Kota Kinabalu: The State Government needs to develop a Northern Borneo Regional Digital Highway as a strategic backbone to ensure Sabah does not fall behind in artificial intelligence (AI), innovation, and the digital economy.
Pantai Manis Assemblyman Datuk Pengiran Saifuddin Pengiran Tahir Petra, who proposed this, said adopting such a move would help Sabah remain competitive in AI and digital innovation and the economy.
He noted that the State Government’s aspirations regarding an AI-driven future and the digital economy could only be realised if Sabah possesses strong, large-scale, and regionally competitive digital infrastructure.
He pointed out that digitalisation can no longer be viewed merely as the provision of online government systems, but must instead be transformed into the foundation of the region’s future economic development.
“If in the past, physical highways opened up rural areas and boosted the economy, then in today’s AI era, digital highways determine a state’s competitiveness. They form the backbone for the development of data centres, platform economies, digital education, and modern governance.
“While the RM32.31 million allocation to the State Computer Services Department for 2026 is much appreciated, Sabah must go further by developing a regional digital network, including the Northern Borneo Regional Digital Highway, capable of connecting markets across Borneo and Southeast Asia,” he said.
Elaborating, he noted that Sabah has a unique geographical advantage, being strategically located in Northern Borneo near the Sulu Sea and Celebes Sea, and close to the southern Philippines, Palawan, Kalimantan, and the BIMP-EAGA economic corridor.
“From a market perspective, areas like Palawan, Puerto Princesa, and the Bangsamoro region (BARMM) have a total population of about 6.89 million residents, while Sabah’s east and southeast coast — including Sandakan, Lahad Datu, Semporna, and Tawau — also has a large population of about 1.5 million people.
This means Sabah has the potential to sit at the centre of a regional digital market exceeding four million people if this network is properly planned. Unfortunately, to date, this strategic potential has not been fully utilised in the digital space,” he said.
Saifuddin stressed that Sabah risks being sidelined if it fails to act promptly, especially with rapid digital infrastructure developments in neighbouring countries, such as international submarine cable projects.
“Neighbouring countries are moving quickly. The Bifrost submarine cable system, which began operations in October 2025, connects Singapore to the United States via Indonesia, while SEA-US links Manado, Davao, Guam, and Los Angeles.
“This means that digital corridors around the Celebes Sea and the Sulu Sea are developing without Sabah playing a leading role. Hence, if we do not act now, Sabah will only become a consumer of technology rather than an owner of strategic infrastructure.
That is why I am urging the State Government to consider the Northern Borneo Regional Digital Highway as a State catalytic project encompassing not only technology, but also digital sovereignty, data security, and Sabah’s economic future. The question is not whether Sabah is capable, but whether we are ready to lead,” he said.
In a separate development, Saifuddin also raised several local development issues in Papar that require serious attention and comprehensive action.
On water supply capacity problems, he highlighted that Papar is now facing raw water quality issues due to high chloride content, or saltwater intrusion, which affects water treatment plant operations.
“The Sabah Water Department’s emergency notice on April 25, following the temporary closure of the EWSS Papar Water Treatment Plant due to elevated chloride levels in the river water, stated that the disruption would continue until chloride levels return to normal.
“This shows that the issue of saltwater intrusion is not a past problem that has already been resolved, but is still occurring and continues to directly affect the people of Papar.
“Reports also indicate that chloride levels can exceed the standard threshold of 120 milligrams per litre, and at times readings have reached more than 2,000 milligrams per litre, forcing the treatment plant to temporarily suspend operations.
“That is why the alternative water intake project in Kg Kabang is so important. When the Limbahau water intake is affected, raw water from Kg Kabang can be used to ensure that treatment plant operations are not disrupted,” he said.
Hence, Saifuddin proposed a three-layer solution for the State government to address the long-standing water issue in Papar.
“First, complete the Kogopon II Water Treatment Plant (LRA Kogopon II) according to schedule as a solution to treated water capacity constraints, which is expected to complete in August this year.
“Second, complete the alternative intake at Kg Kabang on schedule (expected to complete this July) as a solution for raw water supply when the Limbahau intake is affected by saltwater intrusion.
“Third, the State Government should initiate a technical study on desalination technology at a strategic scale as a supporting system, specifically to address drought periods, tidal phenomena, and situations where chloride levels rise sharply,” he said.
On fisheries development, he highlighted concerns among small-scale fishermen in Kuala Papar, Pantai Manis, and surrounding areas, who are facing pressure from rising operational costs and encroachment by commercial vessels into traditional fishing zones.
“When large vessels enter areas used by small fishermen, the impact is significant — reducing catches, damaging equipment, disrupting fishing grounds, and putting further strain on marine resources.
“It is understood that the Sabah Fisheries Department has enforcement programmes at sea and on land under the Fisheries Act 1985, has installed the Intruder Intervention System Vessel Monitoring (iiVMS) on fishing vessels such as trawlers and purse seiners (jerut), enabling 24-hour monitoring via web, computers, tablets, and smartphones.
“If monitoring systems are already in place, enforcement action must be faster. Small-scale fishermen need to see that their complaints are taken seriously and must be confident that their traditional fishing areas are protected.
“Therefore, I propose strengthening the use of iiVMS data for follow-up action, increasing patrols in Papar waters, simplifying complaint channels, and establishing or strengthening the Papar Sea Community Squad with the involvement of fishing communities,” he said.
Saifuddin also emphasised the need to upgrade fishermen’s facilities in Papar — such as jetties, fish landing points, equipment storage, ice facilities, and seafood sales spaces — in phases to enhance the coastal economic value chain.
On land infrastructure, Saifuddin proposed the construction of new alternative routes, including additional bridges, to ease traffic congestion in areas such as Benoni, Plaza 22, Sungai Padang, and Kg Sapat.
He noted that traffic congestion in Papar is worsening due to population and vehicle growth, while the existing road network remains insufficient.
“These routes are important as alternative access points so that traffic is not concentrated solely on existing bridges and roads. I urge the State Government and relevant agencies to expedite studies and implementation of new alternative roads connecting Sungai Padang, the Plaza 22 area, and Kg Sapat, including the need for a new Papar bridge,” he said.
To boost the local economy, Saifuddin also proposed redeveloping Papar Old Town into a heritage, food, and community tourism hub under the “Papar Old Town Heritage Street” concept.
He said this approach could create opportunities for small entrepreneurs, homestay operators, fishermen, and youth to generate income through community-based tourism.
“In addition, I propose establishing a Papar Youth Talent Pool to match local manpower with job opportunities and skills training relevant to current industry needs, including the digital sector.
“Youths in Papar should not merely be technology users. They must be given space to become digital workers, entrepreneurs, and value creators in the new economy, as the people want not just project announcements, but effective implementation so that the benefits are truly felt,” Saifuddin said.
