Baku:Sabah Rapid expansion in the construction, manufacturing, and service sectors were the main drivers of Sabah's growth last year. The construction sector surged by 28.3 percent, with the manufacturing and services sectors growing by 5.0 and 4.5 percent, respectively. This momentum resulted in a 5.1 percent increase in Sabah's gross domestic product (GDP), reaching RM88.8 billion, marking the state's best performance in six years, according to Chief Minister Datuk Seri Hajiji Noor.
According to BERNAMA News Agency, Deputy Chief Minister II Datuk Seri Masidi Manjun, who also serves as the Finance Minister, delivered Hajiji's speech at the opening ceremony of the Securities Commission Malaysia's (SC) Kembara Borneo 2026 programme. The speech highlighted the importance of translating the state's growth into more competitive local businesses, high-value industries, better job opportunities, and greater community prospects.
The Sabah Maju Jaya (SMJ) 2.0 development framework, scheduled for 2026-2030, aims to enhance competitiveness, productivity, and high-value creation following the successful recovery phase of SMJ 1.0. The state's investment prospects are set to strengthen through the highest development allocation ceiling of RM12.02 billion under the 13th Malaysia Plan (13MP), comprising 933 new projects and 240 ongoing ones.
Hajiji emphasized the aspiration not only to attract businesses to invest in Sabah but also to nurture local companies into national, regional, and global leaders by fostering creativity, resilience, and entrepreneurship among the younger generation. The development of the Blue Economy sector is also expected to generate additional revenue of up to RM3.25 billion annually through modern fisheries, marine biotechnology, and nature-based tourism.
In agriculture, the focus is on adopting high-technology practices and downstream processing to retain economic value within the state. Sabah's strategic location on the island of Borneo positions it as a gateway for regional trade, investment, and tourism under BIMP-EAGA and ASEAN initiatives.
The state government supports efforts to broaden access to alternative capital market financing for local businesses through equity crowdfunding platforms, peer-to-peer financing, private equity, and venture capital. The Malaysia Co-Investment Fund's (MyCIF) Food Security Scheme is also welcomed, providing RM1 in co-investment for every RM2 invested by private investors in the agrotechnology and bioeconomy sectors.
Hajiji urged local entrepreneurs to streamline their accounting records and strengthen corporate governance and risk management to instill investor confidence before raising capital. He also encouraged financiers and capital market intermediaries to explore high-value investment opportunities in Sabah, including aquaculture projects, downstream processing plants, manufacturing sites, and tourism facilities.
Sabah, with its resources, strategic location, and entrepreneurial spirit, aims to strengthen the links between local businesses and the necessary capital and strategic partnerships for continued growth.