Uggah said Sarawak’s total trade registered a growth of 26.6 per cent from RM77.2 billion in 2020 to RM100.26 billion in 2021. – Photo by Roystein Emmor
KUCHING (May 26): Sarawak’s economy is projected to grow between five and six per cent this year, said Deputy Premier Datuk Amar Douglas Uggah Embas.
He said the state government foresees that Sarawak’s economy will continue with its recovery path as economic activities normalise with the reopening of the international borders, continued growth in the external sectors and improved domestic activities in 2022.
“Nonetheless, the downside risks remain, given the ongoing Russia-Ukraine war,” he said in his ministerial winding-up speech at the State Legislative Assembly (DUN) sitting today.
Uggah, who is Second Finance and New Economy Minister, said Sarawak’s total trade registered a growth of 26.6 per cent from RM77.2 billion in 2020 to RM100.26 billion in 2021.
“Export grew by 29.9 per cent driven by an increase in the export of liquified natural gas (LNG), crude petroleum, crude palm oil, petroleum products, aluminum, and ferro-alloys.
“We anticipate the prices of these commodities will remain strong and continue to contribute to export growth,” he said.
He said import increased by double-digit growth of 20.6 per cent in 2021 where import of machinery and transport equipment increased by 11.2 per cent, due to the development growth.
“Better external demand performance is expected in 2022 with anticipation of high commodities prices and continued progress of construction activities in Sarawak,” he added.
He also said that in 2021, private investment grew by 7.3 per cent supported by expansion in global demand and the realisation of new and ongoing investments.
“Sarawak has secured RM7.1 billion of investment in the manufacturing sector in 2021. The investment in capital and intermediate goods has also expanded.
“Following the continuous recovery in the economy, Sarawak anticipated to secure more investment in 2022 from both domestic and foreign sources,” he said.
He added that public investment, on the other hand, grew by 18.2 per cent in 2021 given increasing momentum in the implementation of infrastructure projects throughout Sarawak.
On consumption, Uggah said public consumption grew by 22 per cent in 2021 attributed to higher growth in Covid-19 related spending such as procurement of vaccines and medical supplies as well as emoluments.
“Whilst, private consumption grew marginally by 1.9 per cent in 2021, supported by the least restrictive containment measures which encourage household spending.
“The various government aids provided through federal stimulus measures as well as Sarawakku Sayang Special Assistance (BKSS) have further stimulated consumer spending,” he said.
He said private consumption is projected to expand further this year, reinforced by improvements in labour market conditions.
The Bukit Saban assemblyman also touched on Sarawak’s inflation rate which he said stood at 1.9 per cent for the first quarter of 2022.
“Food and non-alcoholic beverages remain the main contributor to inflation.
“Being a net food importer, Sarawak may continue to see an upward trend in its inflation in 2022, coupled with the pressure from escalating oil prices if the conflict between Russia and Ukraine prolongs,” he said.