KOTA KINABALU: Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor said Sabah’s Gross Domestic Product (GDP) increased from RM77.80 billion in 2020 to RM84.30 billion in 2024, the highest recorded since the COVID-19 pandemic.
He said this reflected the effectiveness of the State Government’s fiscal policies, particularly in prudent revenue management and efficient collection systems.
“This demonstrates the resilience of the state’s economy despite facing a challenging global economic environment due to geopolitical tensions, commodity market uncertainty, and the slowdown of the international economy.
“For 2025 and 2026, the State’s growth momentum is expected to continue strengthening through the implementation of high-impact projects, with a projected increase of around 1.5 to 2 per cent,” he said at the 2025 Sabah Civil Service Convention held at the Sabah International Convention Centre (SICC) today.
In addition, the State Government has managed to control inflation in an orderly manner, with Sabah’s inflation rate at 1.2 per cent in 2024, which was lower than the national rate of 1.8 per cent.
He added that this achievement was also due to government stimulus initiatives, such as the Micro Credit Loan Scheme, which has empowered small and medium-sized entrepreneurs with a total approved financing worth RM2.37 million for 1,210 applications to date.
Moving into the 13th Malaysia Plan (13MP), which begins in 2026 to 2030, Hajiji said Sabah remains among the states receiving the highest development allocations, amounting to RM6.9 billion for 2026, which is expected to accelerate the state’s socio-economic growth.
Meanwhile, on June 4, 2025, the Sabah State Cabinet approved a development expenditure ceiling of RM12.02 billion under 13MP, covering 1,173 development programmes and projects, the highest development allocation in the State’s history, he said.
Hajiji said that to ensure efficient service delivery, the government has developed a Good Regulatory Practice Policy aimed at enhancing the quality of regulations and eliminating those that are ineffective for the economy and public welfare.
“Over the past five years, 48 new and amended Bills have been introduced to ensure these objectives are achieved,” he said.
To further strengthen integrity strategies, the Sabah Integrity and Governance Division (BIGoNS) was established on July 26, 2022, to oversee compliance with integrity standards.
He added that digitalisation has become the core of more effective and efficient service delivery, with the Sabah Data Integration and Interchange Platform (Sabah DIIP) developed under the State Government’s Digitalisation Strategic Plan.
“In addition, the Government has recorded over 10,000 active Google Workspace accounts provided for government staff to enhance connectivity and civil service productivity.
“As part of this, a total of 290 system application projects have been developed and implemented across the state, while another 53 Public Service Digitalisation Projects are actively being carried out towards full digital transformation,” he said.
During his five years heading the State Government, Hajiji said the implementation of the Hala Tuju SMJ 1.0 development plan, which covered multiple economic sectors, had achieved remarkable progress and results that exceeded expectations.
In the agricultural sector, for instance, one notable achievement was a RM620 million investment in coconut cultivation and downstream industries by Linaco Resources Sdn Bhd.
“Sabah’s investment performance reflects investor confidence in the Government, supported by the efficiency of the civil service. From 2021 until the second quarter of this year, the manufacturing sector recorded RM24.9 billion in investments from 87 foreign and domestic investors,” he said.
He said major high-value investments included RM4.29 billion from SK Nexilis, RM3.43 billion from SBH Kibing Solar, as well as Esteel Enterprise Sabah Sdn Bhd, which has a three-phase investment totalling RM6.59 billion.
PETRONAS has also begun operations at the Sipitang Oil and Gas Industrial Park (SOGIP), showing that investments in the state are not limited to domestic sources but also from international investors, he said.
He added that these investments have benefited the people of Sabah as a whole, creating more than 38,000 job opportunities for locals.
One of the government’s most significant achievements in the oil and gas sector was the signing of the Commercial Collaboration Agreement (CCA) between the Sabah State Government and PETRONAS on December 7, 2021, marking a new era of Sabah’s participation in the industry, he said.
As a result, Sabah Energy Corporation (SEC) has been appointed as the main gas supplier and transporter, now possessing domestic gas capacity exceeding 250 million cubic feet per day, with the industry’s total revenue expected to surpass RM2.5 billion annually — making it one of the state’s primary revenue contributors.
SMJ Energy Sdn Bhd, a wholly-owned Sabah government company, which initially started with limited capital, has grown its value to RM5 billion within three years, with total assets of RM4.9 billion and a profit of RM307 million, he said.In the tourism sector, Hajiji said Sabah recorded 10.67 million tourist arrivals with total spending reaching RM23.42 billion between 2021 and 2025.
The state’s vast tourism potential has spurred significant tourism-based developments by prominent companies, including Sheraton Hotel Kota Kinabalu, Club Med Borneo Kuala Penyu, InterContinental Hotel Papar, Hilton Garden Inn Resort Tuaran, Hyatt Centric Hotel Kota Kinabalu, and Citadines Waterfront Hotel Kota Kinabalu, he said.
“Additionally, with an increase to 207 domestic and 126 international flights at KKIA each week, it proves Sabah remains a key destination, especially for tourists from Brunei, China, Indonesia, the Philippines, Singapore, South Korea, Taiwan, and Vietnam.
“The growth of the tourism sector has also generated over 360,000 job opportunities since 2023 through the preservation and restoration of historical sites, the upgrading and construction of recreational facilities, and urban beautification projects that benefit the local community,” he said.
Hajiji said the government remains committed to ensuring educational opportunities for Sabah’s youth to produce a highly skilled workforce.
He said the allocation for education funds in Sabah has increased drastically over the past five years through various scholarship platforms, totalling RM1.02 billion.
“The State Government Scholarship allocation alone has tripled this year compared to previous years, amounting to RM145 million and benefiting 12,763 students,” he said.
Recently, following the major decision to recognise the Unified Examination Certificate (UEC), the State Government has offered a scholarship to 37 students with this qualification, he added.
He also said the Government has allocated RM4.89 billion specifically for managing infrastructure, particularly roads, which have expanded to 22,858 kilometres in 2024, compared to 21,876 kilometres in 2021.
To address water supply issues, Hajiji said the number of Water Treatment Plants has increased to 90 in 2024, compared to 85 in 2021 — boosting treated water production capacity from 1,505 million litres per day to 1,630 million litres per day.
Meanwhile, several projects are currently underway and are expected to be completed this year, including the Telibong II Water Treatment Plant Capacity Expansion Project, the Beluran Water Treatment Plant Upgrade, the Kanibongan Water Treatment Plant Upgrade, and the Kasigui Urgent Water Supply Scheme (UWSS).
Another 18 projects, financed through an interest-free loan of RM320.25 million from the Federal Government, are expected to be completed next year, he said.
For electricity supply, he stated that the Sabah Energy Council has approved 11 projects with a total capacity of 1,219 megawatts, which are expected to be completed by 2031.-pr/BNN
