Broadband Subscriptions Surge As Sarawak Transforms Into A Digital Growth Frontier

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THE Sarawak telecommunications sector is undergoing a structural transformation, driven by the state’s ambition to develop a robust digital infrastructure that expands coverage and improves connectivity across the region. 
In recent years, Sarawak has progressed from being one of Malaysia’s least connected states to an emerging growth frontier for digital infrastructure investment.
According to an independent market research report by Providence Strategic Partners, total broadband subscriptions in Sarawak increased from 3.3mn in 2020 to 3.7mn in 2024, representing a compounded annual growth rate (CAGR) of 2.9%.

By segment, mobile broadband subscriptions rose from 3.1mn to 3.4mn at a CAGR of 2.3%, while fixed broadband subscriptions expanded from 0.2mn to 0.3mn at a CAGR of 10.7%. 
Meanwhile, in 2024, the mobile and fixed broadband penetration rates stood at 133.5% and 39.6%, respectively. In terms of coverage, the 4G mobile coverage by settlement for 2Q2025 was estimated at around 85.3%.
Meanwhile, 5G coverage in populated areas in Sarawak currently stands at approximately 66%. According to the state agency, an estimated 7,000 towers are required to provide coverage to all populated areas in Sarawak.
The existing 4,349 towers currently serve as the foundation for the state’s mobile network.  As of 2Q2025, 328 new towers have been completed. Moving forward, the SMA and relevant parties will continue working to complete the remaining estimated 2,323 towers to achieve full coverage across all populated areas in Sarawak by 2030.

Overall, we are positive on the outlook for the telecommunication sector in Sarawak. This is supported by:
i) healthy economic growth.
ii) strong domestic and foreign investment.
iii) supportive government policies and initiatives.
Economic growth remains a major driver for the telecommunications industry, as rising economic activity increases the demand for connectivity. As businesses, households, and government agencies grow and digitalise, their utilisation of communication services and investment in telecommunication infrastructure also rise.
In addition, stronger economic performance typically accelerates digital adoption across the state, further stimulating investment in digital infrastructure.
Generally, TA Securities believe that Sarawak’s economy will be able to sustain its growth trajectory, driven by favourable domestic economic conditions. — focus Malaysia

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