KUCHING: Sarawak is launching comprehensive reforms in state-owned enterprise governance and public financial management through a new three-year partnership with the World Bank and the federal government.
Premier Tan Sri Abang Johari Tun Openg stated this agreement represents a turning point for Sarawak as it transforms its SOEs and modernises financial management according to international standards.
He emphasised that state-owned enterprises will play a crucial role in delivering the state’s development objectives during his keynote address at the memorandum of agreement signing ceremony.
Abang Johari announced Sarawak will introduce Malaysia’s first state ownership policy to establish clear principles for the government’s role as an accountable shareholder.
The state will also adopt a corporate governance code for SOEs and implement a digital performance measurement framework to track strategic, financial and socio-economic achievements.
Sarawak will strengthen public financial management by aligning budget resources with policy priorities through results-based budgeting across the state government.
The Premier affirmed that stronger governance and modern financial management will establish the foundation for sustainable prosperity in Sarawak.
He described the World Bank partnership as ensuring Sarawak becomes a model of accountability, financial resilience and inclusivity beyond being resource-rich.
Abang Johari later told reporters the state ownership policy involves consolidating and safeguarding state assets through prudent management and strong governance.
He stressed immediate rectification of weaknesses identified by the Auditor-General represents essential accountability and good governance.
Further details about these reforms will be explained during the 2026 state budget presentation at the State Legislative Assembly next month.
World Bank Division Director for the Philippines, Malaysia and Brunei Dr Zafer Mustafaoglu praised Sarawak’s bold leadership in reforming SOEs and strengthening economic governance.
He noted these reforms are crucial for ensuring prosperity is broadly shared among Sarawakians after achieving high-income status at the state level.
The World Bank will support Sarawak with global expertise and proven best practices throughout this three-year collaboration.
Abang Johari witnessed the memorandum exchange between Sarawak State Financial Secretary Datuk Seri Dr Wan Lizozman Wan Omar, Federal Finance Officer Leonard Wilfred Yussin and Zafer.
This collaboration builds on earlier engagement between Sarawak and the World Bank that began with analytical studies on SOEs in 2022.
The partnership has evolved to provide targeted technical expertise, capacity-building and advisory support for SOE transformation.
Results-based budgeting will become a cornerstone of Sarawak’s governance framework through this strategic partnership.
Abang Johari concluded these reforms will deliver tangible benefits including improved job opportunities and inclusive development in rural connectivity, education and skills enhancement for Sarawakians. – Bernama