With strategic direction, cross-sector partnerships, and targeted investments, the state is reshaping how businesses, government, and communities operate in an increasingly digital world. The transformation is more than a technological upgrade – it is a strategic effort to enhance economic resilience, regional inclusivity, and long-term competitiveness.
Impressive Progress in Numbers
The effects of digitalisation can be seen clearly in recent figures. In 2024, Sarawak recorded 4.83 million tourist arrivals, a 22.95% increase from the year before. This influx contributed RM12.45 billion to the economy. The state’s goal of generating 20% of its GDP – about RM56.4 billion – from digital activities by 2030 is well underway, supported by infrastructure development and SME-focused programmes.
To give context to these developments, here is a summary of key figures:
Key Digital Economy Metrics in Sarawak
| Indicator | Value/Update |
| Tourist Arrivals (2024) | 4.83 million (+22.95%) |
| Tourism Revenue (2024) | RM12.45 billion |
| Targeted Digital GDP Contribution (by 2030) | RM56.4 billion (20% of GDP) |
| SMEs Supported via Digital Grants (2024) | 37,599 enterprises |
| Total Allocated SME Support Budget (2024) | RM204 million |
| Telco Towers Built (2024) | 4,581 towers |
| 5G Sites Activated (2024) | 587 sites |
| High-Speed Connectivity Coverage Target (by 2025) | 94% of population |
Table 1 presents key statistics highlighting Sarawak’s recent advancements in digital infrastructure, SME support, and economic targets, reflecting the state’s ongoing commitment to inclusive digital transformation by 2025.
SMEs at the Heart of Transformation
The Sarawak Digital Economy Corporation (SDEC) is spearheading various initiatives to ensure that the digital transition reaches all corners of the state. The SME Digitise! programme, launched in partnership with Yayasan Peneraju, aims to provide local entrepreneurs with the tools and knowledge to modernise their businesses. Participants in this programme have reported revenue increases of up to 30% after integrating digital solutions into their workflows.
Despite funding and resources being available, challenges remain. Many SMEs continue to struggle with digital literacy, especially among older or rural business owners. The complexity of digital tools, fear of cybersecurity threats, and uncertainty about costs have caused many to hesitate. Even with support, without clear training and mentoring, some business owners fail to see the benefits of digitisation in their day-to-day operations.
Geography and Infrastructure Challenges
Sarawak’s vast landscape presents unique logistical hurdles. Though the state is aggressively expanding its digital infrastructure – with thousands of towers and hundreds of 5G sites already in place – many rural communities still lack reliable internet. While the state’s target of 94% high-speed internet coverage by 2025 is ambitious, it will require accelerated implementation to ensure no region is left behind.
Collaborations and Strategic Partnerships
To overcome these challenges, the government is forging strong partnerships with tech providers and investors. One such partnership is between Grab Malaysia and SDEC, announced in March 2025. This initiative supports the Digital Economy Blueprint 2030 by helping local businesses go online, manage digital payments, and benefit from new delivery platforms and mobility services.
Another notable development is Sarawak’s engagement with Amazon Web Services (AWS). The state welcomed AWS’s US$6.2 billion national investment and has requested a portion be channeled toward rural connectivity and cloud infrastructure. This could significantly boost Sarawak’s capacity in smart agriculture, tourism, education, and administration.
Meanwhile, Kintone, a low-code business solution provider, is working directly with Sarawakian SMEs to help them streamline operations through affordable and user-friendly platforms. These kinds of partnerships are essential in making digital transformation practical and scalable for small businesses.
The Way Forward
While the progress is promising, Sarawak’s digital transformation must continue to be inclusive. More targeted outreach is needed to support digitally underserved communities, especially in remote areas. Training must be tailored to business sectors, and support must go beyond one-off workshops to include continuous coaching.
The government and its partners must also track performance closely. Adoption rates, connectivity coverage, and business outcomes should be measured transparently. By doing so, policies and support schemes can be adjusted quickly to meet real-world needs.
Sarawak is not just keeping up with global trends – it is setting a model for regional innovation. However, a truly successful transformation will only happen when every SME, regardless of size or location, has the tools, knowledge, and infrastructure to participate meaningfully in the digital economy.
References
- https://www.sarawaktribune.com/grabs-tech-to-elevate-businesses/
- https://www.dailyexpress.com.my/news/253418/grab-to-bolster-sarawak-digital-transformation/
- https://www.sarawaktribune.com/grabs-tech-to-elevate-businesses/
- https://www.sarawaktribune.com/robust-plan-to-shift-to-technology-driven-economy/
- https://www.sarawaktribune.com/rm3-5b-investment-in-digital-technology-paying-dividends/
- https://www.thestar.com.my/news/nation/2025/05/05/sarawak-welcomes-aws-investment-to-drive-digital-transformation-by-2030
- https://www.sarawaktribune.com/uggah-strategic-tie-ups-to-shape-of-sarawaks-digital-economy/
- https://sdec.com.my/web/2024/11/08/dynamik-technologies-and-sdec-partner-up-to-propel-borneos-digital-transformation/
- https://borneobulletin.com.bn/sarawak-embraces-ai-satellite-tech-for-transformation/
- https://asianewstoday.com/sarawak-smes-still-struggle-digitally/
