Kota Kinabalu: SABAH needs to diversify its economy by developing its processing and manufacturing sectors to reduce reliance on tourism and the export of raw commodities.
“We need to move away from relying too much on tourism and export of raw commodities such as crude palm oil, given the vulnerability of these sectors to global aftershocks amid slowing demand, the impact of global warming and geopolitical conflicts,” said Datuk Darell Leiking (Warisan-Moyog).
This focus, affirmed Darell, would enhance Sabah’s economic relevance in the region, while increasing prospects for trade and job opportunities.
“Sabah must exploit its strategic position in the Asia region to tap into increased opportunities and brightening prospects, amid increased competition from our neighbours such as Sarawak which is rapidly developing its industrial sector,” he said.
Unfortunately, Darell lamented this vision is constrained by the high operation cost and setting up factories and industries, lack of skilled labour and insufficient basic infrastructure such as power and water supply.
Earlier, Datuk Seri Shafie Apdal (Warisan-Senallang) called for serious efforts to commercialise Sabah’s agricultural products which would generate more jobs and opportunities for local producers, especially in rural areas.
“Building the agrifood sector to beat poverty is an important step to help rural folks gain better income, become more productive and develop more resilient communities,” said Shafie.
However, he noted there is a lack of factories and downstream processing to develop the potential and add value to Sabah’s fresh produce.
“Our producers have been proudly growing fresh chilli, tomatoes and pineapples of high quality, but where are the chilli and tomato sauce factories? Where are the pineapple cannery factories in Sabah?”
Darell cautioned that the State Government must take basic infrastructure and logistics seriously to attract investors or risk them relocating to Sarawak.
“We need to give investors what they need if we want to keep them in our shores,” Darell told the State Legislative Assembly during the debate session.
According to the Malaysian rating corporation data, Darell noted that 78.1 per cent of approved investments were realised from 2018-2023.
How much of the 78 per cent were realised in Sabah and were there investors relocating to Sarawak? Darell questioned the State Government.
In a related issue, Darell hoped the State Government would increase efforts to retain talent and bring back Sabahans who are working in Peninsular Malaysia and other countries.
“Why can’t we invest in Sabahans, identify talents and develop their skills? This way they are better equipped with the competencies to lead a better life and contribute to the state,” he said, calling for increased attention to technology and the development of skilled workers.
