Kota Kinabalu: There is a need for the State Government to take unconventional approaches such as carbon trading to attract more foreign investments into Sabah and double its Gross Domestic Product (GDP) per capita.Deputy Chief Minister Datuk Seri Dr Jeffrey Kitingan said Sabah’s GDP per capita is at a meagre $6,000 USD, falling far behind the nation’s GDP per capita of $12,000 USD.
He explained that Sabah attracts RM30 billion worth of foreign direct investments, but needed about RM46 billion to RM 48 billion worth of investments to reach its target GDP per capita of $12,000 USD.
“The Government’s current policy right now is to give way to foreign investors, as we cannot expect allocations from the Federal Government because they’re also facing the same problems,”
He told reporters during the Parti Solidariti Tanah Airku’s (StarSabah) 2023 Chinese New Year celebration at Wisma Kinsabina, here, Sunday.
Jeffrey, who is also Agriculture, Fisheries and Food Industry Minister, said among avenues the Government must tap into is conservation and carbon trading which would attract more foreign investments into Sabah.
“Previously we only thought about logging, and when (these resources) are exhausted, we become directionless.
“As a side effect, it also brought pollution and climate change, which is why we face floods and fires here and there. So we have to shift our mind to conservation.
“Through conservation we do not cut logs and harm the environment, yet we yield returns through the sale of carbon credit which is needed by the world to stabilise climate change. This will yield bigger returns than logging.
“When we have policies that are focused towards a green circular economy, global investors will be attracted to invest in Sabah.
“We need to have extraordinary policies. If we continue doing the usual things, there will be no change, so we must think of a way to bring in results that was not thought of before,” he said.
During the Sabah International Business and Economic Summit last year, Jeffrey said Sabah is expected to collect an annual revenue of RM2.2 billion to RM5.6 billion from carbon trading and other natural asset monetising deals.
In August 2022, an interim committee on climate change had reportedly tasked itself to develop a carbon exchange law for the State. It was determined that the Sabah Foundation would take the lead in carbon exchange deals.
In October 2021, it was reported that the State Government signed the Nature Conservation Agreement (NCA), 100-year carbon trading deal with a Singapore registered company named Hoch Standard Pte Ltd involving 2 million hectares of state land.
It had sparked massive controversy among various stakeholders due to a lack of transparency, Hoch Standard’s questionable legitimacy and potentially adverse impacts on indigenous communities.
However, the State Attorney General’s Chambers (AGC) said that although the NCA was signed, it was not legally binding and was yet to be finalised. Last December, Jeffrey was reported as saying that he aspires for the NCA to be implemented this year.
