Construction, Manufacturing, Service Sectors Powered Sabah's 2025 Growth -- Hajiji

KOTA KINABALU, Oct 14 (Bernama) -- Rapid expansion in the construction, manufacturing and service sectors were the main drivers of Sabah’s growth last year.

The construction sector surged 28.3 per cent, followed by manufacturing and services sectors, which grew 5.0 and 4.5 per cent, respectively.

This powered Sabah’s 5.1 per cent growth, its best in six years, with gross domestic product (GDP) reaching RM88.8 billion, said Chief Minister Datuk Seri Hajiji Noor.

“Sabah saw strong growth momentum. Our responsibility now is to translate this into more competitive local businesses, high-value industries, better job opportunities and greater prospects for communities in the state,” he said.

Deputy Chief Minister II Datuk Seri Masidi Manjun, who is also the Finance Minister, read Hajiji’s speech at the opening ceremony of the Securities Commission Malaysia’s (SC) Kembara Borneo 2026 programme here today.

Hajiji said this focus, as reflected in the Sabah Maju Jaya (SMJ) 2.0 development framework 2026- 2030, emphasises improving competitiveness, productivity and high-value creation after the successful recovery phase of SMJ 1.0.

The state’s investment prospects will continue to be strengthened through the highest development allocation ceiling of RM12.02 billion under the 13th Malaysia Plan (13MP), comprising 933 new projects and 240 ongoing projects.

“Our aspiration is not only to attract businesses to invest here. We also want to help local companies grow into leaders at the national, regional and global levels by fostering creativity, resilience and entrepreneurship among the younger generation,” he said.

On the potential of natural resources, Hajiji said the development of the Blue Economy sector could generate additional revenue of up to RM3.25 billion annually under SMJ 2.0 via modern fisheries, marine biotechnology and nature-based tourism.

In the agricultural sector, the food industry needs to shift towards high-technology practices and downstream processing to retain economic value within the state, he said.

Sabah’s geographical position in the centre of the island of Borneo, near Brunei, Indonesia and the Philippines, also has positioned it as a strategic gateway for regional trade, investment and tourism under BIMP-EAGA and ASEAN.

He, therefore, welcomes SC’s efforts to broaden access to alternative capital market financing for local businesses through equity crowdfunding platforms, peer-to-peer (P2P) financing, private equity and venture capital.

The state government also welcomed the Malaysia Co-Investment Fund’s (MyCIF) Food Security Scheme, which provides RM1 in co-investment for every RM2 invested by private investors to finance the agrotechnology and bioeconomy sectors.

Hajiji urged local entrepreneurs to streamline their accounting records and strengthen corporate governance and risk management plans to instil investor confidence before raising capital.

He also invited financiers and capital market intermediaries to explore high-value investment opportunities in Sabah, including aquaculture projects, downstream processing plants, manufacturing sites and tourism facilities.

“Sabah has the resources, strategic location, entrepreneurs and big aspirations. We therefore need to strengthen the links between local businesses and the capital and strategic partnerships required for continued growth,” he said.

-- BERNAMA