify, and address the use of their services to commit fraud (Article 25). The ATOF Law provides a model regulation for targeted fraud prevention. While Malaysia and China operate within different legal and cultural frameworks, there are valuable lessons to be learned from China's experience in addressing online fraud. China's preventive measures have contributed to a more secure digital environment for businesses and consumers, minimising the impact of online fraud. While the Malaysian government's efforts to ensure a secure online environment and build trust in the digital ecosystem are laudable, more targeted provisions focused on the specific mechanics of online fraud would be more efficient, like China's ATOF Law, instead of a broad content regulation approach. China's ATOF Law, which emphasises user verification and platform monitoring for fraudulent activities, would allow for a more focused approach to content regulation. It is imperative that the Malaysian government review the adequacy of the OSB in achieving its intended purpose of curbing online crime. To enhance its efficacy, the government could consider incorporating more granular provisions that mandate specific actions from service providers and establish clear and enforceable guidelines and penalties. A well-regulated online environment, one that builds trust and security, can attract foreign investment and facilitate DSR-related collaborations, shaping the long-term trajectory of Malaysia's digital economy. Lai Chooi Ling is a lecturer at Tunku Abdul Rahman University of Management and Technology (TAR UMT). The views expressed here are entirely the writer's own. The SEARCH Scholar Series is a social responsibility programme jointly organised by the South-East Asia Research Centre for Humanities (SEARCH) and TAR UMT.


New Straits Times
14 minutes ago
- New Straits Times
Jo Ghani: 456 federal land encroachment cases recorded since 2015
KUALA LUMPUR: A total of 456 cases of encroachment on federal land were recorded from 2015 to May 2025, said Datuk Seri Johari Mohd Ghani. The Acting Natural Resources and Environmental Sustainability Minister said most encroachers use the land for squatter housing, small businesses, food stalls, and car wash operations. "According to records from the Department of Director General of Lands and Mines (JKPTG), there have been 465 cases of encroachment on federal land from 2015 to May 2025. "The total area of land owned by the Federal Government is 215,406 hectares. In the case of Penang, 26 complaints involved encroachment on federal land, affecting 18 land lots. "To enforce action against encroachment on federal land, JKPTG will coordinate with enforcement agencies, ministries, and relevant user departments. Under Section 425 of the National Land Code, enforcement notices will be issued to the encroachers to vacate the site. Subsequently, the land-holding agency (KJP) must take control measures to prevent repeated encroachment," he said in the Dewan Rakyat during the Minister's Question Time. He was responding to a question from Dr Siti Mastura Muhammad (PN- Kepala Batas) who asked to state the details of the encroachments on federal government-owned land nationwide and specifically in Penang, the action taken against the encroachers, and whether there are plans to develop land owned by the federal government. Johari said the respective ministry or user department must take action against encroachers, such as installing signboards, fencing the area, hiring security guards, and demolishing any illegal structures built by encroachers. "In more extreme cases where the encroachers refuse to vacate and structures are already built, legal action will be taken. If found guilty, the penalty may be up to RM500,000," he said. Johari said that each parcel of federal land is already planned for development depending on priorities and allocations approved by the federal government. "To ensure federal land is optimally utilised, JKPTG implements land conversion for use by other ministries and federal agencies that need it, as well as through rental and leasing arrangements," he said. Johari was also queried by Datuk Adnan Haji Abu Hassan (BN-Kuala Pilah) on the ministry's long-term and comprehensive strategic plan to address the issue of the failure to manage government assets, including abandoned government buildings, which has led to encroachment and wastage of national resources. Johari said any government land with an assigned user department or ministry becomes their responsibility. If a project or building on the land has been abandoned, the respective ministry must take responsibility to rehabilitate and repurpose the building. "If left abandoned, especially when the structure is over 40 or 50 years old and no longer suitable, the land must be returned to the federal government. The government will then seek alternative uses for it, such as developing affordable housing," he said.


Free Malaysia Today
an hour ago
- Free Malaysia Today
LFL rubbishes ex-chief judge's claim of pressure over constitutional ruling
LFL's N Surendran said judicial deliberation shouldn't be mistaken for interference. PETALING JAYA : Lawyers for Liberty (LFL) has rubbished claims of judicial interference after a former chief judge of Sabah and Sarawak said that a top judge pressured him to rule in favour of a litigant in a constitutional case against the federal government. Abdul Rahman Sebli, who retired last Thursday, claimed in his farewell speech that a 'very senior member of the judiciary' had emailed him, criticising his interpretation of the constitutional issue at hand. Rahman said judicial independence was not only about interference by the executive, but also about a judge's own peers in the discharge of judicial functions. In a statement today, LFL adviser N Surendran said such accusations were 'plainly wrong' and defied logic, particularly as the senior judge in question was part of the seven-member Federal Court panel hearing the case. 'How can a judge 'interfere' in a case which she herself was involved in deciding? Such a suggestion defies logic,' he said, without citing names. Surendran said unless someone outside the bench, such as from the executive, tried to influence the decision, it did not qualify as interference. He also argued that there was nothing 'sinister' about judges on multi-judge panels discussing cases and circulating draft judgments to persuade colleagues. 'In other words, there can be nothing wrong with any judge suggesting to his fellow judge in the same panel that his interpretation of the law is incorrect, and to try to change his position on it. 'This is part of the usual process of judicial decision-making, not just in Malaysia, but also of Supreme Courts in other common-law countries such as the UK or the US,' he said. Surendran also said it was 'strange' that a now former Federal Court judge was making a complaint that he was affected by 'peer pressure', adding that Federal Court judges enjoy security of tenure and constitutional protection. While acknowledging that judicial interference was a serious concern, Surendran warned against diluting its meaning. 'Judicial interference is a very serious matter. But it must not be confused with entirely appropriate and necessary internal processes of judicial deliberation,' he said.