Trade & Investment

An abundant supply of affordable energy and financial incentives are making Sarawak an increasingly popular destination for foreign investment, which is changing the shape of the state’s economy. Powered by ample, inexpensive electricity generated by a string of new hydroelectric power plants and acres of greenfield sites, the epicenter of new investment is the Sarawak Corridor of Renewable Energy. Lured in by a wave of generous financial incentives, investors from across Asia have been signing on to produce a wide array of products ranging from aluminium ingots to processed foods. The already robust trade ties within the region are expected to continue to grow as investments bear fruit in terms of increased manufacturing output, creating a ready supply of goods to trade just as the further reduction to trade barriers within ASEAN opens up the market, with a special emphasis on the East ASEAN Growth Area, in which Malaysia is included.

This chapter contains a viewpoint from Xi Jinping, President of China; and interviews with Lim Jock Seng, Minister of Foreign Affairs and Trade II of Brunei Darussalam; and Le Luong Minh, Secretary-General, ASEAN.