KUCHING: Sarawak is keen to establish an onshore international financial centre as part of a long-term strategy to position the state as an investment and financial gateway in the region, says Tan Sri Abang Johari Openg.
The Sarawak Premier said the proposed centre will not replicate existing financial centres but will look into developing a distinctive proposition based on the state’s economic strengths and emerging opportunities.
These include sustainable and green finance, infrastructure financing, investment management, Islamic finance and digital financial services to support Sarawak’s development agenda.
“This model would make the Sarawak Onshore International Financial Centre an instrument of Sarawak’s economic transformation while attracting foreign capital and specialised financial services,” he said when tabling the 2027 state budget in the Sarawak Legislative Assembly yesterday.
Abang Johari said the state government will undertake a feasibility study to determine the appropriate positioning, regulatory framework, institutional structure and implementation pathway for the centre.
“This will include benchmarking against established global financial centres such as Singapore, Shanghai and Dubai and engaging with the Federal Government and relevant regulatory authorities,” he said.
Abang Johari tabled a RM14.845bil budget for next year, which will generate a surplus of RM246mil against revenue projected to reach a record RM15.091bil.
He said the state’s highest-ever revenue, which had more than doubled over the past decade, was testament to the government’s commitment to safeguard financial sustainability.
Of the budget total, RM5.747bil or 39% is allocated for operating expenditure while RM9.098bil (61%) will be appropriated to the Development Fund Account.
On the state’s higher revenue, he said the increase comes in part from the revision of the Federal Government’s special grant from RM600mil to RM1.5bil effective this year as an interim measure pending a formula to be agreed upon by both parties.
