Sarawak’s free tertiary education initiative, set to begin in 2026, is expected to cost the state government more than RM1 billion by its third year, Premier Abang Johari Openg announced.
Speaking at the Dayak Bidayuh National Association’s 70th anniversary celebration, Abang Johari said the programme’s first-year cost is projected at over RM400 million, doubling in the second year. The final budget allocation will be revealed when he tables the state’s 2026 Budget in the Sarawak Legislative Assembly this November.
Despite the high cost, the state government will press ahead with the initiative, which will cover tuition fees for Sarawakian students studying at the five state-owned higher education institutions.
Abang Johari also outlined the state’s economic future, stressing that hydrogen and semiconductor chips—not oil and gas—will become Sarawak’s primary revenue sources. He said hydrogen revenues would be “huge” in comparison to oil and gas.
He revealed that state-owned SMD Semiconductor Sdn Bhd is partnering with two foreign tech firms to develop compound semiconductor chips based on Gallium Nitride (GaN), paving the way for Sarawak to design and produce its own chips.
Citing Nvidia Corporation as an example, he said chip design can generate massive income. He also disclosed that Prime Minister Anwar Ibrahim has invited him to present Sarawak’s vision as a semiconductor hub at the ASEAN Summit in Kuala Lumpur next month.
Abang Johari added that Sarawak must diversify beyond oil and gas, using oil revenues as seed capital while positioning hydrogen and semiconductors as the state’s future economic pillars.
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