KUCHING (Nov 5): Sarawak’s high-income status by the World Bank reflects the state’s commitment to attract foreign and domestic investment in the energy-based industrial sector, said World Bank Malaysia economist leader Apurya Sanghi.

He said the World Bank acknowledges Sarawak’s capability as one of the top four economic contributors in the country.

“Some were surprised by the news that Sarawak has reached high-income status this year.

“I had to say it should not have been. Because, according to the World Bank, Sarawak is already high-income.

“The reason why I said it should not be a surprise is because Sarawak has been among the top four income states and territories in Malaysia for quite some time,” he said.

Apurya said this during a plenary forum on ‘Investment Opportunities in Borneo’ at the International Borneo Awards 2023 Gala Dinner and presentation ceremony here Friday night.

He also highlighted that having autonomy over natural resources would not only boost investor confidence but also provide space for Sarawak to diversify its revenue.

However, he opined that this needs to be deliberated through a legal framework.

“I should also say that Sarawak, by having more control over its resources and clarification on regulations, can attract even more investment today, especially in how Sarawak manages its resources.

“For example, the Sarawak service sector holds the largest share, about 35 per cent of the economy, followed by manufacturing at 26 per cent, mining and quarrying, agriculture construction, tourism, and so on.

“In short, despite the need for further work, Sarawak’s economy is already reasonably diversified.

“So these factors, as we put together – better public revenue, more control over the resources, a reasonably diversified economy, and a stable policy and political environment – are the keys to pulling Sarawak to high-income,” he said, adding that another important factor that helps investors gain confidence is political stability.

“The political stability environment in Sarawak would translate to high investor confidence. As we all know, a stable policy is what investors, both foreign and domestic, are looking for.

“Sarawak has been able to attract quite a few investments, and this is built on the platform of political stability. And I think this is where Sarawak stands out,” he added.