Sabah Open To Credible Investments, Says Hajiji

KOTA KINABALU — The Sabah Government remains open to credible investments and constructive partnerships that support the state’s development priorities, particularly in emerging sectors such as artificial intelligence (AI) and digital technology.

Chief Minister Datuk Seri Panglima Hajiji Noor said, however, that all investment proposals must undergo proper scrutiny and comply with the state’s policies and development priorities.

“Openness, however, must always go together with due diligence and responsible decision-making,” he said at the signing ceremony of memoranda of understanding (MoUs) for the proposed establishment of Sabah’s first Artificial Intelligence Data Centre (AIDC) at the Sheraton Hotel here tonight.

His speech was delivered by Deputy Chief Minister II and Finance Minister Datuk Seri Panglima Masidi Manjun.

Congratulating North AIDC Sdn Bhd on securing MoUs with several global partners, Hajiji described the collaboration as an encouraging first step towards exploring investment opportunities in the sector.

“The real measure of progress, however, will be what follows the signing: careful planning, proper assessment and meaningful results for Sabah,” he said.

He stressed that the proposed investment remained subject to strict evaluation by the relevant government agencies, including assessments of its technical and financial viability and compliance with all applicable requirements.

“An MoU is a statement of intention; it is not, by itself, a government approval. No proposal, however promising, can be exempted from proper scrutiny,” he said.

Hajiji said the assessment of the proposed data centre must also cover electricity demand and supply, water availability, cooling technology, environmental safeguards, land use and connectivity.

He said project proponents would need to work closely with the relevant authorities and utility providers to ensure the development would not compromise the reliability of essential services for Sabahans.

“We welcome new opportunities, but not at the expense of reliable essential services for Sabahans,” he said.

On the potential economic benefits, Hajiji said the construction phase could create opportunities for local companies in engineering, civil works, telecommunications, logistics and support services.

However, he noted that modern data centres generally required relatively small but highly skilled workforces once operational, making local procurement, specialised training, technology transfer and opportunities for Sabah-based companies particularly important.

He urged the proponents to incorporate local participation into their plans from the outset, including opportunities for Sabahan contractors, partnerships with universities and technical institutions, apprenticeships for young people and pathways for local companies to develop new capabilities.

“We should judge the value of any proposal by the benefits it can demonstrate and sustain, not by the scale of an announcement,” he said.

Hajiji said artificial intelligence and cloud computing were transforming business operations, service delivery and the way people worked, adding that Sabah should position itself to participate in the growing digital economy.

“Sabah has every reason to explore opportunities in this growing field. We want our young people, local businesses and institutions to have a place in the digital economy, rather than merely observe its progress elsewhere,” he said.

Nevertheless, he said the state’s digital ambitions must be balanced with the basic infrastructure needs of its people, noting that some households and businesses in Sabah were still awaiting more reliable electricity, clean water and better connectivity.

“These are important priorities in their own right. They are also the foundations upon which a competitive digital economy must be built,” he said.

He said the proposed data centre highlighted the close relationship between basic infrastructure and the development of the digital economy, as such facilities depended on stable electricity, reliable connectivity and well-managed cooling and water systems.

“These requirements must be considered alongside those of our homes, public services and existing industries.

“A modern digital economy should strengthen Sabah’s infrastructure, not place unnecessary pressure upon it,” he said.

Hajiji said Sabah could also learn from the experiences of other states, including Johor, where growing interest in data centre investments had created opportunities while raising concerns over utilities, environmental management and the impact on surrounding communities.

“Sabah has the advantage of being able to anticipate these considerations early and plan in a way that suits our own circumstances,” he said.

He wished North AIDC managing director Datuk Chua Soon Ping, the company’s team and all participating partners success in undertaking the necessary assessments and proceeding with the next steps.

“May tonight’s signing lead to practical cooperation and lasting benefits for Sabah and its people,” he said.