Kuching, November 11, 2024 – Sarawak is on track to achieve its highest-ever revenue collection in 2025, with an expected total of RM14.2 billion, according to Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg. This ambitious target marks a significant milestone for the state and reflects its ongoing economic growth.
Speaking at the State Legislative Assembly (DUN) while tabling the 2025 State Budget, Abang Johari outlined the sources of the projected revenue. A significant 44 percent, or RM6.2 billion, will come from tax revenues, with the State Sales Tax (SST) contributing the largest share of RM5.1 billion. Of this, RM4.1 billion will be derived from crude oil, liquefied natural gas, and other petroleum products, while RM820 million will come from crude palm oil and palm kernel oil.
Other key tax sources include RM75 million from lottery, RM60 million from aluminium products, RM29 million from timber products, and RM6 million from coal. Additionally, the state expects RM620 million from raw water royalties, RM100 million from forest royalties, timber premiums, and tariffs, and RM422 million from mining royalties and land rents.
Abang Johari also highlighted that non-tax revenue, which is projected at RM7 billion or 49 percent of the total, will play a crucial role in meeting the target. This will primarily come from compensation for oil and gas rights, dividend income, interest income, and land premiums. Additionally, the federal government’s decision to double the Special Grant for Sarawak to RM600 million from RM300 million will contribute an estimated RM937 million in federal grants and reimbursements.
The 2025 State Budget, which allocates RM13.7 billion for ordinary expenditure, is expected to generate a surplus of RM486 million, marking a new high in Sarawak’s fiscal history. “This budget reflects the success of our revenue reengineering strategies and prudent financial management. We are making substantial investments in infrastructure while prioritizing the well-being of the rakyat,” Abang Johari remarked.
The record-breaking revenue forecast for 2025 underscores Sarawak’s resilient economy and its continued focus on sustainable growth and development.