Sarawak proposes onshore financial centre, welcomes Sibu SEZ in 2027 Budget


Premier Tan Sri Abang Johari Openg (right), accompanied by Deputy Premier Datuk Douglas Uggah (left), showing his 2027 state budget speech at the Sarawak Legislative Assembly's atrium on Monday (Oct 12).

KUCHING: Sarawak is set to explore establishing an onshore international financial centre as part of a long-term strategy to position the state as a regional investment gateway, says Premier Tan Sri Abang Johari Openg.

Tabling the 2027 state budget at the Sarawak Legislative Assembly on Monday (Oct 12), Abang Johari said the proposed Sarawak Onshore International Financial Centre (SOIFC) will focus on distinct economic strengths rather than replicating existing financial hubs.

"This model would make the SOIFC an instrument of Sarawak's economic transformation, while attracting foreign capital and specialised financial services," he said.

Key focus areas for the proposed centre will include sustainable and green finance, infrastructure financing, investment management, Islamic finance, and digital financial services.

Abang Johari added that the state government will conduct a feasibility study to establish the appropriate regulatory framework, institutional structure, and implementation pathway. The study will benchmark against global financial centres such as Singapore, Shanghai, and Dubai, while engaging closely with the Federal Government and regulatory bodies.

During his speech, Abang Johari also thanked the Federal Government for approving Sarawak's proposal to establish the Sibu Special Economic Zone (SEZ).

The announcement follows Prime Minister Datuk Seri Anwar Ibrahim's Budget 2027 speech on Friday (Oct 9), where Putrajaya confirmed plans to enter formal negotiations with Sarawak on the SEZ's incentive framework, one-stop investment facilitation, and strategic infrastructure.

Abang Johari said the SEZ will reposition Sibu into a modern growth engine for central Sarawak, driven by high-value manufacturing, downstream processing, agro-industry, logistics, and the green economy.

"We will now work closely with relevant federal ministries and agencies towards implementing this flagship initiative, making the Sibu SEZ a model for regional economic transformation," he said.

Beyond boosting domestic and foreign investment, the SEZ is expected to improve connectivity between Sibu, Bintulu, Mukah, and Kapit, spreading economic development across the Rajang corridor.

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