Sarawak is making rapid strides in developing a future-ready digital economy, driven by innovation, smart technologies, and collaborative governance. Through strategic investments and multi-sector cooperation, the state is reshaping how businesses operate, how services are delivered, and how communities interact with digital tools. Rather than being a mere shift in infrastructure, this transformation is a long-term blueprint aimed at improving economic resilience, fostering inclusivity across urban and rural zones, and strengthening Sarawak’s global competitiveness.
Visible Gains and Economic Growth
The effects of this digital momentum are already measurable. In 2024, Sarawak saw a significant increase in visitor arrivals, reaching 4.83 million – a growth of 22.95% compared to the previous year. This influx contributed RM12.45 billion to the economy, showing how digital tools in tourism – such as e-booking, mobile-friendly itineraries, and smart promotion – can boost performance in traditional sectors. As the state moves forward, it is aiming for a bold target: to have 20% of its GDP, or RM56.4 billion, driven by digital activities by 2030.
To further illustrate Sarawak’s progress, the following table outlines key indicators that reflect the state’s ongoing commitment to digital transformation.
Key Statistics Reflecting Sarawak’s Digital Transformation Progress by 2025
| 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 SME Support Allocation (2024) | RM204 million |
| Telco Towers Built (2024) | 4,581 towers |
| 5G Sites Activated (2024) | 587 sites |
| High-Speed Connectivity Coverage Target (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.
Empowering SMEs for Digital Readiness
The Sarawak Digital Economy Corporation (SDEC) has been pivotal in enabling digital readiness. In 2024 alone, over RM204 million was invested to support the digital transformation of 37,599 SMEs. These investments include training, digital grants, software adoption assistance, and cloud infrastructure subsidies – each carefully tailored to meet the evolving needs of local entrepreneurs.
Among its flagship efforts is the SME Digitise! initiative, a joint programme with Yayasan Peneraju. It provides training and resources for small businesses to modernise operations, digitise sales, and manage customer engagement online. Early results are promising, with participating SMEs reporting revenue increases of up to 30% after implementing the tools provided.
Bridging Infrastructure and Access Gaps
Despite this progress, barriers still hinder widespread adoption. Many small business owners, particularly in rural or remote areas, continue to face digital literacy challenges. Some are unfamiliar with tools such as digital payment gateways or cloud systems, while others express concerns about cybersecurity, upfront costs, or return on investment. Without consistent training and post-workshop mentoring, even the best digital solutions may go underutilised.
Adding to this complexity is Sarawak’s challenging geography. Although more than 4,500 new telecommunication towers and over 580 5G sites have been established across the state by the end of 2024, some interior regions still lack stable internet access. The government has set a target to provide 94% of the population with high-speed connectivity by 2025, but reaching this figure requires aggressive rollout, especially in less-developed districts.
Partnerships Fueling Innovation
To overcome these challenges, Sarawak has leaned on both domestic and international collaborations. One such partnership was formalised in March 2025 between SDEC and Grab Malaysia. This initiative empowers local SMEs to leverage Grab’s digital ecosystem – enabling them to accept e-wallet payments, manage deliveries, and gain visibility on e-commerce platforms. It also aims to train merchants and improve customer experience through smart mobility integration.
Additionally, Sarawak has attracted global players like Amazon Web Services (AWS), which pledged a US$6.2 billion investment in Malaysia. The Sarawak government is actively lobbying for a significant share of this investment to go towards enhancing digital access in rural communities. With stronger cloud infrastructure and AI tools, sectors like agriculture, education, tourism, and healthcare stand to benefit enormously.
Meanwhile, platforms like Kintone are also playing a crucial role. By offering low-code solutions that simplify administrative tasks, the platform helps local businesses scale without needing deep IT knowledge. Such tools are vital in making digital transition not just a vision, but a practical, sustainable reality.
Looking Ahead: Building an Inclusive Digital Economy
Looking ahead, inclusivity must remain at the core of Sarawak’s digital blueprint. Beyond one-time grants or workshops, there must be an emphasis on continuous capacity-building. Rural entrepreneurs need accessible mentors, locally relevant content, and tech solutions suited to their realities. Digital progress must be measured not just by infrastructure numbers, but also by real-world outcomes: higher business survival rates, better service delivery, and new job creation.
Government agencies, private partners, and community networks must collaborate to track adoption metrics transparently and course-correct when needed. Only with consistent evaluation can Sarawak ensure that the benefits of technology reach everyone – not just those in cities or large enterprises.
In embracing digital transformation, Sarawak is not merely catching up with global trends. It is setting a powerful example of what a locally driven, inclusive digital economy can look like. As connectivity deepens and solutions become more tailored, Sarawak’s journey holds valuable lessons for other emerging regions navigating the digital shift.
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/
