Two thirds of this huge state is covered in forest and sarawak's population is dependent mainly on agriculture and natural resources. There is extensive palm oil, cocoa and rubber cultivation. Sarawak has a long coastline and fishing and tourism related activities are prominent. There are some small-scale manufacturing and cottage industries which are important.

The oil-rich coastline of Sarawak plays a major role in the economy of the state and Sarawak's economy is largely dependent on its rich natural resources like oil and liquefied natural gas (LNG) Natural gas is mostly exported to Japan.

Other sources of revenue come from the famous Sarawak black and white pepper, rubber, sago, copra, bird's nests and Timber. Malaysia produces around 27.550 U.S. tons of pepper. Ninety percent of which comes from Sarawak.