Kota Kinabalu: Sabah’s economy has recovered and grown since the Covid pandemic with Kota Kinabalu Industrial Park (KKIP) experiencing significant growth with major investments.
These include the RM4.2 billion project by South Korea’s SK Nexilis and RM3 billion manufacturing facility by SBH Kibing Solar, both expected to create thousands of jobs and boost the local economy as well as the role of Sabah’s micro, small, and medium entrepreneurs (MSMEs).
The Sabah Maju Jaya (SMJ) initiative, which aims to drive economic growth and development across Sabah, integrates MSMEs into its economic development plan by emphasising their role in diversifying the economy, creating jobs, and fostering innovation.
Sabah Finance Minister Datuk Seri Panglima Masidi Manjun said this at the Credit Guarantee Corporation Bhd (CGC) Appreciation Dinner on Monday.
“I am pleased to share that Sabah’s economy has recovered and grown since the pandemic.
“The state has been focusing on a bottoms-up approach to drive socio-economic development, emphasising mobilisation of the grassroots economy.
“Key sectors such as agriculture, tourism, and manufacturing are expanding, contributing significantly to the state’s economic output.
“Despite these positive developments, there is more we can do collectively to boost growth and create more jobs in Sabah, especially for MSMEs.
He said the main areas of the Sabah Maju Jaya (SMJ) development plan include:
- Diversifying the economy by emphasising the role of MSMEs:
- Creating Jobs through the support of MSMEs:
- Fostering Innovation within MSMEs;
- Financial Facilities to support MSMEs.
- Encouraging MSMEs to adopt new technologies.
- Enhancing infrastructure to improve market access for MSMEs.
- Promoting Sustainable Practices and benefit from economic growth while aligning with environmental conservation goals.
The initiative supports MSMEs with financial facilities, encourages the adoption of new technologies, and improves infrastructure to enhance market access.
Additionally, it promotes sustainable practices, ensuring that MSMEs contribute to and benefit from Sabah’s economic growth while aligning with environmental conservation goals, Masidi said.
“We know MSMEs drive innovation, create jobs and foster community development.
“In Sabah, these enterprises are not just businesses; they are the lifeblood of our communities, representing our people’s entrepreneurial spirit and resilience.”
MSMEs in Malaysia account for about 7.3 million jobs.
This represents a substantial portion of the workforce, highlighting MSMEs’ critical role in providing employment and supporting the local economy.
MSMEs contribute approximately 39.1 per cent to Malaysia’s GDP.
This includes substantial contributions from various states, including Sabah.
“Over the past few years, the Sabah Government has implemented several initiatives to ensure the growth and sustainability of MSMEs.
“We have recognised the challenges faced by these enterprises, particularly in accessing financing, navigating regulatory frameworks, and expanding market reach.
“We have collaborated with various financial institutions to provide substantial financial support to our MSMEs,” Masidi said.
