Investment Opportunities: Human Capital
Investment in Human Capital
The advancement of Malaysia toward a knowledge-based and higher-value economy relies on the development of a highly skilled workforce.
Investing in
human capital not only contributes to economic growth but also enhances
personal well-being through various socio-economic advantages. The Eleventh
Plan emphasizes improving labour market efficiency, aligning Technical and
Vocational Education and Training (TVET) with industry needs, promoting lifelong
learning for continuous skill enhancement, and enhancing overall education
quality.
The ultimate goal is to ensure that every Malaysian has access to quality
education, whether through TVET or academic pathways, fostering knowledge,
skills, ethics, and morality necessary for global challenges. An efficient labor
market will facilitate a better match between workforce supply and demand,
benefiting all Malaysians and promoting national growth. Ongoing upskilling and
reskilling opportunities will enable individuals to stay relevant and contribute to
Malaysia’s emergence as an advanced and inclusive nation.
Our Statistics
Sabah, with a population of 3.6 million, is Malaysia’s second-largest state. It boasts the highest labor force participation rate in the country, indicating a robust economy.
Reasons to Invest:
3.6 MIL
2nd largest population in Malaysia
HIGHEST LABOUT FORCE
Highest labour force participation in Malaysia
Investment Opportunities
Kota Kinabalu Industrial Park (KKIP)
KKIP is located seven kilometres from the Sapangar Bay Container Port and offers ready-to-use manufacturing facilities and factory lots, as well as support facilities such as residential areas. As of 2021, 241 companies established operations in KKIP spanning various activities including food products, processing of wood, rubber, plastic and metal materials, electronics and electrical manufacturing, automotive parts, construction materials, as well as logistics and warehousing.
Sipitang Oil & Gas Industrial Park (SOGIP)
SOGIP serves as a focal point for oil and gas investment within the Sabah, Brunei, and Labuan economic centres. Multinational oil production corporation Petronas established its operations at SOGIP in 2016 investing USD$1.9 billion to develop its ammonia, urea, and granulation plant known as the Sabah Ammonia Urea (SAMUR) project.
Sabah Agro Industrial Precinct
SAIP serves as a hub to develop and process agro-based products, nutraceuticals and biopharmaceuticals. Its facilities include a Post-Harvest Collection and Handling centre, food-processing Production Line Facility, Herb Manufacturing centre, greenhouses and net houses suited for Controlled Environment Farming, Cosmetics and Personal Care Manufacturing Facility, small-medium enterprises lots, and storage facilities. SAIP offers assistance with Good Manufacturing Practices certification from the Standard Industrial Research Institute of Malaysia (SIRIM) and Halal certification from the Department of Islamic Affairs Sabah (JHEAINS).
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Learn more on other Core Clusters:
Learn more on KEGA on other investment areas:
7 Keys Economic Growth Area (KEGA)
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.
