Laying the Foundation for Legacy: The Establishment of the Development Bank of Sarawak

"Although the Development Bank of Sarawak (DBOS) is a wholly-owned subsidiary of the Sarawak government, we will not intervene. Let the professionals do their job and advance other strategic and development initiatives." ——Sarawak Premier Datuk Patinggi Tan Sri Abang Johari (January 15, 2018)

(Kuching, 22nd) Under the leadership of Sarawak Premier Datuk Patinggi Tan Sri Abang Johari, Sarawak has embarked on a new chapter of economic transformation. With remarkable foresight, Abang Johari has mapped out the blueprint for the state's economic future, among which one of the most iconic and transformative initiatives is the establishment of the Development Bank of Sarawak (DBOS).
DBOS was officially launched in November 2017, incorporated under the Companies Act 2016 as a non-designated development financial institution. The bank is wholly owned by Capital Development Resource (Sarawak) Sdn Bhd, which in turn is 100% owned by the Sarawak State Financial Secretary. DBOS was modeled after institutions like the Asian Development Bank (ADB) in the Philippines and the Development Bank of Singapore (DBS), officially starting operations in January 2018 with a paid-up capital of RM500 million.

This forward-looking initiative is part of Abang Johari's overall strategy to enhance Sarawak's economic autonomy, reduce dependence on federal agencies, and accelerate state development through the establishment of a homegrown financial institution. Abang Johari is deeply aware that only by better controlling its own economic fate can Sarawak truly accelerate its development.
As a development financial institution, DBOS’s loan funding mainly comes from capital injections by the holding company, deposits from the Sarawak government, and input from statutory bodies and government-linked companies. Its core role is to assist the Sarawak government in advancing various strategic infrastructure projects.
The idea behind DBOS is to build a state-owned bank tailored to Sarawak’s unique needs, offering customized financial products and services to promote economic growth. The bank complements traditional commercial banks, focusing on the state’s long-term development objectives. By providing a range of financial solutions, DBOS propels Sarawak's growth, reduces reliance on federal allocations, and cultivates a more self-sufficient economy. With a priority on long-term development, DBOS provides products such as term loans, revolving credit, project financing, bridging loans, syndicated loans, and green financing, driving growth in key sectors.

In terms of fund allocation, DBOS mainly supports six major sectors: public infrastructure (such as water supply, roads, bridges, educational and medical facilities), energy (oil and gas, and renewable energy), agriculture, tourism, the digital economy, and real estate, with special focus on strategic projects like the Autonomous Rapid Transit (ART), ensuring timely funding to these sectors to drive economic growth.
Aligning with Sarawak’s vision of sustainable economic transformation, DBOS prioritizes projects that fit the state government's strategic goals, especially those that contribute to green development and long-term sustainability. The bank serves not only government departments, but also includes local governments, statutory bodies, GLCs, and other entities within the state government system. The overall aim of DBOS is to ensure Sarawak has sufficient financial capability to finance and manage its own growth according to the long-term economic blueprint, creating a self-sufficient and resilient economy.

Financing Infrastructure Development

Sarawak is vast and has many rural areas, requiring massive infrastructure construction to connect remote regions, improve public services, and drive economic activities. DBOS provides financing for large-scale infrastructure projects such as roads, bridges, public transport systems, and energy projects, all crucial for long-term economic growth and regional development. Besides major projects, DBOS also funds smaller-scale infrastructure developments. The bank emphasizes the spillover effect of infrastructure—improvements in water supply, roads, and rural electrification are expected to significantly uplift the economic conditions of Sarawakians, especially those in rural districts.
One of DBOS’s core objectives is to ensure more equitable distribution of development outcomes across the state. The bank pays particular attention to projects aimed at improving the economic prospects of rural and disadvantaged communities. By financing rural development programs, DBOS helps narrow the urban-rural gap and promotes more inclusive social development.
On May 26, 2022, Deputy Premier Datuk Douglas revealed that as of March 31, 2022, DBOS’s total deposits had reached RM7.16 billion, with approved financing of RM9.7 billion. He stated that the loans disbursed primarily served public infrastructure projects in Sarawak, including water supply, rural electrification programs, roads, and bridges.
On May 23, 2023, Abang Johari announced that as of October 2022, DBOS’s total assets had increased to RM9.47 billion, with retained earnings of about RM131.48 million. The bank also received tax exemption from the federal Ministry of Finance, on the condition that all profits be reinvested into further infrastructure project financing.

Towards Economic Self-Reliance

As Sarawak continues to develop and moves towards a higher level of economic self-reliance, DBOS will remain a key player in the state’s future development. The bank is a driving force in promoting economic diversification, harnessing technological advancements, and addressing challenges in climate change and sustainable development. Through DBOS, Sarawak is able to fund the projects and programs necessary to build a stronger, more resilient, and inclusive economy for all.

Abang Johari’s leadership is instrumental in realizing this vision, and DBOS stands as the best testament to his dedication to empowering Sarawakians, supporting local businesses, and creating a brighter future for the state. The establishment of DBOS has not only significantly enhanced Sarawak’s economic autonomy, but has also paved the way for a more prosperous and sustainable future.

Photo Captions:
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— On November 17, 2025, Abang Johari (center), Deputy Premier Datuk Douglas (left), Sarawak State Assembly Speaker Tan Sri Datuk Amar Mohamad Asfia (right), and several other distinguished guests attend DBOS Anti-Corruption Day.
— Abang Johari giving a speech at the DBOS 5th Anniversary Gala Dinner.