Transition

Sarawak's temporary timber royalty reduction offers essential relief to a distressed industry while safeguarding long-term sustainability goals and Premier Sarawak’s strategic vision for a diversified, low-carbon economic future.

Sarawak advances SDG and ESG via PCDS 2030, leveraging hydropower, hydrogen, and carbon capture to attract green investment. However, critical challenges persist in governance transparency, indigenous rights, social equity, and over-reliance on unproven technologies, threatening the credibility and inclusivity of its sustainability transition. This tension is further complicated by the legacy of its timber and oil palm sectors, which have drawn sharp local and international criticism but are now undergoing significant reform efforts aimed at aligning with global ESG standards.