Kota Kinabalu: The continued inflow of investors into Sabah remains a key catalyst for the growth of the State’s industrial sector, generating high-skilled employment opportunities and strengthening the local industrial supply chain.
Universiti Malaysia Sabah (UMS) Vice-Chancellor Professor Datuk Dr Kasim Mansor said as of the second quarter of 2025, Sabah had successfully attracted investments totalling RM11.368 billion, comprising both domestic and foreign investments across the manufacturing, services and primary sectors.
“Of this total, the manufacturing sector recorded the highest investment at RM7.472 billion, followed by the services sector with RM3.139 billion, while the primary sector, including industry, tourism and agriculture, contributed RM757 million.
“This achievement places Sabah as the fifth highest investment recipient in Malaysia, surpassing the total investment value of RM6.458 billion recorded in 2024,” he said in a statement, Monday.
Dr Kasim, who is also an economic analyst, said the inflow of large-scale investments has had a direct impact on the development of supporting industries, including logistics services, raw material supply and the strengthening of Sabah’s industrial ecosystem.
He said among the key investments driving industrial growth was the Phase One investment by Singapore-based Esteel Enterprise Sabah Sdn Bhd, valued at RM6.592 billion, for the construction of a green steel manufacturing plant at the Sipitang Oil and Gas Industrial Park.
“This high-impact industrial development not only enhances the State’s economic competitiveness, but also contributes to more sustainable economic growth through the creation of quality jobs and increased local value-added activities.
“The entry of strategic investors places Sabah on a stronger footing as an industrial investment destination, in line with long-term development needs and the State’s economic growth aspirations,” he said.
Meanwhile, Dr Kasim said the Sabah Budget 2026 has the potential to accelerate the State’s economic development.
He said the budget focuses on socio-economic balance, strengthening human capital, improving basic infrastructure and enhancing the efficiency of the Government’s service delivery system.
“The Government has proposed supply expenditure amounting to RM6.402 billion with estimated revenue of RM6.430 billion, resulting in a budget surplus of RM28 million.
“The budget prioritises programmes and activities oriented towards long-term development to stimulate economic growth, create employment opportunities and improve public facilities.
“This budget is capable of addressing the challenges of 2026 in tandem with the strengthening of fiscal fundamentals and increased investment, driven by the recovery of the tourism sector, growth in trade activities and higher employment,” he added.
