Investment Opportunities: Manufacturing
Investment in Manufacturing
Sabah boasts several industrial parks equipped with robust infrastructure, strategically positioned and supported by efficient logistics, facilitating manufacturing endeavors across a spectrum of sectors.
The manufacturing sector in Sabah is a cornerstone of its economic landscape, leveraging the state’s abundant natural resources and strategic location. With industries ranging from palm oil processing to electronics assembly, Sabah offers a diverse array of opportunities for investors. This sector not only drives economic growth but also creates job opportunities and fosters innovation.
Key to Sabah’s manufacturing prowess is its utilization of locally sourced raw materials, such as palm oil and timber. Processing facilities capitalize on these resources, adding significant value and bolstering the state’s revenue streams. Sustainable practices underscore Sabah’s commitment to environmental stewardship while fueling the sector’s growth.
Supported by government incentives and modern infrastructure, Sabah’s manufacturing sector continues to attract both domestic and foreign investment. Industrial parks equipped with logistical support and collaborations between sectors foster an ecosystem conducive to innovation and competitiveness. As Sabah solidifies its position as a manufacturing hub, the sector stands poised for further expansion, driving the state’s economic prosperity.
Our Statistics
Commodities & Downstream Manufacturing
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.
Reasons to Invest:
25.4% Total Input Oil Production
in Malaysia
36%
of Malaysia's Oil Reserves
Top Palm Oil Producer
in Malaysia
15.8%
of Malaysia's Gas Reserves
0.4 mil m3 / RM1.1 bil
Timber Exports
Initiatives:
Palm Oil Industrial Cluster 2.0 (POIC 2.0)
Transform POICS in Lahad Datu & Sandakan to attract investors & increase value-added downstream anufacturing
Sipitang Oil & Gas Industrial Park (SOGIP)
Continue investor attraction to make SOGIP the centre for integrated Oil & Gas Industries
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.
Palm Oil Industrial Cluster (POIC)
The Palm Oil Industrial Cluster (POIC) represents a strategic initiative aimed at enhancing the value chain and promoting sustainable development within the palm oil industry. Situated in key palm oil-producing regions, POIC serves as a nucleus for integrated downstream activities, including refining, processing, and manufacturing of palm oil-based products. By leveraging infrastructure, technology, and favorable investment incentives, POIC facilitates innovation, efficiency, and market competitiveness, driving economic growth and employment opportunities while ensuring environmental stewardship and social responsibility. With its comprehensive ecosystem and commitment to excellence, POIC stands as a cornerstone of the palm oil industry’s evolution towards higher value-added products and global market leadership.
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