Wed, 1 Apr 2026
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Hajiji’s economic leadership transforming Sabah
Published on: Sunday, October 12, 2025
Published on: Sun, Oct 12, 2025
By: Datuk John Lo
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Hajiji’s economic leadership transforming Sabah
ALL leaders should prove their past economic performance and ability to produce a sensible economic plan to voters in Sabah.

In a functioning democracy, all political leaders/parties which aspire to form the next government, should present the following to gain votes. 

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[1] Their economic performance track records for Sabah, inclusive of policies and success of implementations if they have been in government before.

[2] The track records of the individual most senior leaders when they were in government.

[3] For the opposition, a comparison of their track records against outgoing government.

[4] Lay out their economic plans to give Sabahans a better future.

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   Sabah leaders should embrace economics in their campaigns.

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Sabah has suffered greatly in the last 4o years cos our leaders lack focus on economic issues. It had been a lot of low-level politics, self-interest, slandering and wayang kulit, hardly any in-depth focus on economic issues.

Result? Accumulations of economic problems [especially infrastructures] for 40 years. These won’t be resolved unless our leaders seek solutions with sound economic policies and good governance.

So far, I don’t see much attention on economic issues in this campaign. 

What are other leaders’ economic performance in comparison with Hajiji’s as CM since 2020?

This is normal democratic practice to give such comparisons to promote economic debates. 

[1] Hajiji’s major economic achievements can be largely attributed to the implementation of the state’s development blueprint, the Hala Tuju Sabah Maju Jaya (SMJ) Development Plan 2021-2025.

[2] These achievements focus on strengthening state finances, attracting investments, and developing key economic sectors.

[3] Fiscal & Financial discipline and prudence:

Discipline and prudence are crucial here.

[i] Record State Revenue: Sabah’s state revenue has seen a significant increase, rising from approximately RM3.59 billion in 2020 to record collections approaching RM8.6 billion in 2024, 160% increase. 

It may reach RM9 billion in 2025.

[ii] Increased State Reserves: The state’s reserves have recorded highest of RM8.6 billion.

[4] Greater Oil & Gas Participation and jobs for Sabahans: 

[i] A landmark Commercial Collaboration Agreement (CCA) with Petronas was secured, giving Sabahan much greater participation in the oil and gas sector, including acquiring equity stakes in projects like the Samarang oil and gas field, Samur, and a major floating LNG project (PFLNG 3) in Sipitang.

[ii] Participation in oil and gas industry by Sabahan companies have increased more than double. 

[iii] Direct employment for Sabahans has increased by more than 1,000 in 2024 alone.

Hajiji has imposed 80% job content for Sabahans.

[iv] There is a serious shortage of skilled Sabahans with relevant qualifications in the oil and gas industry.

[5] Record Investments have flowed into Sabah.

Since 2021, Sabah has secured a substantial amount in approved foreign and domestic investments, with figures around RM35.38 billion (as of mid-2025) or RM17.41 billion in approved manufacturing investments (since Sept 2020). 

New investment proposals are also significant, totalling about RM42.3 billion between 2022 and 2024.

Very significantly, Sabah has become 3rd top investment destination after Selangor and KL Better than Sarawak.

[6] Economic Recovery and Growth: 

The state’s economy recovered from negative growth experienced in 2020 due to the COVID-19 pandemic. 

Sabah’s Gross Domestic Product [GDP] has shown an upward trend, rising from a low of RM77.5 billion in 2020 to RM83.2 billion in 2023. 2024 rose to RM84.3 billion.

[7] SMJ Development Plan- The SMJ blueprint prioritizes three main economic thrusts:

[i] Agriculture: 

Maximizing potential for growth and increasing production.

[ii] Manufacturing industry: 

Attracting investments, boosting industrial output, and developing new industrial parks as KKIP and SOGIP have been fully taken up by investors.

[iii] Tourism: 

Leveraging natural and cultural assets for economic benefit. Also, development of MICE to become the new major high value tourism sector.

