ASIATODAY.ID, KUCHING — In a landmark move to future-proof its economy, Sarawak has signed an agreement with the World Bank and Malaysia’s Federal Government, setting the stage for sweeping reforms in State-Owned Enterprise (SOE) governance and public financial management.
This three-year partnership aims to strengthen public resource management by improving SOE governance and aligning budget resources with key policy priorities.
Key initiatives include the development of a new State Ownership Policy and the Sarawak Corporate Governance Code for SOEs, as well as the rollout of results based budgeting across the State Government. These efforts will ensure more effective, transparent, and accountable management of public resources.
“This agreement marks a turning point for Sarawak,” said the Premier of Sarawak, The Right Honourable Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg, October 2, 2025.
“With stronger governance and modern financial management in line with international best practices, we are laying the groundwork for sustainable prosperity. Our partnership with the World Bank ensures Sarawak is not only resource-rich but also a model of accountability, financial resilience, and inclusivity.”
These reforms will deliver tangible benefits for Sarawakians. By transforming financial management and safeguarding revenues, Sarawak is ensuring today’s prosperity will translate into sustainable growth and opportunities for future generations, including higher quality jobs.
At the same time, stronger SOEs and better economic governance will enable Sarawak to channel resources into inclusive development – from rural connectivity to education and skill – so that all Sarawakians can share in the State’s growth.
World Bank Division Director for the Philippines, Malaysia, and Brunei, Zafer Mustafaoğlu added, “Sarawak is demonstrating bold leadership in reforming SOEs and strengthening public financial management and economic governance. As having achieved high-income status at state level, these additional reforms are critical to sustaining inclusive growth, enhancing accountability and ensuring that prosperity is broadly shared among Sarawakians. The World Bank is proud to support Sarawak with global expertise and proven best practices.”
This agreement builds on the close collaboration between Sarawak and the World Bank since 2022, which began with a series of analytical studies on SOEs and for the implementation of results-based budgeting (RBB) and has grown into a strategic collaboration.
The World Bank continues to provide Sarawak with targeted technical expertise, institutional capacity-building and advisory support to drive SOE reforms, strengthen public financial management and embed RBB as a cornerstone of the State’s governance framework. (AT Network)
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