KOTA KINABALU: Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor said Sabah has registered a record high total economic output of RM84.3 billion in 2024, continuing a strong upward trend since 2021.
“Total trade value has also surpassed RM100 billion for three consecutive years, with a peak of RM118 billion in 2022, a testament to our growing global connections,” he said at the Malaysia Co-Investment Fund (MyCIF) Nationwide Roadshow in Le Meridien Hotel here today.
His speech was delivered by Minister of Industrial Development and Entrepreneurship Datuk Phoong Jin Zhe.
“Sabah’s economic transformation has been remarkable. From an economy rooted in primary sectors, we’ve grown into a multi-faceted powerhouse. Sectors such as tourism, manufacturing, and services are our present and future.
“As we align ourselves with Malaysia’s broader economic objectives, our commitment to growth has remained unwavering and this has been reflected in our five-year Hala Tuju Sabah Maju Jaya (SMJ) roadmap we crafted in 2021, resting on three foundational pillars of agriculture, industry and tourism,” he said.
The Chief Minister said Sabah’s focus is now shifting towards downstream processing and valueadded industries.
It included the landmark Commercial Collaboration Agreement (CCA) with Petronas, which gave Sabah greater participation and a greater share in the oil and gas sector, as well as new industrial parks in Kota Belud, Beaufort, and Kudat for the Blue Economy Industrial Park, poised to attract significant investments, he said.
Agriculture remained a cornerstone, he said, adding that Sabah is expanding paddy cultivation, introducing crop takaful schemes, and focusing on high-value crops, such as MD2 pineapples.
“Our new Rural Agricultural Economic Revolution (RAER) plan (2025-2030), with an initial RM10 million allocation, is specifically designed to uplift our rural economies, diversify income sources, and reduce unemployment through agri-sector opportunities,” he said.
Hajiji reiterated that Sabah is now actively promoting the Blue Economy, exploring marine harvests, ocean-based renewable energy sources such as the Ocean Thermal Energy Conversion (OTEC) system and marine biotechnology.
Furthermore, he said there is immense potential in green technology and the digital economy, attracting significant investments like the RM31 billion Esteel Enterprise Sabah project.
“Despite this impressive trajectory, we recognise that most Micro, Small, and Medium Enterprises (MSMEs) still face persistent challenges in accessing the capital needed to innovate, expand, and fully capitalise on these opportunities.
“Traditional financing models, while vital, sometimes present hurdles such as collateral requirements, lengthy processes or a limited understanding of niche, innovative ventures unique to Sabah’s landscape,” he said.
“Enhancing access to alternative financing to overcome these limitations includes bridging financing gaps by providing MSMEs with access to accessible funding and financing as alternatives to traditional bank loans.
“This also includes encouraging local entrepreneurs to leverage MyCIF’s matching investment model to scale their businesses.
With readily available financing, this offers a lifeline to businesses in remote areas, or those in specialised sectors like eco-tourism and small-scale sustainable agriculture, who often find it difficult to secure traditional loans,” he added.
Hajiji said that alternative finance would also make it ideal for Sabah’s young, innovative entrepreneurs in the digital and creative spaces, who need responsive funding to bring their ideas to fruition, aligning with the State Government’s diversification goals.
“We see a new generation of Sabah entrepreneurs, especially in the digital and creative spaces, who need agile and responsive funding.
“Crucially, these platforms allow individual Sabahans and local investors to directly support Sabah businesses, strengthening our local economic ecosystem and ensuring that wealth creation benefits our communities.
“Strengthening access to alternative financing can unlock economic value across the supply chain from food security to eco-tourism,” he said.He said the MyCIF is a critical national initiative to regulate alternative finance platforms.
“A commitment to de-risking and incentivising private investment in our businesses. It means that when investors invest in Sabah businesses through the ECF and P2P, MyCIF co-invests in these businesses as well.
“Amplifying the impact and making businesses reach their target financing faster. This initiative exemplifies the strong collaboration between the State Government and federal agencies, such as the Securities Commission.
Together, we are building an ecosystem where every Sabahan entrepreneur has the opportunity to thrive,” he said.He urged every business owner, aspiring entrepreneur and every investor in Sabah to learn about these alternative financial avenues.
“They are not just about funding; they are about fostering community, empowering local talent, and driving our collective prosperity. Let us build a resilient and thriving Sabah,” he said.-pr/BNN
