Kota Kinabalu: The Federation of Malaysian Manufacturing (FMM) Sabah Branch has called for immediate long-term solutions to address the deteriorating road infrastructure at the Kota Kinabalu Industrial Park (KKIP).
“Poor road conditions could deter investment in the State, especially in KKIP’s Zones 4, 7, 8 and 12,” said FMM Sabah Branch Chairman Liaw Hen Kong, citing frequent potholes, inadequate drainage, faded road markings and insufficient lighting as major safety hazards affecting logistics operations and workers.
He said the situation has worsened over time due to a lack of proper maintenance and roads not being upgraded to handle heavy traffic loads.
“The industrial park sees over 100 heavy-duty trucks carrying silica sand traverse these routes daily from a single foreign investor alone.
“We are frustrated with the unresponsiveness of the Dewan Bandaraya Kota Kinabalu (DBKK) and Tuaran District authorities in managing and maintaining the industrial park’s road infrastructure,” he said.
“A robust infrastructure instils confidence and attracts potential investors,” he added, pointing out that the poor state of KKIP roads could drive away visiting investors and impact future industrial parks planned for Kudat, Kota Belud and Beaufort.
Beyond road issues, he said manufacturers have also faced unreliable power supply problems, particularly in Industrial Zone 8 during the first half of 2025, resulting in production halts, equipment damage and supply chain disruptions.
To address these challenges, FMM proposed that the government adopt management models used in other states, where industrial park developers continue to manage and maintain infrastructure while collecting assessments from tenants.
Liaw urged KKIP Sdn Bhd to take a more active role in serving investors and supporting industrial growth, pointing out the government’s important role in providing necessary infrastructure to boost industry development.
He also called on authorities to create a more business-friendly environment by addressing the infrastructure challenges faced by KKIP investors.
Meanwhile, Small and Medium Enterprises Association (Samenta) Sabah wants the Federal and State authorities to review existing tax policies, arguing that current structures are hampering the growth of local businesses in Sabah.
Its Chairman Datuk George Lim raised these concerns during a recent meeting with Federal Deputy Finance Minister Lim Hui Yin, pointing out that small and medium enterprises face mounting tax pressures that threaten their sustainability.
“SMEs form the backbone of our economy, but Sabah businesses operate under unique challenges, including logistical constraints and infrastructure limitations that differ from Peninsular Malaysia,” said George.
“Rising tax rates are stifling growth, innovation and job creation among our entrepreneurs, he said.
The association is particularly advocating for fiscal incentives to support Sabah’s Blue Economy initiative, which encompasses tourism, marine biotechnology, minerals, renewable energy and ocean conservation sectors.
“The Blue Economy reflects notable growth opportunity for Sabah. We need government support through tax breaks and incentives to encourage investment in this emerging sector,” George added.
He said with appropriate policy support, Sabah’s SMEs could substantially contribute to national GDP while helping to bridge regional economic gaps.
George called for enhanced cooperation between government agencies and SME organisations to develop more inclusive and practical policies.
He said Samenta Sabah is committed to advocating for fairer policies that empower local businesses and fuel Sabah’s economic development.
