KUCHING (Oct 12): The 2027 Sarawak Budget is projecting a record revenue of RM15.091 billion – the highest ever to be recorded by the state.

Tabling the Supply (2027) Bill, 2026, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said this projected revenue marked an increase of 16 per cent compared to the 2026 estimate of RM13.049 billion.

“With a projected revenue of RM15.091 billion, the highest ever expected to be recorded by the state, and total ordinary expenditure of RM14.845 billion, the 2027 Sarawak Budget is expected to generate a surplus of RM246 million,” he told the august House on Monday.

Abang Johari said this is not merely a statistic but represented an increase of more than two-folds within a period of 10 years, compared to the 2017 revenue of RM6.864 billion.

He said such remarkable growth is a testament to the state government’s continuous effort and determination to safeguard the long-term financial sustainability of Sarawak.

The breakdown of the 2027 revenue estimates amounting to RM15.091 billion is as follows:

1. Tax Revenue totalling RM6.4 billion or 43 per cent of the total expected revenue in 2027, comprising

(a) RM4.6 billion from State Sales Tax, of which RM3.4 billion comes from crude oil, liquefied natural gas and other petroleum products; RM995 million from crude palm oil and crude palm kernel oil; RM70 million from lottery; RM80 million from aluminium products; RM32 million from ferro-alloys; RM20 million from timber products; while the remaining RM16 million from polysilicon;

(b) RM1.3 billion from raw water royalty;

(c) RM193 million from forestry; and

(d) RM317 million from mining royalties, land rents, and others.

2. Non–Tax Revenue is estimated at RM6.7 billion or 45 per cent, mainly derived from

(a) RM2.57 billion from cash compensation in lieu of oil and gas rights;

(b) RM2.6 billion from dividend income;

(c) RM746 million from interest income;

(d) RM350 million from land premium;

(e) RM120 million from cash compensation in lieu of import and excise duties on petroleum products; and

(f) RM355 million from others, including licences, service fees, permits and rentals.

3. Non–Revenue Receipt is expected to be RM34 million, mainly from liquidated ascertained damages, compounds, fees and penalties.

4. Federal Grants and Reimbursements are projected to reach RM1.87 billion mainly from the interim payment of Special Grant amounting to RM1.5 billion.

The 2027 Sarawak Budget proposes a total ordinary expenditure of RM14.845 billion.

Of this amount, RM5.747 billion is allocated for operating expenditure, while RM9.098 billion is appropriated to the Development Fund Account.

This appropriation serves to strengthen the balance carried forward in the Development Fund Account, ensuring adequate financing for the 2027 Development Expenditure, which has been budgeted at RM10.098 billion.

The operating expenditure of RM5.747 billion is allocated to finance the following expenses:

1. RM1.421 billion or 25 per cent for personnel emoluments;

2. RM2.024 billion or 35 per cent for supplies and services;

3. RM1.976 billion or 34 per cent for grants and fixed payments, which includes operating grants to Statutory Bodies and Local Authorities, servicing of public debts and payments of gratuities, pensions, and scholarships, including financial and welfare assistances;

4. RM134 million for procurement of assets;

5. RM192 million for other operating expenses.

Abang Johari said the RM10.098 billion for development purposes, representing an increase of RM826 million or 9 per cent from the original estimated development expenditure this year, is among the highest development budget, reflecting the state government’s firm commitment to fulfilling, and delivering the needs of Sarawakians.

“More than just figures, this significant allocation demonstrates the GPS government’s strong determination to make Sarawak a better place to live, a state that is prosperous and developed, where every Sarawakian can look forward to a brighter future.

“The 2027 Sarawak Budget is expected to deliver a surplus of RM246 million. This surplus shows that Sarawak is managing its finances wisely – meeting today’s needs while preparing for tomorrow.

“The government will continue to seek new ways to sustain our financial strength, ensuring resilience, and stability so that prosperity reaches every corner of Sarawak,” he added.

Themed ‘Together Building Prosperity and Securing Our Futures’, the 2027 Sarawak Budget fiscal framework rests upon five strategic pillars:

1. Advancing fiscal and structural reforms – to strengthen transparency, adaptability, and long-term stability of our financial systems.

2. Upholding prudent fiscal management – where every ringgit spent delivers measurable value to the rakyat and aligns with the state’s development priorities.

3. Adopting an expansionary stance to stimulate growth and domestic demand – through investments in infrastructure, education, human capital, research and development, innovation, digitalisation, and environmental sustainability.

4. Diversifying revenue streams – by investing in strategic industries, expanding the digital economy, and managing natural resources sustainably, thus empowering Sarawak to fund transformative projects that uplift livelihoods and achieve prosperity.

5. Promoting inclusive development and equitable wealth distribution – bridging regional disparities and ensuring that prosperity is shared across all communities in Sarawak.

The 2027 Sarawak Budget is designed to steer the state towards a high-income, sustainable, and inclusive economy by 2030 through the following five strategic goals:

1. Sarawak will evolve its economic frontier by raising household incomes, lifting productivity into higher-value activities, and ensuring wealth is broadly shared.

2. Sarawak will fortify the social floor by building responsive and targeted protection systems that elevate the well-being of the people.

3. Sarawak will secure fiscal resilience through prudent expenditure discipline, structural reforms, and revenue reengineering.

4. Sarawak will position itself as Asean’s green energy hub and a preferred investment destination.

5. Sarawak will monetise the green frontier by leveraging climate-change market frameworks and sustainable value chains to create new revenue streams and green jobs.

To operationalise these goals, the budget is structured across nine Strategic Thrusts:

1. Transforming and Diversifying Sarawak’s Economy – Sarawak will climb the value chains, foster high-value sectors, and broaden the economic base to reduce dependence on a narrow set of commodities to avoid the ‘middle income’ trap.

2. Promoting Investment and Strategic Industries – Sarawak will create an enabling regulatory and fiscal environment to attract domestic and foreign capital into priority industries.

3. Building High-Quality Education and Human Capital – Sarawak will invest in skills, vocational training and lifelong learning to prepare its workforce for the digital, advanced and green economy ensuring that it is future-ready.

4. Protecting and Sustaining Sarawak’s Natural Resources – Sarawak will uphold environmental stewardship and manage its resources sustainably that balance growth with conservation.

5. Bridging Development Gaps and Driving Rural Growth – Sarawak will close infrastructure and opportunity gaps between urban and rural areas ensuring inclusive, and balanced development.

6. Safeguarding the Rakyat’s Livelihood – Sarawak will strengthen social protection, welfare, and targeted support for vulnerable households preserving the people’s dignity and promoting economic empowerment.

7. Enhancing Culture, Sports, and Youth Development – Sarawak will nurture social cohesion, talent development, and youth engagement as pillars of long-term social capital.

8. Spurring Research, Technology, and Innovation – Sarawak will accelerate research and development (R&D), drive commercialisation, and advance technology adoption to raise productivity and create high-value jobs for a competitive and future-ready economy.

9. Institutionalising High-Performance Government and Fiscal Resilience – Sarawak will modernise public institutions, enhance service delivery, and embed performance-based budgeting and transparency, ensuring good governance and resilient fiscal management.