SABAH is looking to convert its 5.1 per cent economic growth last year into higher-value industries, better-paying jobs and stronger local businesses, with construction, manufacturing and services driving its gross domestic product to RM88.8 billion.
Chief Minister Datuk Seri Hajiji Noor said the priority now was to ensure the expansion translated into more competitive businesses, higher-value economic activity and better prospects for communities across the state.
Sabah’s economy grew at its fastest pace in six years, led by the construction sector, which surged 28.3 per cent, while manufacturing expanded 5.0 per cent and services grew 4.5 per cent.
“Sabah saw strong growth momentum. Our responsibility now is to translate this into more competitive local businesses, high-value industries, better job opportunities and greater prospects for communities in the state,” he said.
Deputy Chief Minister II Datuk Seri Masidi Manjun, who is also the state Finance Minister, delivered Hajiji’s speech at the opening of the Securities Commission Malaysia’s Kembara Borneo 2026 programme here on Wednesday.
Hajiji said the Sabah Maju Jaya (SMJ) 2.0 development framework for 2026-2030 would build on the recovery achieved under SMJ 1.0 by prioritising competitiveness, productivity and higher-value economic activities.
The state’s investment pipeline will be supported by a development allocation ceiling of RM12.02 billion under the 13th Malaysia Plan, covering 933 new projects and 240 ongoing projects.
He said Sabah’s ambition extended beyond attracting investment to helping home-grown companies expand nationally and internationally by fostering innovation, resilience and entrepreneurship among young people.
The state is also looking to unlock greater economic value from its natural resources. Under SMJ 2.0, the Blue Economy sector has the potential to generate additional revenue of up to RM3.25 billion annually through modern fisheries, marine biotechnology and nature-based tourism.
In agriculture, Hajiji said the food industry needed to adopt advanced technologies and expand downstream processing so that more economic value could be retained within Sabah rather than lost through the export of less-processed products.
Sabah’s location in Borneo, close to Brunei, Indonesia and the Philippines, also positions it to strengthen regional trade, investment and tourism links through the Brunei Darussalam-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA) and Asean.
To help local businesses capitalise on these opportunities, Hajiji welcomed the Securities Commission’s efforts to widen access to alternative financing, including equity crowdfunding, peer-to-peer financing, private equity and venture capital.
He also welcomed the Malaysia Co-Investment Fund’s Food Security Scheme, under which the fund provides RM1 in co-investment for every RM2 invested by private investors to support the agrotechnology and bioeconomy sectors.
Hajiji urged local entrepreneurs to improve their financial records, corporate governance and risk management to strengthen investor confidence and prepare their businesses to raise capital.
He also called on financiers and capital market intermediaries to explore investment opportunities in Sabah, particularly in aquaculture, downstream processing, manufacturing and tourism infrastructure.
“Sabah has the resources, strategic location, entrepreneurs and big aspirations. We therefore need to strengthen the links between local businesses and the capital and strategic partnerships required for continued growth,” he said. - October 15, 2026