Accessing regional opportunities: How S’pore investors can tap Sarawak’s green energy and other growth sectors
From digital economy to eco-tourism, the East Malaysian state’s upcoming trade conference will showcase emerging trends and potential investments
FROM pioneering hydrogen buses in Kuching to a new hydrogen production hub in Bintulu, Sarawak’s plans to become the region’s clean energy hub are steadily taking shape.
In June last year, Sarawak launched South-east Asia’s first electrolyser assembly and distribution facility, establishing the critical infrastructure backbone for a hydrogen economy.
Two flagship clean hydrogen projects, H2ornbill and H2biscus, have already drawn substantial commitments from global investors.
The state sits on South-east Asia’s most abundant hydropower reserves and unlimited water resources – the two essential ingredients for cost-effective green hydrogen production.
Unlike blue hydrogen, which is derived from fossil fuels and produces emissions, green hydrogen is generated entirely through renewable energy and electrolysis, creating a zero-carbon product that meets stringent environmental standards.
With this green advantage, Sarawak is positioning itself as a rising clean energy hub – and investors will get a first-hand look at its plans at an upcoming investment fair.
Sarawak’s Premier Abang Johari Tun Openg will lead a high-level delegation to the two-day Business Conference and Trade Exhibition on Oct 16 and 17 at Suntec Singapore Convention and Exhibition Centre. The business conference is part of the inaugural Sarawak Mega Fair.
Hydropower and other green sources already account for a significant share of Sarawak’s electricity. The East Malaysian state aims to reach 60 per cent to 70 per cent renewable energy share of electricity generation by 2035 and is exploring further exports to Singapore through an Asean grid connection. There have been reports that Sarawak is poised to make its first export of green hydrogen in solid form to Singapore.
Says Sarawak Trade and Tourism Office Singapore (STATOS) chairman Tan Sri Datuk Amar Haji Mohamad Morshidi Abdul Ghani: “Sarawak is uniquely positioned to harness the opportunities of the future economy. With our abundant renewable energy resources, we are advancing as a hub for sustainable green energy that powers not only local industries but also global partners.
“At the same time, our commitment to building a robust digital economy is opening new pathways for innovation, investment and talent development. Together, these strengths make Sarawak an exciting frontier for businesses seeking growth in a sustainable and connected world.”
Sarawak’s solutions and plans could open doors for businesses in Singapore – from sustainability practices in energy and infrastructure to financing and technology – as the global transition to net zero gathers pace.
Access to growing sectors
Organised by the Sarawak government with the Ministry of International Trade, Industry and Investment, and Sarawak Trade and Tourism Office in Singapore as co-secretariats, the Sarawak Mega Fair 2025 is the biggest of its kind to be held outside of Malaysia.
The Business Conference and Trade Exhibition programme will spotlight opportunities in emerging sectors such as green energy, which combines with other sustainable practices to inform a large part of Sarawak’s economic growth plans.
As part of that bigger picture, Sarawak is seeking partnerships in artificial intelligence (AI), cyber security and digital infrastructure to modernise and improve on key growth sectors, including manufacturing and sustainable agriculture.
Progress in the digital infrastructure is palpable. A prime example is the introduction in April 2025 of Keteq AI, the world’s first AI-based power conversion device that can detect and correct disturbances automatically in under 0.1 milliseconds.
It can be used widely, including in smart grids, predictive maintenance and mission-critical control systems.
Keteq AI follows the state government’s commitment of an additional RM450 million (S$137 million) to upgrade the electricity infrastructure across the state. By addressing the energy efficiency needs of industries, key sectors can operate more smoothly.
This comes as a boon for power-heavy sectors like manufacturing, which in Sarawak is moving into higher-value activities such as semiconductors and digital engineering. This strategic direction is exemplified by a new RM2 billion polysilicon plant in Bintulu.
Further leveraging the digital economy, in a bid to modernise the use of its extensive land and marine resources, the Sarawak Artificial Intelligence Centre will work on agriculture as its first key initiative. The AI for Smart Agriculture programme will use AI-powered data analytics to optimise crop yields and promote sustainability in agriculture.
This commitment comes after Sarawak introduced 20 digital agriculture technology solutions last year for crop cultivation and another key sector, aquaculture. Tied to this is the state’s focus on halal food production as another way to enhance food security and open new export markets.
Investing in strong economic fundamentals
Beyond energy and industry, Sarawak is leveraging its natural and cultural assets. With sites such as the Unesco World Heritage-listed Mulu and Niah national parks, and Kuching’s recognition as a Unesco City of Gastronomy, eco-tourism and culinary tourism are central to its growth strategy.
Tourism receipts rose by nearly 25 per cent in 2024, and the state aims to attract five million visitors this year, buoyed by strong demand from Singapore travellers.
Investors can look forward to these emerging sectors contributing actively to the growing Sarawak economy.
Gross domestic product rose by 3.9 per cent to RM148.2 billion in 2024, making Sarawak the fourth largest state economy in Malaysia. Construction grew by nearly 19 per cent last year, while mining and quarrying remain strong contributors.
In the last three years, Sarawak attracted around RM67.1 billion of approved investments in services, manufacturing and primary sectors, of which 36 per cent, or RM24.3 billion, came from foreign sources.
As a sign of long-term commitment to strategic and stable growth, Sarawak’s sovereign wealth fund will start deploying capital later this year to ensure the state’s revenue, which is largely derived from commodity-based sources, can be converted into financial assets.
STATOS chief executive officer Chew Chang Guan notes: “Sarawak is open for business. Sarawak today is different – we are moving forward with very stable politics, attractive incentives for investors and business owners and a clear vision for growth.”
Moving forward, Sarawak’s connectivity with the rest of South-east Asia will be further boosted with the launch of the new state airline, AirBorneo, next year. This will potentially create new trade and travel corridors for businesses looking to expand into East Malaysia and beyond.
More than business
- Beyond trade and investment, the Sarawak Mega Fair will showcase the state’s culture and creativity.
- From Oct 16 to 17, the Business Conference and Trade Exhibition will take place at Suntec Singapore Convention and Exhibition Centre (Level 4).
- Running in parallel, from Oct 16 to 19, the Sarawak Carnival and Gastronomy at Suntec City Atrium (Convention Centre, and Tower 1 and 2) will bring Sarawak’s flavours and artistry to life.
- More than 50 exhibitors, including food vendors, artisans and performers, will offer visitors a taste of the state’s rich culinary and artistic traditions.
- Highlights include live cooking sessions and samplings of signature dishes.
Register for free entry to the Sarawak Mega Fair 2025 – Business Conference and Trade Exhibition.
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