A smart city is a city that uses digital technology, sensors, and data to improve the quality of life for its residents, the efficiency of public services, and economic and environmental sustainability.
In the context of the state of Sarawak, which is moving towards developed state status by 2030, the smart city concept is highly significant as it supports the aspirations of the Sarawak Digital Economy Blueprint 2030.
Through the implementation of smart cities, the management of resources such as water, energy, and solid waste can be carried out more systematically.
It also strengthens public safety and opens new opportunities in the digital economy, tourism, modern agriculture, and logistics sectors.
However, beyond these foundational benefits, Sarawak is strategically positioning itself as a premier investment destination by leveraging its smart city infrastructure to meet global standards in Sustainability Development Goals (SDG), Environmental, Social, and Governance (ESG) criteria, and the state’s own Post-COVID Development Strategy (PCDS) 2030.
The Technological Backbone
Among the key pillars enabling the implementation of smart cities are mobile communication technologies, particularly fourth-generation (4G) and fifth-generation (5G) networks.
Both technologies serve as the foundational infrastructure connecting every digital component, from smart homes to intelligent transportation systems and real-time data-based city monitoring.
4G is the fourth generation of mobile networks that introduced high-speed data connections compared to previous technologies.
It enables HD video streaming, video calls, mobile gaming, and cloud applications more stably.
4G networks come in two main forms: WiMAX (Worldwide Interoperability for Microwave Access) and LTE (Long Term Evolution).
In Malaysia, 4G LTE technology is widely used and serves as the main foundation for digital connectivity in Sarawak.
The average actual speed in Malaysia is around 20 to 50 Mbps download and 10 to 20 Mbps upload, which is sufficient for daily digital applications and support for online government services.
4G networks were introduced in Malaysia around 2013, just one year after South Korea launched 4G comprehensively.
In Sarawak, 4G coverage continues to be expanded as a preparatory step towards 5G.
As of the second quarter of 2023, 4G coverage in populated areas of Sarawak reached 87.54 percent, compared to the national average of 96.96 percent.
The state government, through the Sarawak Multimedia Authority (SMA), has allocated funds for the development of 864 new towers, 3,725 upgraded transmitters, and 207,135 premises with gigabit fibre-optic connections, which play a crucial role in strengthening rural communication infrastructure.
5G, on the other hand, is the fifth generation of mobile communication technology offering speeds, capacity, and reliability far exceeding 4G.
It uses higher frequency bands, including millimetre waves (mmWave), supported by technologies such as Massive MIMO (Multiple Input Multiple Output) and network slicing.
The average 5G download speed is between 150 Mbps and 1 Gbps, while upload speeds can reach 50 to 500 Mbps.
Theoretically, 5G can achieve 10 to 20 Gbps under optimal conditions, 100 times faster than 4G.
Besides speed, 5G’s main advantage is its very low latency of only 1 millisecond (ms) compared to 30 to 50 ms on 4G.
This means real-time communication can occur with almost no delay, making it suitable for critical operations such as remote surgery, driverless vehicles, and smart traffic management.
An example of its application can be seen in China, where a remote respiratory endoscopy robotic surgery using a 5G connection was successfully performed between Shanghai and Kashgar.
In Malaysia, the government is testing driverless electric buses in Putrajaya, integrating 5G for real-time monitoring, public WiFi connectivity, and journey data collection.
This initiative demonstrates Malaysia’s commitment to keeping pace with neighbouring countries like Thailand in implementing smart mobility.
By the fourth quarter of 2025, 5G coverage in Sarawak’s populated areas had reached 63.8 percent, while 4G coverage remained at 84.8 percent.
Overall, the state’s internet coverage has reached 90.2 percent, resulting from continuous state government investments through the RM2.3 billion Saluran programme to develop rural telecommunications infrastructure.
As of September 2025, 618 telecommunication towers have been completed or are under construction across the state.
SMA is also implementing the High-Speed Broadband Rural Networks (HSBRN) project in 11 rural areas, involving the installation of approximately 1,000 kilometres of fibre optics.
These efforts are crucial to ensure all citizens, including those in the interior, can enjoy the benefits of the digital economy.
With close cooperation between the state government, industry, and local communities, the target of building 7,000 communication towers by 2030 is expected to be achieved, making Sarawak a truly fully digitally connected state.
Sarawak’s Strategic Advantages for Investment and Business
Sarawak offers a unique value proposition for investors, moving beyond traditional resource extraction to high-value digital and green industries.
The state’s political stability, clear regulatory frameworks under the Sarawak Multimedia Authority (SMA), and proactive government spending create a conducive environment for business.
The Kenyalang Smart City project in Miri represents a monumental leap in smart city development.
