Sabah

• Total trade volumn of RM118 bil in 2022
• 6th highest GDP contributor of RM78 bil in 2021
• Highest labour force participation in Malaysia
• RM11.5 bil in investment value in 2022 (manufacturing & services)
• Ranked 5th in top investment destination
• UNESCO triple crown alongside Jeju Island and Shennongjia
• World-class tourist destination
• Abundance of resources and raw materials
• Environmental, social and governance (ESG) integration
• 33 diverse group of ethnic background

• Manufacturing
  • Oil & gas, timber, agriculture, and heavy industries
  • RM11.5 bil investment value in 2022
• Human Capital
  • Highest labour force participation in Malaysia
  • 3.4 mil, 2nd largest population in Malaysia
• Tourism
  • UNESCO Triple Crown
  • Home to the highest peak in Southeast Asia, Mount Kinabalu
  • Diving heaven with Sipadan Island listed as one of the best dive sites in the world
  • 2nd busiest airport in Malaysia
• Agriculture

• A network of 5 airports
• Total of 8 seaports
• 5,324 kilometre Pan Borneo Highway

One SDC initiative to raise Agri productivity through technology & innovation. A wide range of food crops are produced in Sabah. Agrifood productivity in Sabah is low relative to Peninsular Malaysia across all food crops. Livestock population & output is low relative to Peninsular Malaysia across most types of livestock. Sabah’s livestock selfsufficiency levels (SSL) are low relative Malaysia for cattle & buffalo. Sabah’s low levels of food crop production have resulted in a negative food trade balance.

Sabah holds about 36% of Malaysia’s oil reserves and 15.8% of gas reserves. Sabah is the top palm oil producer in Malaysia, with 25.4% of total output. Sabah exported 0.4mil m3 of timber, generating RM 1.1 billion.

K3 focused on driving development of the logistics sector (sea freight & air cargo) to support manufacturing, agro-food & agro-marine exports. High costs in logistic for industries in Sabha compounded by the slow pace of infrastructure development, and unclear policy support. The volume of container exports is relatively low while port and airport infrastructure have limited capacity. Policies favouring shipping lines shift costs to industry.

K4 prioritizes the development of the capture fisheries and aquaculture industry. Sabah serves as a net exporter of fish and fish products. The fisheries and aquaculture sector primarily thrives in the Eastern Region, particularly Semporna, and the northern part of the Western Region, including Pitas and Kudat. The main markets for fresh and frozen prawns include China, Korea, Taiwan, Hong Kong, Australia, Vietnam, and Japan. Interstate exports, to Sarawak and Peninsular Malaysia, make up 17% of the total seafood exports.

K5 focuses on utilizing Sabah’s extensive biomass resources, notably from oil palm plantations. Despite its vast volume, only a small fraction of oil palm biomass is currently used for energy generation, with the majority being discarded. The National Biomass Strategy aimed to create 25,000 new jobs and offer RM 13.5 billion in investment opportunities by 2020 in Lahad Datu, Sandakan, and Tawau.

K6 focuses on advancing the digital economy in Sabah, starting with Kota Kinabalu as the state capital and the hub for administrative and financial services. While the services sector remains the primary contributor to Sabah’s GDP, tourism aside, it’s largely comprised of SMEs engaged in low value-adding activities, lacking innovation and competitiveness on regional and global scales. Building a liveable and competitive city is crucial to nurturing the digital economy and promoting a dynamic services sector. Greater Kota Kinabalu attracts business visitors, investors, and tourists, offering diverse attractions.

By 2019, visitor arrivals in Sabah reached 4.2 million, surpassing the targeted 4.1 million visitors set for 2020. This achievement is attributed to Sabah’s natural assets and was primarily facilitated by affordable regional air travel. The state is conveniently accessible within six hours from major East Asian cities, served by 216 international flights per week from 20 cities, including 11 from China and three from South Korea. Additionally, there are 447 domestic flights per week from nine cities across Malaysia.