Sarawak has entered into a three-year agreement with the World Bank and Malaysia’s Federal Government to improve governance in State-Owned Enterprises (SOEs) and public financial management. The partnership focuses on introducing a new State Ownership Policy, establishing the Sarawak Corporate Governance Code for SOEs, and implementing results-based budgeting across the state government.
Premier of Sarawak, The Right Honourable Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg, commented on the initiative: “This agreement marks a turning point for Sarawak. 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.”
The reforms aim to ensure that effective management of public resources will lead to long-term economic growth and broader opportunities for residents. Improved SOE performance and better economic governance are expected to help direct resources toward inclusive development efforts such as rural connectivity, education, and skills development.
World Bank Division Director for the Philippines, Malaysia, and Brunei, Zafer Mustafaoğlu stated: “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 ongoing collaboration between Sarawak and the World Bank since 2022. Previous efforts included analytical studies on SOEs and early steps towards implementing results-based budgeting. The World Bank continues to offer technical expertise, institutional capacity-building, and advisory support as part of this expanded partnership.