For the people of Sarawak, the upcoming year is expected to bring significant economic growth, with the state aiming to earn a record-breaking RM11 billion in income. This growth will have a direct impact on the lives of Sarawak’s residents, with increased funding for development programs and rural areas. Approximately 48% of the anticipated tax revenue for 2023, amounting to RM5.25 billion, will come from taxes, according to Sarawak Premier Tan Sri Abang Johari Openg.
The state’s revenue is expected to come from a variety of sources, including RM4.2 billion from the state sales tax, RM3.2 billion from crude oil, liquified natural gas (LNG), and petroleum products, and RM850 million from crude palm oil (CPO) and crude palm kernel oil. Additionally, the state will receive revenue from the lottery, aluminum products, coal, and tires, amounting to RM60 billion, RM60 billion, RM22 billion, and RM3 billion, respectively. The state is also expected to receive RM550 million from the raw water royalty and RM287 million from the forest royalty, wood premium, and tariffs.
Economic Growth and Development
The state government’s anticipated non-tax revenue for 2023 is roughly RM5.5 billion, including RM2.34 billion in cash compensation in lieu of oil and gas (O&G), RM1.86 billion in dividend income, RM650 million in interest income, and RM400 million in land premium. Other sources of revenue include RM129 million from licenses, service fees, permits, leases, and RM120 million from cash compensation in place of import and excise duty on petroleum goods. The state is also expecting federal funds and reimbursements totaling RM265 million.
The predicted total regular expenditure for the upcoming year is around RM10.8 billion, with the state budget for 2023 continuing to be development- and rural-focused. The budget will include RM7.51 billion for development programs, of which RM4.54 billion, or 60%, will be used to develop rural areas. This increased funding is expected to have a positive impact on the lives of rural residents, with improved infrastructure and services.
Impact on Communities
The state’s economy is expected to rise by 5% to 6% in 2023, according to Tan Sri Abang Johari Openg. This growth will have a direct impact on the communities of Sarawak, with increased economic opportunities and improved living standards. The state’s revenue for 2022 was also higher than initially projected, with almost RM9.7 billion, or 95% of the projected revenue, received by the state as of October 31, 2022.
The estimated amount for routine expenditure in 2022 was also improved by RM60 million, or 2.5%, to RM10.7 billion from RM10.65 billion. This increase in funding will have a positive impact on the state’s ability to provide services and infrastructure to its residents. The state’s focus on development and rural areas is expected to continue in 2023, with a surplus of RM238 million predicted.
Looking Ahead
As the state of Sarawak looks to the future, it is clear that the upcoming year will be significant for the state’s economy and residents. With a record-breaking revenue target and increased funding for development programs, the state is poised for growth and improvement. As the state continues to develop and expand its economy, it will be important to watch how the increased revenue is allocated and how it impacts the lives of Sarawak’s residents. The state’s ability to balance its budget and provide services to its residents will be crucial in the coming year, and it will be important to monitor the state’s progress towards its economic goals.
