Sabah
From The Report: Malaysia 2016
View in Online Reader

One of the largest of Malaysia’s 13 states, Sabah is banking on an economic development strategy that aims to make the most of its strategic position in the South China Sea, the beauty of its landscape and the riches of its natural environment. The plan centres on the Sabah Development Corridor (SDC), one of five economic development zones established throughout Malaysia and designed to encourage growth by targeting investment in key industries. In Sabah, the corridor covers the entire state and is focused on developing natural resources, especially hydrocarbons, and agriculture – predominantly palm oil, but also including food crops. Sabah is also looking to increase tourism, with Mount Kinabalu (South-east Asia’s tallest mountain), some of the world’s most stunning dive sites, and iconic wildlife, attracting visitors from across the globe. This chapter contains interviews with Musa Aman, Chief Minister, Sabah; Mohd Yaakub Johari, President and CEO, Sabah Economic Development and Investment Authority; Clarence Bongkos Malakun, Chairman, Institute for Development Studies Sabah; and Melvin Disimond, CEO, Kota Kinabalu Industrial Park.

Articles from this Chapter

Overview

A state apart: Major public and private initiatives are driving development in key sectors
OBG
plus

One of the largest of Malaysia’s 13 states, Sabah is banking on an economic development strategy that aims to make the most of its strategic position in the South China Sea, the beauty of its landscape and the riches of its natural environment. The plan centres on the Sabah Development Corridor (SDC), one of five economic development zones established throughout Malaysia that are planned to encourage growth by targeting investment in key industries. In Sabah, the corridor covers the entire state…

Interview

Expediting progress: OBG talks to Musa Aman, Chief Minister, Sabah
OBG
plus

Interview: Musa Aman How could the federal government’s decision to possibly devolve power to Sabah help the state’s development plans in the future? MUSA AMAN: It was timely when the prime minister announced the devolution of power to the states of Sabah and Sarawak on Malaysia Day in 2015. It not only clearly demonstrates the federal government’s confidence in the state governments, but also gives them significant roles in their own development. Greater control and allowing more decision-making…

Analysis

Growth driver: The state is attracting further investment in critical sectors
OBG
plus

The Sabah Development Corridor (SDC) was launched in 2008 and covers the whole of Sabah. It is now entering its third phase of development, which is likely to create more opportunities for foreign investors, particularly in the areas of tourism, hydrocarbons and palm oil-related ventures. By 2025 the goal is that the initiatives under the SDC will have tripled Sabah’s GDP per capita and increased total GDP by four times. The Sabah Economic Development and Investment Authority (SEDIA), which is…

Interview

Broadened horizons: OBG talks to Mohd Yaakub Johari, President and CEO, Sabah Economic Development and Investment Authority (SEDIA)
OBG
plus

Interview:Mohd Yaakub Johari Have SEDIA’s priorities shifted following the launch of the 11th Malaysia Plan (11MP)? MOHD YAAKUB JOHARI: We are heading towards the third and final phase in the growth of Sabah Development Corridor (SDC), having established much of the architecture to support investment, accompanied by incentives customised to investors’ requirements. Key to the third phase will be expansion of Sapangar Container Port, a master plan for the planned aviation and air freight…

Analysis

Building the brand: Concerted efforts are under way to expand the state’s range of visitor options
OBG
plus

With its stunning rainforests, beautiful beaches and rich biodiversity, Sabah’s potential as a tourist destination is undeniable. Yet while a series of incidents have slowed the sector’s development since 2014, there are abundant signs of a strong recovery, and decisive steps are being taken to position the sector for future growth. In Figures The year 2015 saw 3.17m tourists touch down on Sabah’s shores, a 1.7% drop from the 3.23m tourists that visited the state in 2014. Revenue also fell…

Interview

Building capacity: OBG talks to Clarence Bongkos Malakun, Chairman, Institute for Development Studies Sabah
OBG
plus

Interview:Clarence Bongkos Malakun How do you see Sabah’s ICT sector developing? CLARENCE BONGKOS MALAKUN: Without Multimedia Super Corridor (MSC) status the climate would have been very unfavourable for tech entrepreneurs in Sabah and East Malaysia. Companies desiring MSC status had to relocate to Peninsular Malaysia to be situated within the MSC itself or in one of its designated zones, which was a costly process. Now that this requirement has been eliminated, it will be far easier for…

Interview

The blueprint: OBG talks to Melvin Disimond, CEO, Kota Kinabalu Industrial Park (KKIP)
OBG
plus

Interview:Melvin Disimond How crucial is the expansion of Sapangar Port to advancing Sabah’s economic development? MELVIN DISIMOND: It is one of the last pieces in the puzzle in establishing Sabah’s investment platform. The state’s power generation challenges have largely been addressed, as has the need for industrial land, and now, with the expansion of the port, we will be addressing concerns about the cost of doing business. By enhancing the port and accompanying facilities we expect…

Analysis

Linking in: The state is rolling out multiple transport infrastructure upgrades
OBG
plus

Developing Sabah’s infrastructure – from the provision of basic services such as electricity, water and sewers to crucial transport links such as ports, airports and roads – has long been vital to the state’s development but, given its mountainous terrain and relatively small population, is also a major logistical challenge. As in the rest of Malaysia, the state has relied increasingly on investment from the private sector, including government-linked companies and foreign-owned firms, to…

Analysis

Connecting the dots: The oil and gas industry heads downstream
OBG
plus

With major oil and gas deposits offshore, Sabah has long been a key part of Malaysia’s hydrocarbons industry – a major driver of the national economy. Indeed, since the first commercial discoveries were made offshore in the Sabah Delta Basin back in the early 1970s, oil and gas have made up a considerable slice of Sabah’s state revenues. This region, and the nearby Baram Delta Basin, is still proving lucrative, with discoveries continuing up to recent times. Examples include Murphy Oil’s…