4 days ago
Sabah's economic development now on solid foundations
Sabah was named the Most Outstanding State in Malaysia for the Year 2024 in conjunction with the ASEAN International Business Review (IBR) Awards Ceremony organised by IBR at the Sabah International Convention Centre (SICC) here on Saturday Finance Minister Datuk Seri Panglima Masidi Manjun, representing the Chief Minister, Datuk Seri Panglima Haji Hajiji Haji Noor, received the award, which was presented by the Chief Judge of the awards, Datuk Seri Azman Ujang.
This recognition was based on an evaluation by a panel of professional judges comprising prominent figures from various fields, supported by data from a comprehensive assessment carried out by expert advisors.
KOTA KINABALU (July 20): The present State Government has firmly anchored Sabah's vision and roadmaps for a robust economic development on solid foundations, said Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor.
He said that for the last five years, the State Government has been creating a new Sabah, strong and united, and inviting the world to leverage the state's natural wealth and treasures to build better lives for its people.
'Our riches are manifold – from minerals such as gold, copper, silica, palm oil, cocoa and multiple energy resources such as crude petroleum, gas, hydroelectricity, coal and more.
'Our oceans benevolently give us the abundance of some of the most sought-after seafood delicacies and thermal energy while maintaining pristine and untouched coral reefs,' he said at the International Business Review (IBR) ASEAN Awards at the Sabah International Convention Centre (SICC) here on Saturday night.
State Finance Minister Datuk Seri Panglima Masidi Manjun delivered his speech.
Hajiji said Sabah had sealed the Commercial Collaborative Agreement with Petronas, allowing the state to have more participation and more say in the oil and gas industry in Sabah itself.
'We now have 50 per cent equity from the Samarang oil and gas field, 25 per cent equity from Samur, and on 17 July 2025, we signed an agreement with Petronas to acquire a 25 per cent equity in the USD3.1 billion floating liquefied natural gas (ZLNG), also known as PFLNG 3, a shore based US$3.1 billion LNG investment in Sipitang,' he said.
'On the investment front, our hard work paid off when Sabah recorded RM17.41 billion from 73 companies in overall approved foreign and domestic investments in the manufacturing sector since September 2020.
'Of these 73 companies, 52 have already set up businesses in the state with a total investment of RM7.8 billion, creating 3,636 jobs,' he said.
Between 2022 and 2024, the Chief Minister stated that Sabah has received new investment proposals worth an additional RM42.3 billion, which will create 32,996 jobs.
He said the three-phase RM31 billion Esteel Enterprise Sabah Sdn Bhd launched at the end of June this year is set to create a ripple effect extending beyond green technology to spur innovation, drive benefits for businesses and communities in Sabah.
Hajiji said that due to high demand from investors, the State Government has approved three new industrial parks in Kota Belud, Beaufort and in the north, Kudat for the Blue Economy Industrial Park – all strategically located to grow investment opportunities.
'We are confident this development bodes well for Sabah as the state progresses in its journey to explore new horizons to realise the state's full potential.
'Sabah will always remain investor-friendly, and we have implemented policies to attract more investors here. We are committed to creating a conducive space that nurtures investments and fosters collaboration.
'We understand the importance of creating a stable, transparent, and supportive environment for investments to flourish,' he said.
'We welcome more direct connectivity so that investors, tourists and business travellers have easy access to Sabah. AirAsia's new Kota Kinabalu-Taipei-Fukuoka route is one example that would benefit both the tourism and investment sectors, and we look forward to many more opening up in the near future,' he said.
Hajiji said that one industry that will be a game changer and offer immense investment opportunities for Sabah is the Blue Economy, which has been established in Kudat.
'This sector is estimated to yield 491,000 metric tons of marine harvests such as fish and prawns annually, with a value of RM3.25 billion. But, there is more to Blue Economy than just deep-sea harvesting,' he said.
In fact, 14 components of the Blue Economy can be explored, such as renewable ocean energy, blue carbon, tourism, maritime transport, and marine biotechnology, among others, he said.
On ocean energy, the Chief Minister said one of the most exciting is the Ocean Thermal Energy Conversion (OTEC), which harnesses energy from our oceans.
'OTEC power plants are currently being planned to span 500km of coastline and, in time, to be able to generate 20,000MW of green energy, an unprecedented scale globally.
This is not only a gamechanger for the country, it's a gamechanger for the region,' he said.
Hajiji said that as far as power supply is concerned, the State Government has launched the Sabah Energy Roadmap and Master Plan 2040, which is expected to generate 700MW in the next 1-2 years to meet the needs of investors and citizens.
Likewise, he said RM679.85 million has been allocated in 2024 to address immediate water shortages, and long-term plans include the completion of the Ulu Padas hydropower project, which has a daily release capacity of 6,000 million litres of water.
Hajiji said Sabah has also invested substantially in human capital development, with close to RM1 billion spent on education as well as on various youth development programmes from 2021 to 2024.
