Sabah strives to increase revenue from manufacturing sector to RM60 bln by 2030
Last Update: 29/04/2019
KOTA KINABALU, April 29 (Bernama) -- Sabah needs to increase its revenue from the manufacturing sector to RM60 billion by 2030 to meet the target of boosting its contribution to 35 per cent to the state’s gross domestic product (GDP), Deputy Chief Minister Datuk Wilfred Madius Tangau said.
Her said the manufacturing sector currently contributes 7.3 per cent to the state’s GDP, hence, it has to be further expanded to sustain the industrial and economic growth.
Madius, who is also Sabah Trade and Industry Minister, said the state government had planned and structured various initiatives to ensure that the sector could create double impacts, including diversifying value added in every economic activity, as well as being committed to attracting more potential investors.
"We want to move ahead and join other developed countries, as well as we want our per capita income in GDP to grow. We must increase the contribution of the manufacturing and industrial sector from 7.3 per cent currently to 35 per cent in the next 10 years.
"To achieve the target, the contribution of the manufacturing sector should be increased to RM6 billion annually to ensure that the sector can contribute RM60 billion by 2030," he said at the Department of Statistics’ (DoE) Economic Community Appreciation Programme 2019 here today.
Chief Statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin and Sabah DoE director Norhayati Jantan were present.
Madius said Sabah recorded a stunning economic growth of 8.2 per cent in 2017 compared with 4.7 per cent in the previous year, garnering RM92.7 billion to the state’s GDP.
He said the services sector was the largest contributor to Sabah's GDP in 2017 at 39.9 per cent, followed by the mining and quarrying sector (31.3 per cent), agriculture (18.7 per cent), while the lowest contributor was the manufacturing and industrial sector at only 7.3 per cent.
Among the challenges faced by Sabah in ensuring that the industrial sector expand more rapidly are high port logistics operating costs and low port shipping activities, he added.
He said however, the state government is committed to implementing various proactive approaches in addressing the challenges, including banning timber exports and boosting the development of downstream industries in order to make Sabah an industrialised state that provides more jobs to the people.
At the event, Madius also presented certificate of involvement in manufacturing research to 32 company representatives involved in the studies conducted by the DoE.