KOTA KINABALU — Sabah’s economy grew by 5.1 per cent last year, its strongest performance in six years, with gross domestic product (GDP) reaching RM88.8 billion, Chief Minister Datuk Seri Panglima Hajiji Noor said.
He said growth was driven by the services sector, which expanded by 4.5 per cent, manufacturing (five per cent) and construction (28.3 per cent).
“Sabah has momentum. Our task now is to turn it into stronger local businesses, higher value industries, better jobs and opportunities for communities across the state,” he said.
Hajiji said this was the focus of the Sabah Maju Jaya (SMJ) 2.0 development roadmap for 2026-2030, which aims to enhance competitiveness, raise productivity and create greater economic value.
He was speaking at Kembara Borneo 2026, Sabah Edition, organised by the Securities Commission Malaysia (SC) at Magellan Sutera Harbour Resort here today. Deputy Chief Minister II and Finance Minister Datuk Seri Panglima Masidi Manjun delivered his speech.
Hajiji said Sabah’s record development allocation ceiling of RM12.02 billion under the 13th Malaysia Plan, covering 933 new projects and 240 extension projects, would further enhance the state’s competitiveness and attractiveness to investors.
He said while SMJ 1.0 focused on economic recovery, stabilisation and restructuring following the COVID-19 pandemic, SMJ 2.0 would build on that foundation to ensure development delivered tangible benefits through better opportunities, stronger livelihoods and improved public services.
“Our aspiration is not only to attract businesses to Sabah. We also want to help Sabah-based companies grow into national, regional and global champions.
“That means nurturing creativity, resilience and entrepreneurship, especially among our young people,” he said.
Hajiji said Sabah had significant economic potential in agriculture, the Blue Economy and downstream industries, underpinned by its natural resources, biodiversity and strategic location.
He said the Blue Economy offered opportunities in modern fisheries, marine biotechnology and nature-based tourism, with the sector potentially generating up to RM3.25 billion in additional annual income under SMJ 2.0.
He added that agriculture needed to move beyond primary production towards modern, high-quality practices and wider adoption of agri-technology to boost productivity and strengthen food security.
However, increasing production alone would not be sufficient, as Sabah also needed to retain more economic value locally through technology transfer, innovation, skills development and greater participation by local businesses in downstream industries.
Hajiji said Sabah’s strategic location at the heart of Borneo, near Brunei Darussalam, Indonesia and the Philippines, positioned the state as a natural gateway for trade, investment and tourism across the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) and the wider ASEAN region.
To capitalise on these opportunities, he said Sabah businesses needed greater access to capital, expertise and investment networks to expand into national, regional and global markets.
He said the state government welcomed the SC’s efforts to broaden financing options for Sabah businesses through equity crowdfunding, peer-to-peer financing, co-investment, private capital and the stock market.
“We are particularly encouraged by initiatives connecting agribusinesses with financing platforms, venture capital and private equity investors.
“We also value the Food Security Scheme under the Malaysia Co-Investment Fund (MyCIF). By co-investing RM1 for every RM2 raised from private investors, it supports businesses in agriculture, agri-technology and the bioeconomy,” he said.
Hajiji said entrepreneurs and companies needed access to suitable financing at different stages of development, whether for downstream processing, agri-technology, aquaculture or maritime logistics.
He also urged local entrepreneurs to strengthen their financial management, corporate governance and business planning to improve their readiness to attract investment.
“Start preparing now for the capital you hope to raise. Keep proper financial records and strengthen your governance and management.
“Be ready to explain how your business earns revenue, how you will use the funds and how you will manage risks. Investors need to understand your business before they can support it,” he said.
Hajiji also invited investors, financiers and capital market intermediaries to explore opportunities in Sabah’s agricultural farms, processing plants, aquaculture sites, factories and tourism businesses.
“Sabah has the resources, strategic location, entrepreneurs and ambition. We must now strengthen the bridge between our businesses and the capital, capabilities and partnerships they need to grow,” he said.
