KUCHING: The state government has allocated RM10 billion for economic recession, which is expected next year.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said Sarawak is all set to face the challenges and is already on standby mode should the economy be jeopardised by recession.
“Indeed, in 2023 and 2024, we expect to face challenges in the economy and in an attempt to survive, the government needs to intervene by injecting more money to resuscitate the economy.
“And that is why we have set aside a budget of more than RM10 billion in our 2023 State Budget. By 2024, we will increase the budget again.
“Alhamdulillah, our financial state is strong because we have a different approach. Our economic model is based on the strength that we have, which includes the green energy,” he said during the Dewan Usahawan Bumiputera Sarawak (DUBS) Kuching branch charity dinner at Borneo Convention Centre Kuching (BCCK) here on yesterday (Nov 27).
Abang Johari said the state is able to sustain based on the economic model and for an upswing, from 6 percent to 8 percent.
“At the same time, we have the gas resources and now the state is developing its own methanol plant.
“With this, it enables the state to increase its incomes and in return, the state will inject the revenue back to the economy from the revenue received,” he added.
Meanwhile, DUBS Kuching branch chairman Drahman Jaladin said it is important for all entrepreneurs to prepare and equip themselves in the upcoming months as the country is heading towards economic recession next year.
“Based on the statistics by the Ministry of International Trade and Industry, and Bank Negara, there is a possibility of slow growth in the country’s Gross Domestic Product (GDP) which will see a downfall from 7 percent to 5 percent.
“However, for Sarawak, it will be a little different. This is because based on the investments that we have made, quite a lot of projects are injected and in the pipeline, hence once they materialise, there will be multiple spillover effects among all the businessmen.
“So, in Sarawak, the premier’s strategic decision to come up with this will see multiple spillover effects. Among others, one of them is the RM280 million university to be built in Telaga Air which will create investment, employment, and produce human resources,” he said.
Apart from that, the state is also embarking on green-based projects, he added.
“I think Sarawak, under the premier’s governance, has done a fantastic job and is believed to be the capitalist from 2023 onwards.
“Thus, I’m very confident about this, and I see this as an opportunity for all of us here.
“I hope the small- and medium-scale Bumiputera entrepreneurs will benefit from this move and the state government is also poised to provide opportunities to drive the state forward together,” said Drahman.