KOTA KINABALU — Sabah is targeting RM100 billion in gross domestic product (GDP) by 2030 under its Sabah Maju Jaya (SMJ) development agenda, with reliable and affordable energy supply crucial to attracting investment and driving industrial growth.
Chief Minister Datuk Seri Panglima Hajiji Noor said the state had identified priority industries, investment opportunities and supporting infrastructure, with the focus now on implementation.
“We have identified the industries we want to develop, the investments we want to attract and the infrastructure needed to support them. The priority now is to make sure these plans are carried through,” he said.
He said investors needed clear assurances on electricity and gas availability, costs and supply timelines before committing to major industrial projects in Sabah.
“Investors cannot operate their factories based on promises of future energy supply. They need to know what we can actually deliver,” he said.
Hajiji was speaking at the opening of the Sabah Energy Corporation (SEC) Planning Annual Conference (PACE) with EDGE Summit at Magellan Sutera Resort here today. His speech was delivered by Assistant Minister to the Chief Minister Datuk Ceasar Mandela Malakun.
He said natural gas would remain important in meeting Sabah’s growing energy needs while the state expanded its renewable energy sources.
“We have to balance Sabah’s growing energy needs with affordability and environmental sustainability. There are difficult decisions involved, but these are decisions we must make carefully if Sabah is to remain competitive,” he said.
Hajiji said the Commercial Collaboration Agreement signed with PETRONAS in December 2021 had strengthened Sabah’s role in developing its oil and gas industry.
He also cited the Long-Term Gas Supply and Delivery Plan presented to the state government in September, which projected that Sabah’s gas supply could increase from about 700 million standard cubic feet per day to 1,350 million by 2030.
The planned development of gas resources on the east coast would also create opportunities for power generation and industrial growth in the region, he said.
He stressed that the projects must proceed as planned to ensure the state benefited from the expected increase in gas supply and investment opportunities.
Hajiji also commended SEC for its financial performance and efforts to expand into new areas under its Progressive Energy Transformation Agenda (PETA) 2030.
Established in 1981, SEC has developed into one of Sabah’s key energy companies, with an expanded role in gas supply, transportation and distribution, he said.
He urged other state government-linked companies (GLCs) and agencies to strengthen their contributions to Sabah’s economic development through better coordination and cooperation.
“Each state agency and GLC has its own important role to play, but even if every organisation performs well individually, that does not necessarily mean we are delivering well collectively.
“There must be good coordination between them, particularly when their responsibilities come together in supporting a major investment,” he said.
Hajiji said poor coordination and agencies working in silos could delay investment decisions and cause opportunities to go elsewhere.
He called on state agencies and GLCs to share information, resolve issues collectively and improve cooperation to ensure organisational boundaries did not slow investment.
On the summit, he expressed hope that the discussions would lead to practical improvements, new partnerships and more effective collaboration.
