Investment Opportunities
Sabah, a region ripe with investment opportunities spanning key sectors: Manufacturing, Tourism, Human Capital, Agriculture, and Infrastructure & Utilities.
Explore the diverse potential of this dynamic region, ripe for investment and growth
Positioned at the forefront of manufacturing, Sabah’s advantageous location and skilled workforce foster an environment conducive to operational excellence. Meanwhile, the region’s captivating natural beauty serves as a cornerstone for the burgeoning tourism sector, promising lucrative returns for astute investors. Through a steadfast commitment to human capital development, Sabah cultivates a workforce renowned for its innovation and adaptability. Leveraging the richness of its fertile lands, Sabah’s agricultural sector presents a wealth of opportunities spanning palm oil, rubber, and beyond. Additionally, strategic investments in infrastructure and utilities underscore Sabah’s commitment to seamless connectivity and sustainable progress.
Join us in Sabah and embark on a journey towards corporate success within these pivotal clusters.
The Core Clusters of Sabah:
Previous
Next
Ready to invest? Talk to our team today.
We provide assistance to facilitate your business.
Core Clusters
Sabah, a region ripe with investment opportunities spanning five key sectors: Manufacturing, Tourism, Human Capital, Agriculture, and Infrastructure & Utilities.
Manufacturing
Sabah’s economy traditionally relies on oil, gas, timber, and agriculture. However, recent improvements in infrastructure are driving economic diversification into heavy industries.
11.5 bil
Investment Value in 2022
Human Capital
The advancement of Malaysia toward a knowledge-based and higher-value economy relies on the development of a highly skilled workforce.
HIGHEST LABOUR FORCE
Highest labour force participation in Malaysia
3.4 Mil
2nd largest population in Malaysia
Tourism
Sabah has positioned itself as a sought-after destination for culture, adventure, and nature, aiming to capture a larger share of the global meetings, incentives, conferences, and exhibitions market.
UNESCO TRIPLE CROWN
Alongside Jeju Island & Shennongjia
4,095 meters
Home to the the highest peak in Southeast Asia, Mount Kinabalu
Diving heaven
Sipadan Island is listed as one of the best dive sites in the world
2ND BUSIEST AIRPORT
KKIA being the main gateway to Sabah
Agriculture
The strategy for the agriculture sector revolves around leveraging cutting-edge technology to elevate the income of traditional farmers, breeders, and fishermen.
SAIP 2.0
Sabah Agro Industrial Precinct 2.0
HALAL HUB STATUS
Meat Downstream Processing Industry
Foot & Mouth Disease Free
Certified by WHO
Infrastructure & Utilities
The Ministry of Works Sabah and the Federal Works Ministry oversee infrastructure development, including Roads (Highways, Industrial, Agricultural), Water (Dams, Water Treatment, NRW Management), Railways, Transport
Services (Sky Trains, Tram Services), Sewerage Construction, Marine Ports services, and Licensing.
5 Airports
Sabah has a network of five airports
8 Ports
Sabah has a total of 8 ports
Pan Borneo Highway
5,324-kilometre Pan Borneo Highway
7 Keys Economic Growth Area (KEGA)
There are 7 Key economic growth area focusing on Sabah’s strengths:
One SDC initiative to raise Agri productivity through technology & innovation. A wide
range of food crops are produced in Sabah. Agrifood productivity in Sabah is low relative
to Peninsular Malaysia across all food crops. Livestock population & output is low
relative to Peninsular Malaysia across most types of livestock. Sabah’s livestock selfsufficiency
levels (SSL) are low relative Malaysia for cattle & buffalo. Sabah’s low levels
of food crop production have resulted in a negative food trade balance.
Sabah holds about 36% of Malaysia’s oil reserves and 15.8% of gas reserves. Sabah is
the top palm oil producer in Malaysia, with 25.4% of total output. Sabah exported 0.4mil
m3 of timber, generating RM 1.1 billion.
K3 focused on driving development of the logistics sector (sea freight & air cargo) to
support manufacturing, agro-food & agro-marine exports. High costs in logistic for
industries in Sabha compounded by the slow pace of infrastructure development, and
unclear policy support.
The volume of container exports is relatively low while port and airport infrastructure
have limited capacity. Policies favouring shipping lines shift costs to industry.
K4 prioritizes the development of the capture fisheries and aquaculture industry. Sabah
serves as a net exporter of fish and fish products. The fisheries and aquaculture sector
primarily thrives in the Eastern Region, particularly Semporna, and the northern part of
the Western Region, including Pitas and Kudat. The main markets for fresh and frozen prawns include China, Korea, Taiwan, Hong Kong,
Australia, Vietnam, and Japan. Interstate exports, to Sarawak and Peninsular Malaysia,
make up 17% of the total seafood exports.
K5 focuses on utilizing Sabah’s extensive biomass resources, notably from oil palm
plantations. Despite its vast volume, only a small fraction of oil palm biomass is
currently used for energy generation, with the majority being discarded. The National
Biomass Strategy aimed to create 25,000 new jobs and offer RM 13.5 billion in
investment opportunities by 2020 in Lahad Datu, Sandakan, and Tawau.
K6 focuses on advancing the digital economy in Sabah, starting with Kota Kinabalu as
the state capital and the hub for administrative and financial services. While the
services sector remains the primary contributor to Sabah’s GDP, tourism aside, it’s
largely comprised of SMEs engaged in low value-adding activities, lacking innovation
and competitiveness on regional and global scales. Building a liveable and competitive
city is crucial to nurturing the digital economy and promoting a dynamic services sector.
Greater Kota Kinabalu attracts business visitors, investors, and tourists, offering diverse
attractions.
By 2019, visitor arrivals in Sabah reached 4.2 million, surpassing the targeted 4.1 million
visitors set for 2020. This achievement is attributed to Sabah’s natural assets and was
primarily facilitated by affordable regional air travel. The state is conveniently accessible
within six hours from major East Asian cities, served by 216 international flights per
week from 20 cities, including 11 from China and three from South Korea. Additionally,
there are 447 domestic flights per week from nine cities across Malaysia.
Source: SEDIA (Sabah Economic Development and Investment Authority)
