Image credit: NST
Kota Kinabalu: Sabah secured investments amounting to RM1.7 billion as of June this year, which encompasses foreign and domestic investments in the main sectors such as manufacturing and services.
State Finance Minister Datuk Seri Masidi Manjun said it is acknowledged that Sabah had received significant investments from SK Nexilis Malaysia Sdn Bhd from South Korea and Kibing Group from China, with investments of RM4.28 billion and RM2.48 billion respectively.
“These investors have begun producing and exporting their products internationally commencing end of 2023 for SK Nexilis as well as early this year for Kibing Group.
“Efforts to develop the industrial sector in Sabah have shown positive outcomes, with the manufacturing sector contributing RM6.03 billion to Sabah’s GDP, which represents 7.3 per cent increase in 2023, compared to RM5.78 billion, or 7.0 per cent, in 2022.
“The growth rate for the manufacturing sector in Sabah was 4.4 per cent in 2023, surpassing the national average growth rate of 0.8 per cent, making it the highest rate in Malaysia,” he said.
He said this year, Kibing Group, through its subsidiary SBH Kibing New Solar Energy (M) Sdn Bhd, had agreed to invest in a new solar glass manufacturing plant with an estimated value of RM7.2 billion through three investment phases.
“This investment is expected to create 5,000 job opportunities in the State. At the same time, Kibing Group commits to increase the production capacity of its solar glass facility in KKIP with an additional third production line. The estimated value of additional investment is RM700 million, which will create 600 additional job opportunities,” he said when tabling the State Budget 2025 at the State Legislative Assembly here Friday.
Masidi said for next year, the State Government had allocated RM124.70 million for development of the industrial and entrepreneurial sectors.
Of this amount, RM64.05 million is allocated to the Industrial Development and Entrepreneurship Ministry and its agencies, whereas RM60.65 million is allocated to other agencies that support industrial and entrepreneurial growth in the State.
He said for next year, a total of RM18.07 million had been allocated for the development of infrastructure in industrial parks at KKIP, Palm Oil Industrial Cluster (POIC) in Lahad Datu and Sabah Oil and Gas Industrial Park (Sogip) Sipitang to make them more conducive and attractive for investment opportunities in Sabah.
The Sabah Economic Development Corporation (Sedco) had been allocated RM16.33 million to continue construction of new business premises and completion of existing projects, including the implementation of Industrial Ecosystem and Capability Development Project in Sabah, which includes entrepreneurship training courses focusing on digital skills, graduate entrepreneurship and technical training.
“For the industrial sector, the focus is not only on a high-level economy to generate more productive state growth but also grassroots economic sectors to enhance inclusive access to the State’s prosperity. Therefore, the development of Small and Medium Enterprises (SMEs) is a key support industry that drives the growth of the Local Manufacturing Sector,” he said.
He said the SME-UP Programme, with an allocation of RM15 million which benefitted a total of 5,201 entrepreneurs, would be continued to enhance the capacity of SMEs in Sabah to become more competitive through the provision of machinery, equipment, as well as packaging and labelling support.
An additional RM500,000 is allocated to expose SME entrepreneurs to the latest technologies, compliance with MeSTI and Halal certification, as well as the legal requirements necessary to penetrate international markets.
To intensify the marketing of SME products in the local market and to provide a platform for SME entrepreneurs to showcase their products, he said partnerships with Kojasa Mart, Desa Fresh Mart and Sabah Credit Corporation Outlet would start in 2025 while continuing partnerships with Bataras Hypermarket and Kedai Mesra Petronas.
“To expand Sabah SME entrepreneurs’ products to domestic and international markets through participations in international expo with target sales of RM50 million, RM13.84 million is allocated for investment promotions, marketing, seminars and SME export programmes.”
In addition, the State Government, through other agencies, will continue entrepreneurship programmes to support SME entrepreneurs such as the PitchBorneo Programme, One District One Product Programme and Rural Entrepreneur Development Programme with the aim of more grassroots entrepreneurs to join the local entrepreneurial market, with an allocation of RM2.5 million.
Source: https://www.dailyexpress.com.my/news/246277/sabah-secures-rm1-7-billion-investments-masidi/