Sabah: Efforts in maintaining investors and economic stability following the ESS-Zone

Tuesday, May 21, 2013

With programmes aimed at boosting education and rural development gaining pace, Sabah’s government will be hoping that its move to calm investors by setting up a regional security zone following an incursion in February proves effective.

On March 28, Kuala Lumpur approved an initial allocation of RM200m ($64.76m) to fund the Eastern Sabah Safety Zone (Ess-zone), which was put in place a week earlier to protect the area from further intrusions in the wake of an offensive launched by Philippines-based rebels. 

Officials said they were preparing to purchase unmanned aerial vehicles, attack helicopters and speedboats.

Once fully implemented, the Ess-zone is expected to send out a message of reassurance to investors and tourists, although experts remain divided on the long-term impact the incursion could have on Sabah’s economy. 

Silam member of parliament Salleh Kalbi said that the security zone formation would give a major impact, not just economy-wise, but could stimulate the tourism, education and socio-cultural sectors while creating 100,000 employment opportunities.

“Setting up the Ess-zone will definitely boost the security level in east Sabah in the best possible manner,” Chief Minister Musa Aman told local media in March. “This will simultaneously uplift the confidence of tourists and foreign investors to visit and carry out economic activities in Sabah.”

The leadership will also be keen to relay recently published data on the Government Transformation Programme (GTP), which indicates that its commitment to modernising Sabah is producing results.

Given the incursion in Lahad Datu last february, tourist arrivals into the state was miraculously going against expectation that the tourism industry would suffer, instead there was an uptrend. Perhaps the Ess-Zone efforts and confidence given by the tourism ministry and security beef up played a big role in this. Not to mention the marketing done by registered tour operators.

Hence, in the long term it is good to know that there is confidence instilled that the economy will have a better outlook, which could mean a lot of investors be it domestic or foreign to have their investment grow.

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