Sarawak pushes Free Zone expansion to strengthen industrial ecosystem
Datuk Majang Renggi – File photo
KUCHING (May 13): Sarawak’s plan to expand its port-based industrial and logistics ecosystem has taken a major step forward with the approval of a Free Zone for Samalaju Port, while plans for similar zones in Miri, Kuching and Bintulu are also advancing, said Datuk Majang Renggi.
The Deputy Minister for Infrastructure and Port Development said the Free Zone application for Samalaju Port was approved by the Ministry of Finance Malaysia (MoF) on April 14 this year.
As for Miri Port, Majang said the application had been submitted to MoF on Feb 19 and is currently under consideration, while proposals involving Kuching Port and Bintulu Port were still being refined.
“The development of Free Zone areas is believed to increase value-added activities and attract investments in export-oriented industries,” he said when responding to a question from Kennedy Chukpai Ugon (GPS-Murum).
On overall port development, Majang said the state government is actively implementing initiatives in line with the economic growth targets under Post Covid-19 Development Strategy (PCDS) 2030.
With the establishment of the Sarawak Ports Authority (SPA), he said the state government is undertaking several strategic measures.
He said SPA will serve as the single regulatory body for all ports in Sarawak, replacing existing port authorities including Bintulu Port once the official handover from the federal government is finalised.
He added that the state government is also corporatising port authorities in phases to strengthen governance, operational efficiency, security and financial management.
“At the same time, SPA will coordinate an integrated port development plan based on a port clustering approach to optimise the role and strengths of each port.
“This aims to reduce overlapping functions while strengthening the logistics chain and encouraging the development of hinterland areas surrounding major ports,” he said.
Among the major projects currently underway is the Dredging and Associated Works Project at Kuala Baram by the Miri Port Authority, which is expected to be completed in Oct 2026.
Majang also said the establishment of the Borneo Oil and Gas Supply Base was further strengthening Bintulu’s role as a strategic hub supporting Sarawak’s oil and gas industry.
Meanwhile, he revealed that the Sarawak government, in collaboration with Petros, was actively planning a mega project at Tanjung Embang involving the construction of a deep-sea port and gas terminal.
“The first phase is expected to begin operations in 2032,” he said.
On the possibility of developing inland ports in border areas, Majang said the Sarawak government viewed inland ports as a long-term approach to strengthen logistics and support cross-border trade growth.
He said the Sarawak and federal governments were continuing discussions with Indonesian authorities to strengthen cross-border economic and trade activities at the Tebedu-Entikong ICQS Complex.
However, he stressed that the establishment of inland ports would depend on actual needs and the economic potential of the respective areas.
“The Sarawak government’s current main focus is to boost bilateral economic cooperation with neighbouring countries through platforms such as BIMP-EAGA (Brunei Darussalam–Indonesia–Malaysia–Philippines East Asean Growth Area) and Sosek Malindo (Sosial Ekonomi Malaysia-Indonesia) to coordinate policies, procedures and cross-border facilities covering trade, logistics and security aspects,” he added.