Kota Kinabalu: Luyang Assemblyman Samuel Wong said Sabah needs to diversify its economy and develop downstream industries to shield itself from escalating global economic pressures.
“Rising geopolitical tensions, supply chain disruptions and intensifying global price competition now represent a structural shift in the world economy rather than a passing phase, one that could have lasting consequences for Sabah if the state fails to act swiftly,” he said in a statement, Wednesday.
“Instability is becoming the new normal. Countries are protecting their industries, excess supply is entering international markets, and price competition is intensifying across sectors from manufacturing to food products,” he said.
He urged the Sabah Government to capitalise on the State’s natural resource and agricultural strengths by moving up the value chain, rather than continuing to export commodities in raw or minimally processed form.
“Sabah exports large volumes of palm oil, seafood, and agricultural produce, yet much of it is still in raw or minimally processed form. Instead of exporting raw fish, we should be developing seafood processing industries. Instead of exporting crude palm oil, we should be expanding into higher-value downstream products,” he said.
He made similar calls for the State’s timber, oil and gas, and mineral sectors, advocating for engineered wood products, furniture manufacturing, petrochemical-based industries, and value-added mineral processing as avenues to retain greater economic value locally.
“We cannot win by competing on low prices alone. We must win by building value,” he said.
Samuel said accelerating downstream development and agro-based manufacturing would also reduce Sabah’s dependence on imported processed goods, create higher-quality employment and strengthen local small and medium enterprises.
He also raised concern over the state’s reliance on imported food, warning that global price volatility in commodities such as meat and basic foodstuffs directly affects local businesses and consumers whenever supply is disrupted.
“In a time of global price wars, we cannot allow our local economy and businesses to be dictated entirely by international market forces,” he said.
He called for food security to be treated as a priority, including expanded support for local farmers and greater domestic food production capacity.
He cautioned against any delay in the government’s policy response, noting that the current challenges could persist for years.
“This is not the time for complacency. The global challenges we face today may persist for years, and their impact on Sabah will be significant if we are not prepared,” he said.
“We may not know exactly what lies ahead, but we must be ready. Our responsibility is to build a resilient economy, strengthen our industrial base, secure our food systems and protect the future of our people because when difficult times come, and they will, Sabah must be ready, not struggling,” he added.
