KOTA KINABALU: The passing of the Climate Change and Carbon Governance Enactment 2025 at the recent Sabah State Assembly sitting has opened up opportunities for Sabah to attract investors, said Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor.
“This legal foundation gives investors the certainty they need. But the bigger opportunity lies in ASEAN cooperation. To grow this space, we need a functioning regional carbon market.
“That means common standards, regulatory alignment, and mutual recognition of credits across borders. A fragmented system will only delay investment.
“Sabah is ready to work with other ASEAN countries to push this agenda forward. Our forests are already doing their part.
Now the frameworks must catch up,” he said at the ASEAN Sustainable Forestry Summit 2025 held at the Shangri-La Tanjung Aru Resort today.Finance Minister Datuk Seri Panglima Masidi Manjun delivered his speech.
Hajiji said the Enactment creates the Sabah Climate Action Council, a Climate Fund, a statelevel emissions inventory, and a framework for benefit-sharing, particularly with indigenous communities.
“Carbon rights have been legally affirmed as belonging to the state government. And carbonrelated activities from project approval to credit trading will now be governed by a clear and enforceable structure,” he said.
The Chief Minister reiterated that Sabah is now a net sink jurisdiction – absorbing more carbon than it emits.
“We are among the rare few jurisdictions in the world to hold this status, and it is estimated that Sabah alone contributes approximately 36 per cent of Malaysia’s total carbon sequestration.
“This is more than an environmental milestone. It is a strategic economic asset. In a carbonconstrained world, it is a competitive advantage we cannot afford to lose,” he said.Hajiji said forestry is central to Sabah’s economy, environment, and future.
“Under the State Government’s development plan, the Hala Tuju Sabah Maju Jaya (SMJ), we have embedded sustainable forestry into our long-term growth strategy.
“In 2022, we introduced the Forest Plantation Development Action Plan, a 15-year blueprint to rehabilitate 400,000 hectares of degraded forest. This initiative is not just about replanting trees.
It is about securing a reliable timber supply, generating green jobs and strengthening rural economies.“
Achieving the targets set out in this plan requires the continued commitment of Forest Management Unit (FMU) licence holders and working in close partnership with the Sabah Forestry Department,” he said.
In this regard, Hajiji urged all FMU licence holders to fulfil their obligations while the Sabah Forestry Department strengthens its role in tracking progress and ensuring that implementation stays on course.
Once fully realised, the plan is projected to contribute more than RM11 billion to Sabah’s GDP and create 40,000 jobs across the value chain, he said.
He also said timber remained a strategic sector for Sabah, with timber royalties rising to RM171 million in 2024, marking an increase of RM16 million from the previous year.“Export volumes have also grown steadily, especially to Japan, the United States and Taiwan.
Our target is clear: to reduce dependence on natural forests and scale up plantationbased, sustainable timber production,” he said.
At the same time, he noted that Sabah, as the largest producer of crude palm oil (CPO) in Malaysia, contributing over 25 per cent of the national output, is also advancing its leadership in the palm oil industry.
“In 2024, Malaysia’s CPO production reached 19.3 million tonnes, which is the highest in six years, and global demand remains strong. We are leveraging this advantage to attract investments in downstream processing, biofuels, and palm-based innovation.
Facilities such as the Palm Oil Industrial Cluster in Lahad Datu and the Sipitang Oil and Gas Industrial Park have positioned Sabah as a hub for value-added manufacturing and biomass development, making them the engines of transformation, he said.
“Forestry and climate are now at the core of economic strategy for Sabah, for Malaysia and ASEAN. This Summit reflects that shift.
We are no longer treating sustainability as optional. It is part of how we create jobs, attract investment, and strengthen resilience,” he said.
In a nutshell, the Chief Minister stated that with clear laws, strong institutions, and the SMJ Roadmap to guide implementation, Sabah is well-prepared for the carbon market.
“Our forests and communities are already doing the hard work of carbon sequestration, biodiversity protection and sustainable use. But we cannot do this alone.
“We welcome those who bring capital, expertise and long-term partnerships from ASEAN and beyond. Invest in Sabah. You are investing in a state that is stable, strategic, and serious about a green future,” he said.
Jointly organised by the KSI Strategic Institute for Asia Pacific and the ASEAN EconomicClub, the Summit brings together policy makers, business leaders and environmental experts from across Southeast Asia to address thr urgent need for sustainable forestry and climate resilience.-pr/BNN
