Kota Kinabalu: The proposed Indian Consulate in Sabah should be viewed as an administrative platform to facilitate trade and strengthen economic cooperation, rather than as a transfer of control, said Sabah Indian Chamber of Commerce (SICC) President Datuk V. Jothi.
He said it could help reduce business friction and support expanding commercial ties between Sabah and India, provided that the state’s regulatory authority and local employment priorities remain paramount.
“Sabah’s future depends on thoughtful policymaking, balanced judgment and transparent governance.
“Constructive dialogue — not polemic — will ensure that economic decisions are made in the best interests of the state and its people,” Jothi said in a statement, Sunday.
He said the chamber reaffirmed its commitment to promoting responsible economic engagement anchored in accountability, inclusiveness and shared prosperity.
“As a chamber representing business stakeholders within Sabah, we believe such discussions must be guided by facts, clarity and a commitment to Sabah’s long-term economic interests.
“Public concerns regarding employment, sector control and economic monopolisation are valid and deserve serious attention.
“Sabahans are right to ask how any new diplomatic or economic development will affect local industries and job security. These questions reflect responsible civic engagement,” he said.
At the same time, he said it is important to clarify what a Consulate is — and what it is not.
“A Consulate primarily performs administrative and diplomatic functions such as visa processing, citizen services, documentation verification, and facilitating trade and business communication.
“It does not control Malaysian employment laws, grant work permits, issue state contracts, or override Sabah’s regulatory authority.
“All matters relating to labour regulation, business licensing, and procurement remain firmly under the jurisdiction of the Malaysian federal and Sabah state governments,” he said.
He said the economic relationship between Malaysia and India remains substantial and longstanding, with bilateral trade valued at between USD18 billion and USD20 billion annually.
He said Sabah contributes significantly to sectors linked to this relationship, particularly palm oil, agro-based products, logistics and supply chains while India remains one of Malaysia’s largest palm oil markets.
“For Sabah — one of Malaysia’s leading palm oil-producing states — stable access to large markets such as India provides export certainty.
“This added to expanded cooperation in healthcare and pharmaceuticals which could improve supply chain efficiency, particularly benefiting rural communities, while emerging collaboration in renewable energy, digital trade and skills development presents opportunities for higher-value employment,” he said.
However, he said the Chamber stressed that economic opportunities must be accompanied by appropriate safeguards.
The chamber proposed:
- Priority employment for Sabahans in all state-facilitated investments,
- Mandatory skills transfer and workforce training components
- Transparent procurement processes and open tender systems,
- Disclosure of beneficial ownership for participating companies, and
- Periodic public reporting on trade, investment and employment outcomes.
“With these safeguards in place, economic cooperation strengthens Sabah rather than undermines it,” he said.
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