Kota Kinabalu: Sabah’s natural gas resources could become a key catalyst in transforming the State’s east coast into a new industrial growth hub, with reliable energy supply emerging as a critical factor in attracting investment and expanding downstream industries.
Universiti Teknologi MARA (UiTM) Faculty of Administrative Science and Policy Studies political economist Assoc Prof Dr Firdausi Suffian said natural gas would play an increasingly important role in supporting Sabah’s economic expansion as the State seeks to move beyond resource extraction towards higher value-added industries.
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“Natural gas is a very important input for our energy,” he said during the 13th Sabah Oil, Gas and Energy Conference & Exhibition, adding that a reliable energy supply would be essential to achieving Sabah’s sustainability agenda and industrial ambitions.
Firdausi said the development of Sabah’s discovered gas resources, including the Gutiara Cluster, presents a significant opportunity to strengthen the State’s energy ecosystem while supporting economic activity, particularly on the east coast, which has historically faced challenges related to power supply reliability.
“Improvements in the energy sector could help unlock new economic potential in the region,” he said.
The former Invest Sabah Berhad Chief Executive Officer stressed that Sabah’s long-term success depends not merely on possessing natural resources, but on how effectively those resources are converted into industries that create lasting economic value.
Earlier in the discussion, he noted that resource wealth must ultimately be transformed into financial assets capable of supporting public development.
“Resource wealth is supposed to be for public development. But if the resource wealth is not translated into financial assets, that will be very difficult to invest,” he said.
Firdausi argued that Sabah should prioritise the development of downstream industries linked to its oil and gas resources rather than relying primarily on revenue from upstream activities.
This includes attracting energy-intensive industries, expanding manufacturing activities, strengthening local supplier networks and creating opportunities for small and medium enterprises (SMEs) within the oil and gas value chain.
He added that large-scale industrial investments would generate multiplier effects by stimulating local businesses and encouraging the growth of supporting industries.
While Sabah continues to pursue renewable energy opportunities, Firdausi said natural gas remains a vital component of the State’s energy strategy.
He also highlighted Sabah’s sustainability credentials, noting that the State made the strategic decision in 2008 not to proceed with coal-fired power generation.
“When it comes to our energy, when it comes to sustainability, when it comes to environment, nothing beats Sabah,” he said, while acknowledging that environmental goals must be balanced with the practical need for a reliable energy supply to support economic development.
Firdausi recalled that Sabah experienced significant electricity supply challenges in previous years, particularly on the east coast, but said the situation has improved considerably.
Power interruptions have fallen from around 1,000 incidents previously to fewer than 300, with further reductions targeted.
He said continued improvements in energy reliability, coupled with new gas developments, could strengthen Sabah’s appeal to investors seeking locations with stable and dependable power supply.
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