This high-profile project, sealed through an investment agreement between Imasa Dinasti Sdn Bhd, China Energy Engineering Group Guangxi Electric Power Design Institute Co.
Ltd.
(CEEC-GXED), and several major companies from Shandong, China, is a testament to Sarawak’s appeal to foreign direct investment (FDI).
The KSC project is designed to bring a new approach to urban development based on smart technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), and 5G connectivity, aligning with sustainability and low-carbon goals.
According to a project organiser, “This project will not only drive the growth of the digital economy and green technology in Sarawak, but will also open thousands of high-value job opportunities for local workers.” The development includes international-class facilities such as a convention centre, a performing arts centre, and a cultural heritage museum, positioning Miri as a new hub for business tourism and cultural investment.
Bridging the Digital Divide for Market Expansion
For businesses, a connected customer base is essential.
The Sarawak government is aggressively closing the digital divide.
In November 2025, the Premier announced an allocation of RM450 million for 2026 as Alternative Funding to accelerate the SMART tower projects and the Sarawak Rural Broadband Network (MySRBN) initiative.
The SMART600 project targets improved connectivity at more than 1,000 rural locations.
“The initiative involves constructing 600 new communication towers, expected to benefit approximately 180,000 residents in areas such as Marudi in Miri and Belaga, as well as Sungai Belawai and Sungai Encheremin in Kapit,” the Premier stated.
As of July 2025, 587 towers have been completed, with 431 already activated.
Furthermore, RM20 million has been allocated to the Sarawak Digital Economy Corporation (SDEC) to subsidise broadband charges for rural households, making digital services affordable and expanding the potential market for e-commerce, fintech, and digital education providers.
Strategic International Partnerships
Global technology leaders recognise Sarawak’s potential.
ZTE Corporation has entered a strategic Memorandum of Understanding (MOU) with SACOFA Sdn Bhd to advance Sarawak’s digital infrastructure.
This collaboration focuses on providing innovative and sustainable telecommunications solutions, with a specific emphasis on expanding reliable connectivity to rural and remote areas using hybrid microwave, satellite backhaul, and solar-powered green energy systems.
Steven Ge, Managing Director of ZTE Malaysia, stated, “By combining advanced fibre access, high-performance FWA, trusted public Wi-Fi platforms, integrated rural base stations, and smart green energy systems, we aim to deliver scalable, secure connectivity solutions tailored to Sarawak’s diverse landscape.” Jafer Sadig Abdul Lathiff, CEO of SACOFA, added that this partnership ensures “inclusive access to digital services for all Sarawakians,” reinforcing the state’s role as a connectivity hub.
These partnerships signal to investors that Sarawak is equipped with world-class, reliable technology partners.
Economic Targets and Private Sector Empowerment
Under the 13th Malaysia Plan (2026–2030), Sarawak aims to double the size of its economy from RM148.2 billion in 2024 to RM282 billion by 2030, with a median monthly household income target of RM15,000.
Premier Abang Johari has emphasised that “a stronger and more dynamic private sector will be central to this growth — expanding capacity, boosting productivity, creating jobs, enhancing competitiveness, and attracting both domestic and foreign investments.”
The state is structured around 15 Key Socioeconomic Sectors and Enablers, including Energy Transition, Digital Transformation, and Waste and Circularity, providing a clear roadmap for investors to align with state priorities.
Alignment with Global and Local Frameworks
Sarawak is not just building smart infrastructure; it is embedding its development within internationally recognised sustainability frameworks to ensure long-term viability and investor confidence.
PCDS 2030 (Post-COVID Development Strategy)
The PCDS 2030 is Sarawak’s homegrown roadmap to achieve developed status by 2030.
The Digital Economy Blueprint serves as the foundation for this strategy.
In launching the Sarawak 13th Malaysia Plan (2026–2030), the Premier underscored the state’s commitment to inclusive and sustainable growth.
Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg stated:
“Our goal is clear: to ensure every initiative under the Post-COVID Development Strategy (PCDS) 2030 delivers tangible outcomes, improving lives, creating quality jobs, and expanding opportunities for all Sarawakians. Through these strategic efforts, we aim to double the size of our economy from RM148.2 billion in 2024 to RM282 billion by 2030…We remain fully committed to embedding environmental sustainability across all initiatives, with the long-term goal of achieving net zero emissions by 2050.”
The Premier has explicitly stated that the Digital Economy Blueprint “will be underpinned by the United Nations Sustainable Development Goals.” The KSC project and 5G rollouts are explicitly cited as part of the PCDS 2030, aiming to strengthen Sarawak’s position as a leader in smart city development and the digital economy in the region.
