Kuala Lumpur: Tuaran Member of Parliament Datuk Seri Madius Tangau
(pic) has called on the Ministry of Investment, Trade and Industry to detail how the Federal Government plans to achieve a 20 per cent manufacturing contribution to Sabah’s Gross Domestic Product (GDP).
He raised the oral question during Tuesday’s Dewan Rakyat session here, pointing out the need for a more structured and high-impact approach to drive manufacturing sector growth in Sabah.
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In a written response, the Ministry noted that Sabah possesses advantages in natural resources including oil and gas, timber, minerals and palm oil, which can be optimally leveraged through downstream manufacturing development.
The Ministry said that through the New Industrial Master Plan 2030 (NIMP 2030), the Federal Government has outlined strategies to encourage investment in downstream activities based on local natural resources to increase the economic value-add of states, including Sabah.
“Mission Four of NIMP 2030 emphasises economic security and inclusivity, ensuring more equitable participation in the manufacturing sector. Its implementation is not concentrated in specific areas only, but encompasses comprehensive development across existing and new economic clusters,” the Ministry said.
According to the Ministry, the NIMP 2030 implementation also supports projects across 21 identified sectors, including new growth sectors such as electric vehicles , advanced materials, semiconductors, carbon capture, utilisation and storage and renewable energy.
The Federal Government is prepared to conduct ongoing engagement sessions with the State Government to ensure development strategies at the Federal and State levels can be aligned, while leveraging local strengths and capabilities to unlock economic growth potential.
On investment performance, the Ministry reported that Sabah’s manufacturing sector showed encouraging achievements from 2020 to September 2025, with 101 manufacturing projects recorded involving a total investment value of RM36.72 billion.
“In 2025 alone, up to the third quarter, 16 manufacturing projects were approved with an investment value of RM7.54 billion, creating 1,728 job opportunities,” the Ministry said.
According to detailed 2025 data, manufacturing activities in Sabah were driven by heavy industry, with the basic metal products sub-sector recording the highest investment of RM6.59 billion, followed by transport equipment at RM586.3 million and chemicals and chemical products at RM140.4 million.
Sabah continues to attract foreign investors, particularly from East Asia and Asean. For the 2020 to 2024 period, China emerged as the largest investor with RM8.5 billion, followed by South Korea with RM4.37 billion.
The momentum continued in 2025, when Singapore became the main investor, committing RM6.59 billion.
To support manufacturing sector growth, the Federal Government is also focusing on modern infrastructure development, including upgrading roads, electricity and clean water supply in Sabah with a development allocation totalling RM6.9 billion in 2025.
Major projects include the upgrade of Sepanggar Bay Container Port, expected to be completed in 2027, which will increase annual capacity from 500,000 TEUs to 1.25 million TEUs and strengthen industrial logistics efficiency.
The Government is also driving quality and strategic investment by targeting the oil and gas sector, green products, renewable energy and the blue economy, including high-tech downstream development at the Palm Oil Industrial Cluster in Lahad Datu.
On incentives, the New Investment Incentive Framework, to be fully implemented in the first quarter of 2026, is expected to be a key catalyst, with incentives assessed based on actual outcomes such as quality job creation, technology transfer and local supply chain development.
“Success in increasing the manufacturing sector’s contribution to Sabah’s GDP depends on close cooperation between the Federal Government and State Government, including efforts to develop local human capital through collaboration between industry and higher education institutions.
“This comprehensive approach aims to transform Sabah into a competitive downstream manufacturing and renewable energy hub, thereby contributing significantly to State and national economic growth,” the Ministry said.
