KOTA KINABALU, 18 DECEMBER 2025 – The Sabah Economic Development Corporation (SEDCO) proudly announces a historic achievement, delivering the highest combined dividend and loan repayment to the Sabah State Government in over 15 years.
For 2025, SEDCO has successfully returned RM10 million to the State, comprising RM2 million in dividends and RM8 million in loan repayments. This milestone reflects a strong turnaround and improved financial performances for the Group.
This performance achievement comes just 10 months after the appointment of industry professional, Datuk Ar. James Wong Kein Peng, who assumed the role of Group General Manager in March 2025. His appointment reflects the Chief Minister’s strategy to empower Sabah Government-linked companies (GLCs) with professional, industry-driven leadership—an approach already producing positive economic results.
Datuk James expressed deep appreciation to the entire organisation for their commitment and contribution:
“It is the collective group effort of each and every one of our hardworking CEOs, GMs, management, and staff who have made this great progress for SEDCO. This is a great win for us all! I would like to take this opportunity to thank them for the hard work this year, and I look forward to even greater achievements we will be making in the years to come.”
He further reaffirmed SEDCO’s mission, outlining the organisation’s responsibility to help drive Economic impact of Sabah:
“SEDCO, as the name implies, is the Sabah Economic Development Corporation of the State. One of our key responsibilities is to generate strong economic value and significant dividend returns back to the State so that the Government can reinvest into infrastructure, people development, and long-term nation building.
For 2026, we are setting a bold target as a Group to double our dividend and loan repayment back to the State to RM20 million. This reflects our confidence in the projects being developed, our performance of our Subsidiaries, the transformation initiatives underway, and the growing strength of our leadership and operational systems.
We must all work together — every CEO, GM, department and division — to deliver this mission responsibly, transparently, and with commitment to excellence for the people of Sabah.”
Major 2025 Achievements and 2026 Growth Pipeline
SEDCO’s strong financial delivery has been supported by major corporate reforms and strategic initiatives that are reshaping the Group into a modern, professionally governed organisation with long-term economic impact:
1. Strengthened Corporate Governance & Procurement Transparency
SEDCO has established a dedicated Project Management & Procurement Unit, ensuring transparent contract and tender management processes that comply with Ministry of Finance procurement guidelines. This major reform reinforces integrity, accountability, and professionalism across all project approval stages.
2. Billion-Ringgit Development Projects in the Pipeline
SEDCO is in the process of developing several large-scale development proposals that will unlock billions of ringgit in economic value for Sabah in the coming years, including Kudat Blue Economy Industrial Park, Sepanggar Logistics Hub, Sabah International Trade & Exhibition Centre, Hotel Redevelopment Initiatives, New Township Projects, Tuaran Coastal Tourism Masterplan, SEDCO Tower Redevelopment, SEDCO Medical Centre, And multiple other commercial, industrial, and tourism development projects to name a few. But are all still subject to the relevant Board, Ministry, and Cabinet approvals.
These development blueprints are expected to generate thousands of jobs, strengthen Sabah’s investment competitiveness, and support a high-value economic ecosystem for many years to come!
3. Holistic Bumiputra Entrepreneurship Development Program
A comprehensive entrepreneurship programme has been established to empower local Sabahan Bumiputra entrepreneurs to scale from early-stage ventures into larger profitable, and sustainable companies.
The programme includes coaching and mentorship input from the private sector, advisory support, financing access, bumiputra entrepreneur community networking initiatives, and strategic guidance tailored to local business needs.
Including participation in projects like Agrotech and Vertical farming initiatives to bring our local young entrepreneurs back into the agriculture sector and address our Food Security concerns.
‘We should be tracking exactly how many Bumiputra Entrepreneurs have we groomed from RM100k Revenue per year, to RM5M Revenue per year – giving us a KPI on how to improve ourselves and unlock greater economic potential for our Bumiputra Entrepreneurs in the years to come’.
4. New KPI Performance Accountability System
SEDCO has developed a performance-driven corporate culture introducing clear KPI structures across all subsidiaries and departments. The framework ensures: accountability through measurable targets, structured reporting and tracking systems. A Performance Incentive Reward System is also being developed to reward those who are going above and beyond and delivering huge value for the company. The goal is to embed operational excellence and value creation into SEDCO’s organisational DNA.
5. Grooming of Young Leaders, Succession Planning, and Talent Development:
Under the leadership of SEDCOs new GGM, a new initiative called the ‘Innovation Taskforce’ (akin to that in Jaycorp) has been created to bring greater industry exposure, mentorship training, and leadership development for the various young staff within the SEDCO Group.
This is also an avenue to give the young talents an opportunity to express that innovative and new ideas freely, be allowed to make mistakes and learn along the way, and to have the correct mentorship input in place. ‘As many of our older staff will be retiring within the next 3-5-8 years, it is vital that we have a systematic leadership program to equip our young people to be able to lead with competency and to have a leadership succession strategy in place for SEDCO to continue to sustainably deliver strong performances in the years to come’.
5. Turnaround of Legacy Projects
SEDCO is actively working alongside many of its subsidiaries in resolving longstanding legacy issues. Positive breakthroughs include the transformational progress on Darvel Bay Plaza Mall in Lahad Datu in collaboration with SUDC. Where the mall is starting to see a fresh new life with escalators working, air-conditioning performing, renovations taking place, and life and businesses starting to flourish within the mall!
Another positive Legacy Project includes the final completion delivery in sight for the long-delayed KKIP SME Park - consisting of 44 SME Industrial lots in KKIP, now targeted for final completion with OC by mid-2026. These efforts unlock dormant value and restore confidence in previously stalled development assets.
Looking Forward: A Positive and Clear Path for SEDCOs future
With robust corporate reforms, strengthened financial discipline, and strong leadership culture, the SEDCO Group is entering 2026 with renewed growth momentum and confidence.
SEDCO acknowledges the visionary leadership of our YAB Chief Minister, the vital support of the Government in its success, and reaffirms its full mobilization and support of the SEDCO Group to achieve all the objectives that the State Government sets before us!
Comments
Post a Comment