Thursday, June 8

Sarawak’s economy grows 2.9 pct in 2021


Photo shows the Sarawak State Legislative Assembly building.

KUCHING (Aug 8): Sarawak’s economy recorded positive growth of 2.9 per cent in 2021 with value added amounting to RM131.2 billion, according to figures in the 2021 socio-economic report by the Department of Statistics Malaysia (DOSM) for Sarawak.

The service sector was the largest contributor to Sarawak’s economy with a contribution of 35.9 per cent followed by the manufacturing sector, which contributed 28.4 per cent and the mining and quarrying sector with a contribution of 21.1 per cent.

“This improvement in economic performance is driven by the positive growth of the main sectors, namely the service, manufacturing and construction sectors which recorded an increase,” the DOSM said in the report.

“However, the shrinking mining and quarrying as well as agricultural sectors have slowed Sarawak’s economic growth,” it warned.

“The performance of the services sector recorded an increase with value added amounting to RM47.0 billion, growing 2.1 per cent.

“This increase is supported by positive growth in utilities, transportation and storage subsectors, and
information and communication services with growth of 3.4 per cent. In addition, increase in government services also contributed to the growth of this sector.

This was followed by government initiatives that helped with the recovery of this sector, including special individual income tax exemptions for domestic expenses up to RM1,000 extended until year of assessment 2022.”

The report noted that the implementation of the Post-Covid-19 Development Strategy 2030 (PCDS 2030) under the 12th Malaysia Plan (RMK-12) was underway to ensure the goal of making Sarawak a developed state can be achieved.

In order to ensure the smooth implementation of PCDS 2030, RM63 billion has been allocated by the Sarawak state government. Among the strategic cores under the plan include digital transformation, basic infrastructure, transport and renewable energy.

“In addition to the Bantuan Khas Sarawakku Sayang (BKSS) package which continued, the Sarawak government also introduced some incentives given to entrepreneurs transport services, traders and players
the tourism industry and the granting of discounts involving business premises rent and utility bills.”

Looking at the manufacturing sector, recorded value added reached RM37.2 billion in 2021 – a growth of
11.2 per cent. This growth was driven by increase in production activities of main subsectors such as
petroleum, chemical, rubber and plastic products contributing as much as 82.1 per cent.

In addition, in 2021, as much as RM5.7 billion in investment value was approved in Sarawak involving RM0.05 billion in domestic investments and RM5.7 billion in foreign investments.

Sarawak’s mining and quarry sector recorded a RM27.6 billion value added in 2021, shrinking from
RM28.6 billion in the previous year.

“The sector shrank 3.3 per cent from growth negative 4.7 per cent in 2020. This decline affected by the decline in gas production natural and crude oil & condensate,” DOSM said.

“Meanwhile, the agriculture sector also recorded a decline of 3.2 per cent by value added amounting to RM14.4 billion. This decrease is the result of the decline production of palm oil commodities, other crops as well forestry and logging subsector.

Next, the construction sector recorded value of RM4.5 billion with an increase of 10.2 per cent. This is a positive development in economic growth supported by the increase in subsector work value, civil engineering and residential buildings is the biggest contributor to this sector.”