KOTA KINABALU: The continued influx of domestic and foreign investors into Sabah is emerging as a key catalyst for the state’s industrial growth, generating high-skilled job opportunities while strengthening the local industrial supply chain.
Universiti Malaysia Sabah (UMS) Vice-Chancellor, Professor Datuk Dr Kasim Hj Mansor, said that as of the second quarter of 2025, Sabah had successfully attracted RM11.368 billion in investments across the Manufacturing, Services and Primary sectors.
Of the total, the Manufacturing sector recorded the highest investment value at RM7.472 billion, followed by the Services sector at RM3.139 billion, while the primary sector—including industry, tourism and agriculture—contributed RM757 million.
“This achievement places Sabah as the fifth-highest investment recipient in Malaysia, surpassing the total investment recorded in 2024 of RM6.458 billion,” he said in a statement issued here on Monday.
Dr Kasim, who is also an economic analyst, noted that the inflow of large-scale investments has had a direct impact on the development of supporting industries such as logistics services, raw material supply, and the overall strengthening of Sabah’s industrial ecosystem.
Among the key investments driving industrial growth is the first-phase investment by Esteel Enterprise Sabah Sdn. Bhd. from Singapore, valued at RM6.592 billion, for the construction of a green steel manufacturing plant at the Sipitang Oil and Gas Industrial Park.
“This high-impact industrial development not only enhances the state’s economic competitiveness, but also contributes to more sustainable economic growth through the creation of quality employment opportunities and increased local value-added activities,” he said.
According to Dr Kasim, the entry of strategic investors continues to place Sabah on a firmer footing as an industrial investment destination, in line with the state’s long-term development needs and economic growth aspirations.
Meanwhile, he described the Sabah Budget 2026 as a key driver capable of accelerating the state’s economic development.
He said the budget focuses on socio-economic balance, human capital development, improvements to basic infrastructure, and strengthening the efficiency of government service delivery systems.
“The state government has proposed a Supply Expenditure estimate of RM6.402 billion with projected revenue of RM6.430 billion, resulting in a budget surplus of RM28 million.
“The budget prioritises long-term development-oriented programmes and activities to stimulate economic growth, create employment opportunities, and improve public facilities,” he added.
Dr Kasim also said the budget is well-positioned to address the challenges of 2026, supported by stronger fiscal fundamentals and increased investment, driven by the recovery of the tourism sector, growth in trade activities, and rising employment levels in Sabah.
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