Sabah targets higher-value growth as GDP expands 5.1%, fastest in six years

Sabah is aiming for higher-value growth following a 5.1% expansion in GDP last year, the fastest economic growth in six years. The state's development allocations under the 13th Malaysia Plan, totaling RM12.02 billion, coupled with improved access to capital markets, will drive this transformation. Construction leads the way with a 28.3% surge, while manufacturing and services also show growth at 5.0% and 4.5% respectively.

Chief Minister Hajiji Noor emphasized the need to ensure this growth translates into more competitive businesses, high-value industries, and better job prospects across Sabah. Deputy Chief Minister II Datuk Seri Masidi Manjun, who also serves as Finance Minister, delivered this message at the Securities Commission Malaysia's 2026 Kembara Borneo programme.

The Sabah Maju Jaya (SMJ) 2.0 framework for 2026-2030 will prioritize competitiveness, productivity, and high-value economic activities, backed by the RM12.02 billion development allocation ceiling. The state aims to tap into its potential in the Blue Economy, agriculture, and regional trade through the BIMP-EAGA and Asean. To capitalize on these opportunities, Hajiji called for stronger links between local businesses and capital, urging financiers and capital market intermediaries to explore investment opportunities in areas like aquaculture, manufacturing, and tourism infrastructure.