By WU VUIDE
KOTA KINABALU: The manufacturing sector remains a key driver of Sabah’s economy as continued investment helps promotes technological integration, infrastructure development, and job creation.
Focus will be given to expanding downstream activities including biomass, palm oil, industrial tree plantations, and oil and gas, said Head of State, Tun Musa Aman.
“In 2024, Sabah recorded RM6.5 billion in total investments, with 38.7 per cent from manufacturing,” said Musa in the State Government’s policy address of the opening of the fifth session of the 16th Sabah Legislative Assembly here yesterday.
The commitment to sustained investment is reflected in plans to develop three new industrial parks in Kudat, Kota Belud, and Beaufort, expected to boost local jobs and investment over the next 5 to 10 years, he said.
Strengthening food security and agricultural productivity – On the Third Sabah State Agriculture Policy (2017–2026), he said the rice industry is prioritised to achieve 60 per cent self-sufficiency (SSL) by 2030.
“Research and innovation efforts have produced 12 new crop varieties between 2021 and 2024, including Tuaran Quality Rice 3 (TQR3), which offers high yield and disease resistance,” said Musa.
Sabah aims to become a major avocado producer by 2030, alongside expanding premium export crops like Musang King durian and MD2 pineapple, he added.
Despite exceeding 100 per cent SSL in fisheries, he said the focus remains on enforcement, investment, deep-sea fishing, and commercial aquaculture.
SSL in livestock rose from 2.94 per cent (2021) to 9.33 per cent (2024), with a 25 per cent target by 2030, he added.
Strengthening the tourism sector – Sabah’s tourism sector recorded 3.1 million tourist arrivals in 2024, a 20.4 per cent increase from 2023, with spending rising to RM7.28 billion, he said, adding that growth was driven by more direct international flights.
In 2025, he said the State targets 3.5 million arrivals, supported by intensified promotions, major tourism events, and expanded airline partnerships ahead of Visit Malaysia Year 2026.
“Key focus areas include improving infrastructure, cleanliness at tourist spots, and airport upgrades in Kota Kinabalu and Tawau.
“Under 13th Malaysia Plan (13MP), Sabah also aims to develop sustainable tourism, including listing Tun Mustapha Park under the IUCN Green List,” he said.
Enhancing infrastructure, utilities and sustainable energy – The 706-km Pan Borneo Highway Phase 1 is being expedited for completion by 2029, he said.
“Water supply initiatives include increasing treated water output, expanding rural access, and implementing the Ulu Padas scheme integrated with the Upper Padas Hydroelectric Project,” said Musa.
To increase electricity capacity, he said interim and fast-track projects like substation upgrades and capacitor installations are underway, aiming to boost reserve margins from under 10 to 29 per cent by year-end.
“Sabah targets 50 per cent renewable energy by 2035, with hydro projects due by 2030 and further developments planned until 2040,” he said.
In line with carbon neutrality goals by 2050, he said Sabah is pursuing hydro, solar, wind, geothermal, bioenergy, and OTEC, supported by the upcoming Sabah Energy Efficiency Action Plan.
Empowering human capital through education and training – The State Government prioritises human capital development to build a competent and competitive workforce, he said.
“RM42.14 million in educational aid has benefited over 60,000 recipients. New one-off initiatives include SENTOSA and SUKSES.
“Scholarships continue to support native Sabahan students pursuing higher education locally and abroad.
“TVET and capacity-building programmes are being enhanced to ensure a skilled and relevant workforce,” added Musa.
Under the SMJ Development Plan, he said free soft skills courses in STI and languages involved over 35,000 participants in 2024.
Women empowerment efforts include entrepreneurship and leadership programmes, with stronger marketing for their products, he said.
In the energy sector, he said 17 technical training centres have been accredited, including UMS’s gas competency centre.
Strengthening youth and sports development – “The Sports Development Plan 2021–2030 supports youth excellence through improved facilities, including 19 sports complexes and 151 rural courts,” he said.
Enhancing a quality, innovative, and integrity-driven civil service – The government will introduce DLSM and an integrated HR system, alongside high-impact training for civil servants, he said.
The Sabah Digital Government Innovation (SDGI) master plan will drive digital transformation, using AI to enhance efficiency and innovation across sectors, he said.
“Governance and anti-corruption efforts include expanding the i-Adu 2.0 system and mobile app to strengthen public oversight,” said Musa.
Driving balanced regional development – Phase one of the hardcore poverty eradication programme removed 22,510 families from the hardcore poor list as of July 31, 2024.
The SMJ affordable housing programme has doubled allocations, enabling 40 houses per state constituency, he said adding, public and affordable housing continues for the B40 group.
The Sabah Energy Roadmap and Master Plan (SE-RAMP) 2040 targets 100 per cent rural electricity by 2030, he said.
“The Alternative Rural Water Supply (BALBA) initiatives from 2021–2024 benefited over 8,000 residents across 46 villages and 29 districts,” he said.
Through people income initiative, he said Sabah exported 15 tonnes of MD2 pineapples in February, benefiting 450 rural farmers and boosting the agricultural sector.
Supporting inclusive development for the well-being of the people – The State Government has established the Sabah Autism Centre in collaboration with Universiti Malaysia Sabah to provide diagnostic services, early intervention, and therapy for children with autism, he said.
Preserving natural resources – The State Government has launched the Sabah Biodiversity Strategy 2024–2034 to preserve biodiversity and promote fair benefit-sharing, he said.
The Sabah Biotechnology Action Blueprint 2024–2034 aims to enhance research and innovation in biotechnology across various sectors, positioning Sabah as a hub for conservation and biotechnological innovation, he said.
“The State Government targets to gazette 30 per cent of Sabah’s land as Totally Protected Areas by 2025, with 27 per cent already gazetted,” said Musa.
Efforts to mitigate and adapt to climate change are ongoing, including studies on the impact of climate change and drafting a Climate Change Enactment for Sabah, he said.
Strengthening land administration efficiency – This will be carried out through digitalisation, developing systems like Smart Geo Sabah and 3D building applications for efficient land management, he said.
“The government remains committed to issuing native titles and gazetting reserve lands for native villages, with a target to survey and gazette more land in 2025,” he said.
Improving financial performance and governance – “Sabah’s revenue exceeded RM6 billion in 2024, achieving RM6.842 billion, thanks to contributions from various sectors.
“To diversify income sources, the government imposed the State sales tax on new products, including silica sand, palm biomass, and mined gold and silver.
“The State Government continues to maintain transparency in financial management, with a 22-year streak of receiving excellent audit results,” he said.
“The government is improving financial governance by refining procurement procedures and transforming State statutory bodies and government-linked companies,” he said.
Preparation for the 13th Malaysia Plan – The State Government has outlined a strategic development plan for the next five years under the 13MP, focusing on key priority areas for economic growth, he said.
“Implementation will focus on development projects and programmes, enhancing financial management, and accelerating the achievement of economic goals,” said Musa.
