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SABAH has natural resources for renewable energy but needs better coordination, improved infrastructure and strategic partnership between government, businesses and local communities to succeed.

This was the main takeaway at the recent inaugural Sabah Renewable Energy Conference 2025’s Panel Session 4, which centred on the topic titled Collaboration and Partnership: Building a Sustainable Renewable Energy Future. 

Panel moderator, MARC Solutions Sustainability Head Leslie Jong Vui Min opened the discussion by asking panellists about the most important non-monetary contributions that effective collaboration between different stakeholders can bring to Sabah’s renewable energy transition.

“When we talk about transition, under the Paris Agreement, it is clearly stated that we need two important principles to be considered,” said Invest Sabah Chief Executive Officer Dr Firdausi Suffian.

“Number one, the nationally determined contribution. Number two, common but differentiated in terms of contribution,” he said, noting the importance of understanding context and inclusivity in renewable energy transitions.

“Sabah, for the past five years, has been progressing. Look at the progress and Gross Domestic Product growth rate as well as the revenue from the State.

“Ever since 2020, it is the first time that Sabah recorded State revenue around RM6 billion, from RM5 billion, then RM7 billion, now it is expected to have RM8 billion,” he said.

“When we do transition, we have an ideal, this Sustainable Development Goals that sets a perfect objective in 2050. Perfect, that we will make sure there is net zero.

“But look, we should not let perfect be the enemy of good. When we do transition, we sometimes forget about people’s livelihood,” he said, pointing out that inclusivity is often overlooked in energy transition.

On best practices for public-private partnerships in Sabah’s renewable energy sector, Firdausi said inclusive policy development is important.

“When we talk about sustainable and partnership, of course public-private partnership is important. When we contribute to a policy, I think inclusivity is very important.

“It is not just the government configuring the policy, but there must be input from the private sector and the community as well.

“Top-down policy, top-down disintegration and policy bottom-up disassociated. At the end of the day, nobody knows what you are doing,” he said, pointing out the ineffective top-down centred policies.

On investment strategies for Sabah’s renewable energy future, Firdausi said Invest Sabah has undertaken strategies to attract investment in renewable energy projects.

“Our strategies are under the Sabah Maju Jaya Plan. It is always setting the narrative to create Sabah as the guide of economic development and sustainable resilience.

“When you talk about palm oil, we are the biggest producer when it comes to crude palm oil. We hold 10 per cent of world market share. And then after that, we have more than 25 tons of biomass from palm oil,” he said.

He also noted policy innovations like the biomass policy and the 7.5 per cent sales tax on biomass leaving Sabah.

“When we put 7.5 per cent, then the people who are in the real estate cannot simply just sell it. This will entice companies like Sumitomo from Japan and other Japanese and Korean companies who are very interested in looking at biomass.

“The Ocean Thermal Energy Enactment. We were the first state to introduce that Enactment last year. We know the energy is rather new, but you must start somewhere,” he said noting Sabah’s pioneering role in ocean thermal energy.

“Our vision without implementation or execution is just a mere illusion. Let us make it happen,” said Firdausi.

For the record, the Sabah Maju Jaya 1.0: 2021–2025 Development Blueprint outlines a meticulously structured plan to integrate environmental sustainability with economic growth.

This aligns with global frameworks such as the United Nations Sustainable Development Goals (SDGs), the Rio Declaration 1992 and Malaysia’s commitments under the Convention on Biological Diversity.

Among others, the blueprint prioritises green infrastructure, renewable energy, biodiversity conservation and circular economy principles, leaving no pillar of development unaddressed. 

Central to the strategy is the Infrastructure Network and Green Sustainability sector, which mandates environmental safeguards across all projects.

This includes expanding terrestrial protected areas by 100,000 hectares and increasing marine conservation zones by 13 per cent, with a focus on High Conservation Value Environment.

The transboundary Heart of Borneo initiative, a collaboration with Indonesia and Sarawak, reinforces protections for critical rainforest ecosystems.

The Sabah Structure Plan 2033 further emphasises creating a State with healthy residents and preserving natural environments through Priority Conservation Areas spanning land, islands and marine zones. 

Renewable energy infrastructure is a cornerstone, showcased by the 187.5-megawatt Upper Padas Hydroelectric Dam and the 275kV Southern Link Transmission Line, designed to improve clean energy distribution.

Rural electrification efforts have already connected 617 villages, with the Sabah Energy Commission established to oversee the State’s energy transition.

Current energy capacity stands at 1,278 MW from State power stations and 996.26 MW from independent producers, against a 2022 demand of 1,032 MW. 

Water resource management is undergoing notable upgrades, with plans to increase daily treatment capacity from 1,510 million litres (JLH) to 1,940 JLH by 2025 through 84 operational plants.

Projects include rehabilitating aging infrastructure, expanding storage and modernising pipe networks.

Among important focus is reducing Non-Revenue Water (NRW) losses (currently at 52 per cent) via electromagnetic meters, smart metering and leak detection programs. 

Transportation upgrades emphasise low-carbon mobility, with railway improvements between Beaufort, Halogilat and Tenom Lama and proposals for a new line to Kudat.

The Pan-Borneo Highway, developed through Private Finance Initiatives, incorporates eco-design principles to minimise ecological disruption. 

Economically, the blueprint adopts a circular economy model guided by the 5R principles (Reduce, Reuse, Recycle, Recovery, Repair), together with initiatives like food waste management and the Green Local Authority programme to embed sustainability at municipal levels.

The Industrial Building System, a cost-effective construction method, supports affordable housing while reducing waste.

Cross-border partnerships, such as linking Sabah’s Sindumin with Indonesia’s Simanggaris, aim to promote green trade and eco-tourism. 

Digital innovation is prioritised through the creation of a Sabah Digital Authority to advance smart technologies in energy grids, water management and urban planning.

Improved internet connectivity Statewide is expected to enhance efficiency and resource optimisation. 

Challenges include addressing the high NRW rate and balancing conservation with development in ecologically sensitive areas.

However, the plan reinforces opportunities in green job creation, sustainable fisheries and eco-tourism, framed by commitments to preserve biodiversity and align development with the Sabah Environmental Policy 2018–2033. 

With its 2025 deadline approaching, the blueprint’s success rests on rigorous implementation of its interconnected environmental, economic and infrastructural goals, positioning Sabah as a potential model for sustainable development.