29-07-2025
- Business
- New Straits Times
Sabah puts forestry, climate at heart of economic strategy
KOTA KINABALU: Forestry and climate are at the heart of Sabah's economic strategy, with sustainability viewed as key to creating jobs, driving growth, and attracting investment, said Chief Minister Datuk Seri Hajiji Noor.
"We are no longer treating sustainability as optional. It is part of how we create jobs, attract investment, and strengthen resilience.
"Our forests and communities are already doing the hard work of carbon sequestration, biodiversity protection and sustainable use. But we cannot do this alone.
"We welcome those who bring capital, expertise and long-term partnerships from Asean and beyond," he said, adding Sabah is stable, strategic, and serious about a green future.
Finance Minister Datuk Seri Masidi Manjun delivered Hajiji's speech at the Asean Sustainable Forestry Summit 2025 today.
With clear laws, strong institutions, and the Sabah Maju Jaya Roadmap to guide implementation, the chief minister said that Sabah is well-prepared for the carbon market.
The passing of the Climate Change and Carbon Governance Enactment 2025 at the recent Sabah State Assembly sitting has opened up opportunities for Sabah to attract investors.
"This legal foundation gives investors the certainty they need. But the bigger opportunity lies in Asean cooperation.
"To grow in this space, we need a functioning regional carbon market. That means common standards, regulatory alignment, and mutual recognition of credits across borders. A fragmented system will only delay investment.
"Sabah is ready to work with other Asean countries to push this agenda forward. Our forests are already doing their part. Now the frameworks must catch up," he said.
As for forestry, Sabah has introduced a 15-year Forest Plantation Development Action Plan in 2022 to rehabilitate 400,000 hectares of degraded forest.
The initiative is about securing a reliable timber supply, generating green jobs and strengthening rural economies.
"Achieving the targets set out in this plan requires the continued commitment of Forest Management Unit (FMU) licence holders and working in close partnership with the Sabah Forestry Department," he said.
In this regard, Hajiji urged all FMU licence holders to fulfil their obligations while the Sabah Forestry Department strengthens its role in tracking progress and ensuring that implementation stays on course.
Once fully realised, the plan is projected to contribute more than RM11 billion to Sabah's GDP and create 40,000 jobs across the value chain, he said.
Hajiji also said timber remained a strategic sector for Sabah, with timber royalties rising to RM171 million in 2024, marking an increase of RM16 million from the previous year.
"Export volumes have also grown steadily, especially to Japan, the United States and Taiwan. Our target is clear: to reduce dependence on natural forests and scale up plantation-based, sustainable timber production," he said.
