Forefront of sustainability

Gas as a transition fuel

Aligned to Malaysia's 2050 carbon-neutral goal and transitioning, such as halting building of new coal power plants and replacement with lower emission gas-fired power plants

Investing in new energy for Sarawak

Significant commitments in new energy projects including

  • Pioneering hydrogen economy projects in the region e.g., hydrogen-based transportation, and clean hydrogen for exports
  • Developing floating solar power plants as part of expanding solar energy mix

Abundance of renewable energy

Abundance of renewable energy where hydropower accounts for 75% of power mix, and aspirations to expand renewable energy exports within the region

 

 

Highly cost competitive

Industrial land

Average $5.00 per square feet for industrial land

Electricity tariffs

Industrial tariffs at $0.05 per kWh, cheaper than Peninsular Malaysia (by over 40%), and amongst the most competitive in Southeast Asia

Labor cost

Competitive labour costs, supported by close ties between industries and TVET institutions to ensure workforce relevance and readiness

Water tariffs

Industrial tariffs between $0.22 to 0.30 per 1000L, among the lowest across all states in Malaysia

Strategic geographic positioning

Gateway to Asia Pacific

Strategically positioned within the South China Sea which carries one-third of global maritime shipping

Proximity to high potential demand centres

Neighbouring Indonesia's Kalimantan region on Borneo Island, where the new capital city of the $1 Tril economy is proposed to relocate to by 2025

Stable and safe business environment

Stable and safe business environment, located in a tropical region outside of the Ring of Fire and free from natural disasters

 

Open for business, easy to do business

Easy to do business

Part of Malaysia's business ecosystem which ranked 12th globally on World Bank's Doing Business Index

Access to major markets

Access to 16 FTAs covering market of 3.9 Bil population, including MJEPA, ACFTA, RCEP and CPTPP*

Strong political stability

Strong political stability within the state of Sarawak

Business-friendly workforce

Access to skilled workforce with English language proficiency

Legal framework

Legal framework based on British system

 
*Free Trade Agreements include:
MJEPA - Malaysia-Japan Economic Partnership Agreement 
ACFTA - ASEAN-China Free Trade Agreement 
RCEP - Regional Comprehensive Economic Partnership 
CPTPP - Comprehensive and Progressive Agreement for Trans-Pacific Partnership

Industry-friendly infrastructure

Airports

7 main airports with international flights from Kuching and Miri

Pan Borneo highway

Access to >5,000km of road networks connecting Sarawak to Sabah, Brunei and Indonesia's Kalimantan region

Seaports

6 seaports including deep-sea ports in Bintulu (draft up to 14m) and Samalaju (draft up to 13.5m). Future deep-sea port to be developed in Kuching

Industrial zones/parks

~20 industrial parks spread across Sarawak covering heavy industries, hi-tech & electronics, food processing, timber-based industries, and others

Enriching lifestyle

Harmonious society

Diverse, harmonious and welcoming local population rich in culture, festivals and cuisine (i.e., 27 ethnic groups, 45 dialects)

Quality of life

Convenient and wholesome living with easy access to various international education institutions, and medical and health care facilities

Long-stay visas

Attractive long-term visa requirements such as 10-year Sarawak-Malaysia My Second Home passes

Valuing and conserving nature

Over 65 protected areas including nature reserves, wildlife sanctuary, and national parks such as UNESCO World Heritage Gunung Mulu National Park

Facilitative government incentives

Pending for Information & background photo

Facilitative Government Incentives

Pioneer Status

Qualified investors entering Sarawak (e.g., manufacturing sector) are eligible for tax exemptions on 100% of statutory income for a period of 5 years, beyond the 70% incentive cap provided by Federal Government of Malaysia.

An extension of up to 10-year period can be considered for highly strategic projects.

Investment Tax Allowances

Companies can claim 60% allowance on qualifying CAPEX incurred within 5 years of a new project. This can be used to offset 70% of statutory income each year.

Reinvestment Allowances

Existing companies (less than 1-year old) can also claim 60% allowance on qualified CAPEX to be offset against 70% of statutory income each year.

Flexible industrial land terms

Government provides flexible payment terms for up to 5 years. There is an opportunity to capture 30 to 50% rebate on the industrial land cost if a project is completed within specified period.

100% foreign equity ownership

Foreigners are allowed to hold 100% of equity ownership in manufacturing and selected services sectors.

Freedom of income repatriation

No restrictions on repatriation of capital, interests, dividends and profits generated from Sarawak operations.

Foreign investment protection

The Malaysian Government has signed Investment Guarantee Agreements with over 60 countries globally, to ensure that any foreign investments are protected against risk such as nationalisation and expropriation.


Major Investors In Sarawak Today

Shell Middle Distillate Synthesis

Shell Middle Distillate Synthesis

World’s first commercial Gas-to-Liquid plant in Bintulu, operating at 14,700 barrels per day of ultra-pure GTL products

ASEAN Bintulu Fertilizer

ASEAN Bintulu Fertilizer

Ammonia and urea plant in Bintulu with capacity of 445,500 and 742,500 tonnes per annum respectively

Sarawak PetChem Methanol Project

Sarawak PetChem Methanol Project

World-scale methanol plant in Bintulu with a capacity of 1.7 million tonnes per annum. The project is currently under construction, and is planned to begin operations in 2023

Elkem Sarawak

Elkem Sarawak

Located in Bintulu, Iwatani-SIG provides industrial gasses such as liquid Nitrogen and liquid Oxygen at 72,000 cubic meter per hour capacity

Iwatani-SIG Industrial Gases

Iwatani-SIG Industrial Gases

World leading supplier of Søderberg electrode paste with a plant in Samalaju producing 45,000 tonnes of electrode paste per annum

LONGi Solar

LONGi Solar

World’s largest solar-grade monocrystalline silicon producer with 3 vertically integrated manufacturing facilities in Kuching at 6GW of mono cell capacity

OCI Sarawak

OCI Sarawak

A leading global green energy and chemical company with a Samalaju plant producing 30,000 tonnes of polysilicon annually for the global market

Sakura Ferroalloys

Sakura Ferroalloys

Multinational ferroalloys JV based in Samalaju with a capacity of 107,000 tonnes of Ferro-Manganese and 67,000 tonnes of Silico-Manganese per annum

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