Premier: Sarawak's energy policies to unlock up to RM430 bln investments, create 44,000 jobs
Abang Johari says the initiatives form part of Sarawak's broader strategy to become a regional renewable energy powerhouse. – Photo by Roystein Emmor
KUCHING (May 28): The Sarawak government's new energy policies are expected to unlock investment opportunities worth between RM350 billion and RM430 billion, while creating approximately 44,000 new high-value jobs in the energy sector for Sarawakians.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the initiatives form part of Sarawak's broader strategy to become a regional renewable energy powerhouse.
'These jobs will be generated by new industries, which can boost opportunities for local small and medium-sized enterprises (SMEs), attract domestic and foreign direct investments, and strengthen our regional and global competitiveness,' he said in his winding-up speech at the Sarawak Legislative Assembly (DUN) sitting here today.
He added that the policies would also support Sarawak's long-term goals of economic prosperity, environmental sustainability, and energy security.
Among the key policies to be introduced are the Sarawak Hydrogen Economy Roadmap, the Sarawak Sustainability Blueprint, the Sarawak Energy Transition Policy (SET-P), and the Sarawak Energy Efficiency Roadmap.
Abang Johari said energy security is a cornerstone of Sarawak's ambition for rapid and inclusive economic development, especially as demand rises with the state's growing population and industrial base.
He noted that Sarawak has set a target for renewable energy to account for 60 to 70 per cent of its energy mix by 2035, in line with the Post Covid-19 Development Strategy (PCDS) 2030 and the forthcoming SET-P.
'Sarawak is developing four strategic energy hubs – the Renewable Energy Hub, Natural Gas Hub, Hydrogen Hub, and Carbon Capture, Utilisation and Storage (CCUS) Hub – each playing a complementary role in ensuring long-term energy security,' he said.
To support the state's ambition of achieving 10 gigawatts (GW) of installed capacity by 2030 and 15GW by 2035, Abang Johari said the state will continue to develop renewable energy projects through the Independent Power Producer (IPP) model.
He also announced a major restructuring of Sarawak Energy Berhad (SEB), which will see the separation of power generation and distribution. Under this model, the private sector will participate in power generation, while SEB will remain the single buyer for electricity distribution.
'SEB must be empowered to evolve in support of Sarawak's energy ambitions. This restructuring is key to ensuring SEB is fully able to drive Sarawak's vision of becoming both a Battery of Asean and a renewable energy powerhouse,' he said.
He highlighted that large-scale solar, bioenergy, and waste-to-energy projects are already drawing strong private sector interest, but infrastructural challenges such as feedstock aggregation and grid modernisation must be addressed.
In a further move to bolster Sarawak's position in the global energy market, Abang Johari said Sarawak is advancing hydrogen-ready technologies, including a Combined Cycle Gas Turbine (CCGT) facility, to improve energy efficiency and enhance interconnections with neighbouring regions like Sabah and Brunei.
On the international front, the Premier said the World Economic Forum (WEF) has recognised Sarawak's leadership in the green transition and invited him to present Sarawak's energy agenda at the WEF Annual Meeting of the New Champions in Tianjin, China on June 26.
He also revealed that Bintulu has been nominated as Malaysia's first candidate for the WEF's Transitioning Industrial Cluster (TIC) initiative.
'Transitioning industrial clusters are geographic areas where co-located businesses and industries collaborate to transition from traditional practices to cleaner, low-carbon operations aligned with net-zero goals,' he said.
