News

Updated: 27/10/2026 06:01 PM

US50 Bln AI Investment In Sarawak Set To Bring Spillover Benefits To Sabah - Mustapha

KUALA LUMPUR, Oct 27 (Bernama) -- An investment worth US$50 billion (RM204 billion) in the artificial intelligence (AI) sector in Sarawak is expected to serve as a new catalyst for economic growth in the Borneo region, particularly through the creation of high-skilled job opportunities and broader economic spillover effects.

Minister in the Prime Minister's Department (Sabah and Sarawak Affairs) Datuk Mustapha Sakmud said this development reflects the ongoing efforts of the federal government, under the leadership of Prime Minister Datuk Seri Anwar Ibrahim, to showcase the potential of both states on the international stage.

“We highly welcome Sarawak’s involvement in the field of AI, as it will not only boost the state’s economy and create career opportunities for locals, but the spillover benefits will also be enjoyed by Sabah.

“Wherever the Prime Minister goes on the international stage, he consistently highlights the potential of both these states,” he said when met after appearing as a guest on the programme *The Nation*, produced by Bernama TV, at Wisma Bernama here today.

Last Sunday, while speaking at the *Sentuhan Kasih MADANI* programme and the launch of the National Cost of Living Action Plan 2030 (NCLAP30) in Melaka, Anwar said a global investor intends to invest US$50 billion in AI, new technologies, and data centres across Sarawak and the Peninsula.

He noted that investments in these technology sectors have the potential to create new, better job opportunities for the people particularly the younger generation, including students in schools and higher education institutions.

In a related development, Sarawak Premier Tan Sri Abang Johari Abang Openg said yesterday that the state government is prepared to welcome the investment, while ensuring that all plans are executed in line Sarawak’s development priorities.

Meanwhile, commenting on the government’s measures to prevent the recurrence of "stalled" (or "sick") projects and delays in the implementation of development projects in Sabah, Mustapha said the government would strengthen project management to ensure that the RM18.7 billion allocation truly benefits the people.

According to him, the government must learn from the observations raised in the Auditor-General’s Report, particularly concerning site preparation, utility management, and project execution.

“We must learn from the audit observations that have been made recently and reported,” he said.

He added that weaknesses in project management are often among the factors that contribute to implementation delays and cost increases.

In this regard, he emphasised that the improvement of project management must consistently remain a priority for all parties involved.

--BERNAMA