Sabah's Economy continue to grow

In the past 10 years, Sabah has experience tremendous growth in its economy, particularly in the tourism and agriculture sector. The global economic downturn in 2008 does not deter Sabah to have a positive GDP of 7.7% in 2008 and 3.3% in 2009.

I would like to share an articles written by Ronnie Teo on Sabah Economy growth. This is very good articles in explaining Sabah economy growth in general and it is suitable for those who still had doubt in believing the Sabah Economy miracle.

*Kota Kinabalu

Exploring Sabah’s growth nodes

Written by: Ronnie Teo


KUCHING: It is a well-known fact that Sabah is often thought of as a place to have fun, to relax and to unwind.

Mention ‘Sabah’ and many will describe a state compris­ing beautiful beaches, scenic mountains and gloriously clear seas.

But this is not all that Sabah has to offer. This dynamic state is actually gearing up for more investment opportunities, leveraging on its strengths and resources to propel itself further.

With its vast coastal lands, mountainous terrains and tropical weather, Sabah is well blessed with traditional sources of wealth such as plan­tations and commodities to fuel its future growth plans.

Additionally, the state’s rich, multi-ethnic cultural heritage, together with its scenic lands, unpolluted environment and natural endowments such as rare wildlife, tropical rainfor­ests and diverse marine life should also help to inspire the emergence of more indus­tries.

As highlighted by Oxford Business Group (OBG) in its The Report: Sabah 2011, the ‘land below the wind’ is con­tinuously transforming into a vibrant oasis of business op­portunities and is on the radar of both local conglomerates as well as foreign corporations trying to make their forays into the Asean region.

Still going strong

According to Sabah’s Chief Minister, Datuk Seri Musa Aman, Sabah’s economy has proven to be on the uptick since the launch of the Sabah Development Corridor (SDC) back in 2008.

“At the height of the glo­bal economic downturn, the growth of advanced economies declined to 0.2 per cent and minus 3.2 per cent in 2008 and 2009 respectively for gross domestic product (GDP),” the Chief Minister told OBG, add­ing that Malaysia recorded 4.7 per cent and minus 1.7 per cent in the same years.

“Sabah, on the other hand, registered a positive 7.7 per cent in 2008 and managed to remain positive in 2009 with a 3.3 per cent growth. We expect the state’s economy to further strengthen in 2011, driven by government spending, buoy­ant commodity prices and new investments.”

Among key industries high­lighted under the SDC are re­source-based industries such as palm oil, cocoa and rubber; food processing industries involving fruits, vegetables, marine, aquamarine and dairy products; petro-chemical and gas industries, as well as silica-based industries.

“The SDC programmes are designed to achieve the socio-economic objectives of Sabah by harnessing unity in diver­sity and natural resources to catalyse investments into new growth areas,” Musa explained.

“The programmes and projects will be funded by a combination of public funds, private sector investments and private finance initiatives.”

To further support this objective, the state offered customised packages to attract private sector investments in promoted sectors, especially in knowledge-intensive areas such as the biotechnology and ICT industries and in desig­nated strategic development areas (SDAs).

“Anchor companies and SMEs, as well as start-ups and quality new investments, will be encouraged to venture into the targeted sectors within the flagship economic clusters and projects in the designated SDAs,” he added.

Unrivalled destination

Another development body set up to boost the state’s progress is the Sabah Eco­nomic Development and In­vestment Authority (Sedia), led by its chief executive of­ficer, Datuk Dr Mohd Yaakub Johari.

In his interview with OBG, Yaakub affirmed Sedia’s objec­tive to promote Sabah as an ‘unrivalled destination’ for business, culture and nature through the SDC initiative.

“To this end, we have been putting in place strategic soft and hard infrastructure with a plan to attract anchor com­panies or investors into key SDC projects, which include a range of economic clusters for oil and gas, palm oil and agro-industry,” he added.

“We are also promoting new sources of growth in line with the National Key Economic Areas (NKEAs). We want to make use of Sabah’s natural endowments, especially in clean and renewable energy, eco-friendly products, waste treatment and biopharmaceu­ticals products from Sabah biodiversity resources.

“Science and technology will drive new sources of growth as we speed up the adoption and diffusion of new technology and innovations in ICT, bio­technology and other relevant areas.”

A third party, the Sabah Economic Development Co­operation (Sedco) believed in making full use of Sabah’s advantageous geography and location to boost its domestic and international appeal.

“Sabah is located close to key Asian markets, and it is in a central position within a fast developing sub-region consisting of the southern Philippines, Brunei and the Indonesian state of Kaliman­tan, as well as being in close proximity to more developed and bigger markets such as Korea, China and Japan.”

With this in mind, BizHive Weekly further investigates investment opportunities in several key industries in the state.

Read more: http://www.theborneopost.com/2011/10/30/exploring-sabah%e2%80%99s-growth-nodes/#ixzz1gNYuXc3A

*Picture taken from http://www.travel-library.com/