'We are not just preparing for recognition in Davos early next year, we are laying the foundation for Sarawak to stand among global leaders in shaping the low-carbon industrial future,' he added. abang johari DUN lead new energy
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Notwithstanding, it remains to be said that the O&G agreement still requires good faith and continued vigilance to ensure its long-term success and mutual advantage. Ultimately, the success of the signed declaration will be gauged by its ability to improve the life of the people of Sarawak, as well as to contribute to the progress and prosperity of the country. The joint declaration on O&G represents a move towards greater cooperation and a more equitable distribution of wealth and opportunities. It does show that the federal government is willing to discuss and give Sarawak more power over its resources and independence. This negotiated arrangement to address Sarawak's concerns about its O&G rights is significant within the broader context of devolution under the Malaysia Agreement 1963 63), and it should not be viewed in isolation of other socio-political dynamics. Beyond the historic joint agreement, it is hoped that the Kuala Lumpur-Kuching cooperation will serve as the basis for future agreements and legal discourse that, rather than being adversarial, uphold the spirit and letter of MA63. However, the true impact of the joint declaration will depend on its implementation and how the modifications to Sarawak's revenue-sharing, regulatory authority, and operational domain are defined. Sarawak in advantageous position A closer examination reveals that Sarawak may have secured a more advantageous position, although both sides are likely touting the agreement as a win-win. Interestingly, a shift in the power dynamic is apparent with Sarawak's increased control over its O&G resources, which may be achieved through greater revenue-sharing, decision-making power in exploration and production, and participation in the value chain. As Sarawakians, we would like to view it as a decisive victory for our state, and we recognise that its long-term economic effects and the details of its implementation must follow suit. Equally gratifying to us is that initial indications suggest the joint agreement is a significant step towards greater autonomy and resource control for Sarawak. Sarawak's greater control over its hydrocarbon resources is the primary factor contributing to its advantage. Sarawak can avoid depending on federal funding by actively participating in the lucrative O&G industry and producing a sizeable amount of revenue for the state through Petros. This increase could improve the standard of living of Sarawakians by funding the development of infrastructure, healthcare, education, and other important areas. Sarawak can avoid depending on federal funding by actively participating in the lucrative O&G industry and producing a sizeable amount of revenue for the state through Petros. Sustainable, equitable collaboration Discerning critics will concur with me that further discussion is necessary in several crucial areas to reinforce the Kuala Lumpur-Sarawak joint declaration on O&G in Sarawak. Clarifying the definition of 'net revenue' and putting in place transparent, mutually agreed-upon accounting practices are crucial to avoid disputes regarding revenue sharing. Sarawak's role in overseeing O&G operations, including enforcing environmental rules, must be strengthened to ensure that resources are used responsibly. Investing in Sarawakian talent development in the O&G sector through focused education and training programmes would give power to the local communities and make the industry more sustainable. Lastly, to avoid problems and keep the collaboration strong and productive, there should be a clear way to resolve disputes that includes specific steps and deadlines. Although we commend Kuala Lumpur and Sarawak for their willingness to collaborate and pool resources, there may still be 'gaps' due to the intricacies of revenue-sharing, operational control, and future exploration rights. Neither side should lose sight of this. Given this, the joint declaration should be regarded as a transitional stage that aims to establish the framework for a more sustainable and equitable collaboration. Amidst the signed declaration, Petronas appears to be devoted to striking a balance between national duty and profitability. — AFP photo Secure Petros' position However, to guarantee its long-term success and mutual gain, both parties must maintain their vigilance and act in good faith. The declaration's actual effectiveness will ultimately be determined by how it affects Sarawakians' quality of and the country's general prosperity. Petros has secured a favourable bargain. This stems from several considerations. First, the power balance shifted from one heavily federally dominated to one of state dominance as a result of the mutual understanding, which gives Sarawak increased authority over the extraction, development, and production of O&G resources inside its borders. This includes greater control over operational choices, profit-sharing, and direct access to its natural resources. Additionally, the deal enables Sarawak to develop its O&G industry knowledge and capabilities, generating jobs and promoting technological development in the state. Sarawak can strengthen its position and ensure future prosperity by ensuring that future development is in line with its nuanced needs and priorities rather than being limited by federal interests. This can be achieved by having a defining say in resource management decisions. * Toman Mamora is 'Tokoh Media Sarawak 2022', recipient of Shell Journalism Gold Award (1996) and AZAM Best Writer Gold Award (1998). He remains true to his decades-long passion for critical writing as he seeks to gain insight into some untold stories of societal value. MA63 oil and gas PDA Petronas Petros sarawak
