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Daily Express
28-04-2025
- Business
- Daily Express
Can't bet only on agriculture, tourism
Published on: Monday, April 28, 2025 Published on: Mon, Apr 28, 2025 By: Crystal E Hermenegildus Text Size: Phoong visits one of the booths and receives a souvenir from the owner at SIFEX 2025. Kota Kinabalu: Sabah must urgently transition from a consumption-driven economy to a producing and manufacturing powerhouse, said State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe. He said Sabah can no longer rely heavily on agriculture and tourism alone to grow and secure its future in an increasingly uncertain global landscape. 'We must produce what we consume and export what we produce. We can no longer depend entirely on importing raw materials or finished products. Sabah must urgently become a manufacturing and producing state,' Phoong said. He told reporters during the Sabah International Food Expo 2025 at the Sabah International Convention Centre (SICC), Saturday. The call comes amid rising global uncertainties, including tariff wars, export controls, and supply chain disruptions, which Phoong warned could threaten Sabah's economic stability if not addressed. Despite the challenges, Sabah's manufacturing sector has already shown positive signs. Phoong said Sabah recorded the highest manufacturing GDP growth in Malaysia in 2023 at 4.4 per cent, driven by major investments such as Kibing's RM3 billion solar glass manufacturing plant and SK Nexilis's RM5 billion copper foil project. However, Phoong said this success must not breed complacency. He outlined the state's strategic push to upscale Small and Medium Enterprises (SMEs), encourage exports, and improve food security through new initiatives. 'We are not just giving machinery grants anymore. We are tying assistance to performance and outcomes. Recipients must show they can scale their businesses and reach international markets,' he said, citing the SME Up programme, which provides branding support, packaging improvement, and capacity-building training. Phoong also said Sabah's efforts to strengthen its food industry as an export sector, noting that food products, beyond traditional commodities like palm oil, are beginning to play a bigger role in Sabah's export portfolio. 'Trade wars teach us that food security is national security. Sabah has the natural resources to feed not just itself but the region – but only if we industrialise and build a full value chain,' he said. Phoong said the ministry is working closely with agencies like the Malaysia External Trade Development Corporation (Matrade), Exim Bank, and private associations such as the SME Association to prepare local entrepreneurs for regional and global markets. He said future-proofing industries would also involve equipping businesses with AI tools and digital marketing capabilities. 'It is no longer about competing locally. Sabah's entrepreneurs must be digital, must export, and must be able to brand and market themselves internationally,' he said. Phoong acknowledged that global competition and supply chain volatility are here to stay, particularly with developments like U.S. tariffs on Chinese goods, which indirectly impact Southeast Asian markets. 'We have no choice but to be proactive. We must build our industries to withstand these shocks. Sabah cannot afford to wait anymore,' he said. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Borneo Post
26-04-2025
- Business
- Borneo Post
Phoong: Sabah must strengthen food security, push for manufacturing growth
Phoong (third from left) during the official opening ceremony of SIFEX. KOTA KINABALU (April 26): Sabah must act swiftly to strengthen its food security and transform itself into a producing and manufacturing state amid rising global uncertainties, said Minister of Industrial Development and Entrepreneurship, Datuk Phoong Jin Zhe. He warned that ongoing global trade wars and tariff disputes are likely to disrupt supply chains and drive up prices, putting import-reliant states like Sabah at significant risk. 'We are living in an uncertain world. If the tariff wars continue, we will face lower global demand and unavoidable price inflation,' Phoong said, noting that Sabah imports almost everything, making it highly vulnerable. He stressed the need for local entrepreneurs to seize new opportunities by moving beyond reliance on raw materials and tourism. 'Agriculture and tourism will remain important, but we must go further. We must produce something. We must move downstream and make Sabah a producing and manufacturing state,' he said after officiating the Sabah International Food Expo 2025 (SIFEX) on Saturday. Phoong said his ministry is prioritising the manufacturing sector, aggressively attracting global investments while upskilling local industries. He cited successful investments by Kibing, SK Nexilis, and the upcoming Esteel project as signs of Sabah's growing industrial potential. At the same time, support for local entrepreneurs is being strengthened to help modernise businesses and expand market reach. 'Even if you are selling ikan bilis at the tamu, it's no longer enough to sell it the traditional way. We must improve packaging, branding, and production to access not just the local market, but the wider Borneo region and beyond,' he said. Phoong highlighted that Sabah recorded the highest manufacturing sector growth among Malaysian states in 2023 at 4.4 per cent and expressed confidence that the positive momentum would continue. However, he pointed out that Sabah's small domestic market of 3.7 million people cannot sustain major industries, making export development crucial. To support this, the ministry has strengthened its Small and Medium Enterprise Readiness (SMER) programme, assisting local industries with modern machinery, packaging, branding, and access to export markets. 'Now, when we give machines, it's not just a giveaway. We monitor closely, set KPIs, and support businesses with strong marketing plans committed to growth,' Phoong said. He added that the previous policy of allowing entrepreneurs to apply for only one machine in their lifetime has been abolished. 'If your business grows, you can apply every year for different equipment because scaling up must be continuous,' he said. The ministry is also collaborating with private sector organisations and NGOs to offer training in areas such as branding, AI applications, and digital marketing. 'In today's fast-changing world, skills must evolve. We are working with partners like MITI to ensure our entrepreneurs are prepared,' Phoong said. While Sabah's direct exports to the United States account for just 0.6 per cent of total exports, he warned that ripple effects from global trade disruptions could still impact the state. 'Sabah must be ready. If we do not produce anything and disruptions happen, we will face the same problems we saw during Covid-19 when food prices skyrocketed,' he cautioned. Ultimately, Phoong said diversifying into manufacturing is critical not only for economic growth but also for Sabah's resilience. 'We cannot just rely on the primary sector anymore. It is time to build a more competitive, reliable and sustainable economy for Sabah,' he said.