[8] Industrial and Energy Focus:

[i] New Industrial Parks: 

Approval for new industrial parks outside KK, in Kota Belud, Beaufort/kimanis, and Kudat (including a Blue Economy Industrial Park) and POIC FZ in Lahad Datu.

[9] Energy and Water Security: 

Sabah Energy Roadmap and Master Plan and the initiation of key infrastructure projects like the Ulu Padas Hydroelectric Dam and urgent allocations to address water shortages. Power problems will be resolved by 2030.

[10] Blue Economy: 

Promotion of Hajiji’s major initiative, “Blue Economy”, which will generate an estimated annual output of marine products valued at RM3.25 billion and exploration of major opportunities like Ocean Thermal Energy Conversion power plants.

[11] Employment creation.

[i] Total Job Placements: 

As of late September 2024, the state recorded 7,448 job placements for Sabahans.

[ii] Tourism Sector Employment since full recovery from COVID.

Now that tourism has fully recovered, over 380,000 are being employed. MICE will generate more and higher value employments for Sabahans. 

[iii] Jobs from Investments: 

Large approved investment projects have and will generate substantial job numbers. Investment between 2022 and 2024 will create nearly 33,000 additional jobs for Sabahans.

[iv] Reduction in Unemployment Rate: 

Finally, Sabah’s years of stubborn unemployment has begun to go down.

Down from 8.2% in 2021 to 7.5% in 2023. As Sabah’s economy continues to grow and expand, unemployment will go further down.

[12] Some GLCs have been and are being turned around with the appointments of chairmen, board of directors and senior management of good standing.

Examples: SMJ Energy, SDB, SEC, Sabah Credit, POIC, KKIP, SOGDC.

       Hajiji’s success in re-balancing Sabah/Federal relationship.

The Sabah/Federal relationship since MA63 has been lopsided against Sabah. Hajiji has realigned this relationship to a more even keel position. 

Not perfect yet, but he is the 1st CM to have regained some Sabah’s rights, most important of which is in oil and gas, board representations in Petronas [this is big!] and Income Tax Board.

Hajiji has regained the use of oil and gas for Sabah to build our own industry which is now booming. He has got back Sabah’s right on power generation and fishing rights. Irons in the fire are [i] 40% share of revenue. [ii] TSA 2012. [iii] increase in number of Parliamentary. seats.

“Vote with your head, not your heart.” Vote for Sabah’s economic future. Vote for strong economic leadership. Vote for a strong Sabah Government.

“Vote with your heart” means voting by emotion without proper assessment of the candidates or parties. Sabah has suffered 40 years of stunted economic growth because Sabahans have voted with our hearts.

“Vote with your head” or “The Rational Approach” involves a cold assessment of candidates and/or parties, their policies, plans for the economy, their track records and competence and long-term consequences.

Most important for Sabahans is to vote in leaders who can:

[1] expand Sabah’s economy in the right direction.

[2] manage Sabah’s growing reserves in the most prudent way.

[3] continue to instil confidence for more investors to come to Sabah.

[4] create high value jobs for Sabahans.

[5] create more investment/business opportunities for Sabahans.

[6] revamp and strengthen the administrative system.

[7] continue law reform to update many seriously out of date laws in Sabah.

[8] strengthen Sabah’s private sector.

[9] command respect as equals with federal leaders to regain MA63 rights.

Remember, “you get the government that you vote for” or “Voters get the government they deserve.”

Sabah must have creditable economic leaders to produce a strong government.

Sabahans will suffer if the 2025 election produces a weak Sabah government. 

A weak government cannot command respect and will produce a badly managed economy. Don’t let last 40 years of history repeat itself. 

It is gratifying that all Sabah parties are for Sabahans to take charge with outside parties, like PH, taking secondary roles so far.

Only a strong Sabah centric government with creditable leaders can manage and expand the economy for Sabahans.

The 2025 election must produce a strong government with Sabahan leaders firmly in the command post. 

A strong, united government led by true Sabahan leaders is the only way to regain MA63 rights and achieve economic progress.

The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express. If you have something to share, write to us at: Forum@dailyexpress.com.my

 
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