Ekonomi Sabah berkembang 5.1%, KDNK cecah RM88.8 billion

Sabah's economy grew by 5.1% last year, marking the best performance in six years, with domestic output (KDNK) reaching RM88.8 billion, stated Chief Minister Hajiji Noor. The robust growth was fueled by a strong construction sector, which expanded by 28.3%, followed by manufacturing at 5.0% and services at 4.5%. Chief Minister Noor emphasized that the focus should now be on translating this momentum into more competitive domestic industries, high-value sectors, better jobs, and more opportunities for Sabahans nationwide.

Hajiji Noor, in his speech to the Sabah Borneo 2026 Edition launch ceremony organized by the Securities Commission Malaysia (SC), explained that this focus would be achieved through the Sabah More Prosperous and Prosperous (SMJ) 2.0 framework for the 2026-2030 period, which emphasizes increasing competitiveness, productivity, and high-value creation, following the success of SMJ 1.0's recovery phase.

The investment prospects in Sabah will continue to strengthen through the maximum development budget ever in Sabah's history, totaling RM12.02 billion under Malaysia's 13th Malaysia Plan (RMK13), which includes 933 new projects and 240 expansions.

The chief minister highlighted that Sabah's aspirations are not just about attracting investments to the state but helping local companies grow into national, regional, and global leaders through nurturing creativity, resilience, and entrepreneurship among the young generation. Regarding the potential of the state's natural resources, Hajiji stated that exploration in the blue economy sector has the potential to generate additional revenue of RM3.25 billion annually under SMJ 2.0 through modern fishing, marine biotechnology, and eco-tourism.

He also stressed that Sabah's geographical location between Brunei, Indonesia, and the Philippines makes it a strategic gateway for trade, investment, and tourism among the BIMP-EAGA and ASEAN regions.

To support this, Hajiji welcomed the SC's move to expand access to alternative financing for local businesses through the Equity Crowdfunding Fund (ECF), peer-to-peer (P2P) financing, private and venture capital. He also urged the state government to promote the Food Assurance Scheme under MyCIF, which provides RM1 of joint investment for every RM2 of private investor funds to finance the agri-tech and bioeconomy sectors.

Hajiji reminded local entrepreneurs to polish their financial records, solidify corporate governance, and manage risk to convince investors before raising capital. He also called for enhanced cooperation and strategic partnerships to leverage Sabah's vast potential in areas such as aquaculture, wastewater processing plants, manufacturing sites, and tourism facilities.