Kota Kinabalu: Universiti Malaysia Sabah (UMS) Vice-Chancellor Prof Datuk Dr Kasim Mansor said Sabah emerged as the fifth-highest investment recipient in Malaysia.
He said the State recorded total investments reaching RM11.368 billion in the second quarter of last year – surpassing the full-year 2024 figure of RM6.458 billion.
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The influx of domestic and foreign capital across manufacturing, services and primary sectors is acting as a key catalyst for industrial growth, creating high-skilled jobs and strengthening local supply chains.
Kasim, who is also an economic analyst, said in a statement that the manufacturing sector recorded the highest share at RM7.472 billion.
The services sector followed with RM3.139 billion, while the primary sector – covering industrial activities, tourism and agriculture – contributed RM757 million.
He highlighted that large-scale investments have directly boosted supporting industries such as logistics services and raw material supply, strengthening Sabah’s overall industrial ecosystem.
A major driver is the RM6.592 billion Phase I investment by Singapore-based Esteel Enterprise Sabah Sdn Bhd for a green steel manufacturing plant at the Sipitang Oil and Gas Industrial Park, he added.
“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,” Kasim said.
“The entry of strategic investors places Sabah on a firmer footing as a destination for industrial investment, in line with long-term development needs and the state’s economic growth aspirations.”
Kasim also noted that Sabah Budget 2026 has the potential to further accelerate economic development.
The budget proposes supply expenditure of RM6.402 billion against estimated revenue of RM6.430 billion, resulting in a surplus of RM28 million.
“The focus is on long-term development-oriented programmes and activities aimed at generating economic growth, creating employment opportunities and improving public amenities,” he added.
“This budget is well-positioned to address the challenges of 2026, supported by stronger fiscal fundamentals and increased investment, driven by the recovery of the tourism sector, growth in trade activities and higher employment levels.”
