Premier: South Korea is Sarawak’s third biggest LNG importer

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Abang Johari (right) presents a memento to Ambassador of South Korea to Malaysia Lee Chi-beom. – Photo by Chimon Upon

KUCHING (June 9): South Korea is Sarawak’s third biggest importer of liquefied natural gas (LNG) after Japan and China, said Datuk Patinggi Tan Sri Abang Johari Tun Openg.

The Premier of Sarawak said Sarawak exported 4.9 million tonnes of LNG, with value of RM5.9 billion to South Korea in 2020.

“Sarawak and Republic of Korea have long established a good relationship since 1970s. We are no longer strangers to one another.

“Further to that, our trade relationship has become increasingly important, alongside with energy development in recent years,” he said when delivering his keynote address at the Sarawak-Korea Energy Business Forum 2022 themed ‘Accelerating The Sarawak-Korea Strategic Energy Partnership’ at the Waterfront Hotel here today.

Abang Johari pointed out that Sarawak had awarded contract worth US$1.07 billion to Samsung Engineering Co. Ltd to provide licensing, engineering, procurement, construction and commissioning (LEPCC) services for the Sarawak methanol project at Tanjung Kidurong in Bintulu.

Due to myriad of challenges brought about by the Covid-19 pandemic, he said Sarawak’s gross domestic product (GDP) contracted by 7.1 per cent in 2020 before rebounding to an estimated growth of between three and four per cent last year.

“We expect the global economy to strengthen further this year, geopolitical tension between Russia and Ukraine has intensified the disruptions of supply chain and caused greater uncertainty.

“Commodity prices, particularly energy and food, spring up quickly, dampening the pace of recovery of the global economy,” he noted.

Abang Johari believed that the volatility in energy prices that rose from US$70.89 per barrel last year to now, more than US$110 per barrel had put additional pressure onto the economy of South Korea, a country that relies heavily on imported energy.

“This is particularly in times when the fight against the pandemic is not fully over. We see how uncertainties surface in different structures, and how they, bring the cause of economic disorders.”

He said Sarawak wants to seize these opportunities and emerge as a stronger region.

As such, he said Sarawak had embarked on a full-fledged transformation to capitalise on mega-trends around the world.

“We are now implementing the Sarawak Post Covid-19 Development Strategy (PCDS) 2030. Our focus is on restructuring and diversifying our economy into high value downstream industry while creating a thriving society that is driven by data and innovation.

“Most importantly we want to ensure our transformative journey take us towards economic prosperity, social inclusivity and sustainable environment,” he said.

Abang Johari added that one of the key drivers of growth under PCDS 2030 is renewable energy.