Billion-ringgit projects must consider technical advice
Published on: Sun, Jul 27, 2025 Text Size: Recent announcements by the Sabah Government highlighted billions in potential investments, primarily structured as joint ventures with overseas companies, notably from China. These include the RM6 billion shipyard in Sipitang, a vehicle assembly plant for Sandakan, and an Industrial park in Kota Belud. However, questions regarding the feasibility and viability of these specific projects should be addressed. 1. RM6 Billion Shipyard at Sipitang The designated Brunei Bay area at Sipitang is relatively small and characterised by shallow waters.
Modern cargo vessels frequently exceed 500,000 tons. Accommodating just two such ships would fill the available space.
The region faces many well established, world-class shipyards in Singapore, Hong Kong and South Korea. Major shipping hubs offer extensive services, crew facilities and logistical networks. Sipitang is just a fishing village that lacks the necessary ancillary infrastructure and amenities to attract major shipping lines away from established centres. 2. Car Vehicle Assembly at Sandakan Sandakan lacks a deep water port, making the cost-effective import of bulk components (CKD kits) and export of finished vehicles highly challenging.
Beyond logistical issues, there are concerns whether the local market's scale and composition is sufficient to support a large-scale assembly operation. The specific demographic profile of the area of mostly Suluk descendants does not align with such an industry. 3. Industrial Park at Kota Belud Kota Belud currently lacks the fundamental industrial infrastructure (reliable high-capacity power, advanced water supply and treatment, high speed data connectivity and a skilled workforce pipeline) required to attract data centres or high-tech manufacturing, such as semi-conductor fabrication as proposed by Taiwanese companies.
Establishing a major industrial park requires an existing eco-system of suppliers and services, which is absent in Kota Belud. The pattern of announcing such large-scale projects raises concerns that political mileage may be overshadowing rigorous feasibility analysis and technical advice. It appears that civil servants, possessing the requisite technical knowledge, may have initially advised against these specific locations or projects, but were not heeded. Based on the substantial geographical, logistical, infrastructural, and market challenges outlined above, there is a significant risk that none of these specific projects, may ever progress beyond the conceptual stage ('changkuling'). In order to protect whatever credibility remains of the Sabah leadership and ensure sound economic development, it is imperative to: Subject these proposals to immediate, independent and transparent feasibility studies. Prioritise projects aligned with Sabah's existing infrastructure, resources and market realities, and Ensure that technical advice from civil servants are integrated into decision making before making public announcements. Dayang Jambul The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express. If you have something to share, write to us at: [email protected]
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