Environmental, Social, and Governance (ESG)
Sarawak is proactively integrating ESG principles into its digital transformation.
For example, in the agricultural sector, Sarawak is utilising IoT, AI, and drones to enhance productivity while reducing the reliance on food imports.
Furthermore, the state is integrating blockchain technology into its halal supply chain.
This provides verifiable, “farm-to-fork” digital traceability, allowing Sarawak to capture a share of the $2.0 trillion global Islamic market by ensuring transparency and ethical sourcing.
The focus on green data centres and solar-powered telecommunication towers (as seen in the ZTE-SACOFA partnership) directly addresses the “Environmental” criteria of ESG by reducing the carbon footprint of digital infrastructure.
The focus on connecting rural and remote communities directly fulfills the “Social” aspect of ESG, ensuring no Sarawakian is left behind.
Sustainable Development Goals (SDG)
The Sarawak Digital Economy Blueprint aligns with several SDGs:
– SDG 9 (Industry, Innovation and Infrastructure): Through the construction of 4G/5G towers and fibre optics.
– SDG 11 (Sustainable Cities and Communities): Through the Kenyalang Smart City project.
– SDG 8 (Decent Work and Economic Growth): By creating high-value jobs in the digital economy.
– SDG 17 (Partnerships for the Goals): Through collaborations with ZTE, Chinese investment groups, and federal agencies.
Advanced 5G Applications Driving Business Value
Beyond connectivity, 5G enables specific high-value applications that are attracting investment to Sarawak.
Smart Agriculture: Sarawak aims to reduce its RM8.2 billion food import bill by using 5G-enabled IoT sensors and drones for precision farming.
This allows for real-time monitoring of soil moisture and crop health, optimising yields for export commodities like black pepper and Sarawak pineapple.
Healthcare Tourism and Services: With 5G’s low latency (1ms), Sarawak can become a hub for telesurgery and remote diagnostics.
A hospital in Kuching could potentially consult with or direct surgery in Miri or a remote clinic, positioning the state as a regional medical centre.
Logistics and Autonomous Vehicles: The integration of 5G with smart traffic management systems reduces congestion and improves supply chain efficiency.
The testing of autonomous buses (as seen in Putrajaya) could be replicated in Kuching or Miri under Sarawak’s smart city plans.
Turning Hurdles into Opportunities
While significant progress has been made, challenges remain to fully unlock this potential.
These include the high cost of infrastructure development in Sarawak’s vast and challenging topography and the need for a larger pool of local skilled talent in telecommunications and cybersecurity.
The state government is addressing these by strengthening digital training programmes and encouraging private investment.
As of late 2025, while Sarawak’s 4G coverage in populated areas remains high, the national average for 4G is slightly higher, indicating room for improvement.
However, with the RM450 million injection for 2026 and the strategic partnership with ZTE, Sarawak is on track to overcome these hurdles.
A Prime Investment Destination
The integration of 5G will strengthen the smart city ecosystem, making Sarawak a competitive, connected, and resilient state by 2030.
4G and 5G technologies are not merely internet speed upgrades but key catalysts in the development of Sarawak’s smart cities.
For investors and businesses, Sarawak offers a rare combination of government-backed mega-projects (KSC), strategic infrastructure investment (RM450 million for SMART towers), international tech partnerships (ZTE-SACOFA), and a clear regulatory framework tied to SDG and ESG principles.
With extensive coverage, strategic investment, and government policy support, Sarawak is rapidly becoming the first state in Malaysia to truly operate within an inclusive, efficient, and sustainable smart digital ecosystem.
References
Jabatan Premier Sarawak. (2025, April 16). Projek Kenyalang Smart City dijangka pacu ekonomi digital dan bandar pintar di Sarawak [Press release]. UKAS.
Jabatan Premier Sarawak. (2025, October 20). Sarawak’s 13MP to deepen transformation, empower greater private sector participation [Press release]. UKAS.
Sarawak Tribune. (2025, November 24). RM450 million to step up efforts to close digital divide.
The Edge Malaysia. (2022, June 21). Sarawak to launch blueprint to becoming leading digital economy by 2030.
The Register. (2026, March 5). ZTE, SACOFA boost partnership for Sarawak’s digital vision.
The Star. (2026, March 4). ZTE, SACOFA ink MoU to boost Sarawak’s digital infrastructure.
The Vibes. (2025, November 16). Anwar announces RM2 billion connectivity boost for Sabah.
e南洋. (2025, November 16). 安华:优先大学与政府大楼 拨20亿提升沙巴网络.
Sarawak Smart. (n.d.). Smart Agriculture and Digital Inclusion. Retrieved April 7, 2026, from https://sarawaksmart.my
