Sabah's unemployment remains high as economic recovery lags

The Star

08-05-2025

Warisan president Datuk Seri Shafie Apdal holds up charts comparing Sabah's economic performance under Warisan and GRS during a press conference in Kolombong.
KOTA KINABALU: Sabah's unemployment figures remain worryingly high, with 165,600 people still out of work in 2023, according to data from Warisan — a staggering increase from 114,300 in 2019.
Warisan president Datuk Seri Shafie Apdal said this sharp rise in joblessness reflects a troubling reality for many young Sabahans, who continue to leave the state for better opportunities in places like Kuala Lumpur, Singapore, and Hong Kong.
'This is a serious issue. We need to create jobs within Sabah so our people do not have to migrate for work. If we do not address this, we risk losing our talent,' he said at a press conference in Kolombong, here, Wednesday (May 7).
Shafie also pointed to the need for more investment in downstream industries to drive economic growth and create sustainable jobs, noting that Sabah's Gross Domestic Product (GDP) has struggled to recover. The state's GDP stood at RM83.2bil in 2023, still below its 2019 peak of RM85.6bil, marking a decline of RM2.4bil or 3% over four years.
He cited the missed opportunity involving IKEA as a prime example of Sabah's struggle to attract major investments. Despite Sabah's rich timber resources, IKEA ultimately chose Sarawak over Sabah for its investment, raising concerns about the state's ability to support value-added industries.
'For instance, we produce cocoa, but where are the chocolate factories? Why are we just exporting raw materials? We need to add value locally to create jobs and strengthen our economy,' Shafie said.
Shafie also took the opportunity to introduce Warisan's new slogan, 'Save Sabah' (Selamatkan Sabah), which he said captures the party's mission to address the state's critical issues, including unemployment, economic decline, and infrastructure gaps.
'Save Sabah from no basic infrastructure. Save Sabah from rising unemployment. Save Sabah from being left behind in terms of economic growth and development,' he said.
He urged the people of Sabah to give Warisan a chance in the upcoming election, assuring them that the party can resolve the state's basic necessities challenges and build a stronger, more resilient Sabah.
'We are capable of solving our problems. We do not need to keep relying on others. We can manage our resources and address our challenges if given the chance,' Shafie said.
The persistently high unemployment and sluggish GDP recovery also reflect broader challenges, including gaps in infrastructure, high logistics costs, and a lack of skilled labour, which must be addressed for sustainable growth.