Kota Kinabalu: The State Government has dropped plans to develop a new industrial park at Kimanis after finding that the proposed site would involve the acquisition of land belonging to more than 1,500 owners, making the project financially unviable.
Assistant Industrial Development, Entrepreneurship and Transport Minister Datuk Jonnybone J Kurum said preliminary assessments conducted with the Sabah Lands and Surveys Department found that the proposed site faced significant land acquisition challenges, with compensation and possible relocation costs expected to place a substantial financial burden on the State Government.
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He said the State Cabinet decided in February 2025 not to proceed with the proposed industrial park at the identified Kimanis site after considering the need to ensure industrial development is carried out prudently, sustainably and without placing undue pressure on the State’s finances.
“However, this decision does not mean that Sabah’s industrial development agenda has been halted,” he said when replying to Datuk Pg Saifuddin Pg Tahir (GRS-Pantai Manis) during question time at the State Legislative Assembly, Tuesday.
Jonnybone said the Ministry has instead begun exploring alternative and more viable locations, including Beaufort, which has strategic advantages and is expected to require significantly less land acquisition, thereby reducing development costs and expediting planning and implementation.
He said the Ministry is currently working with relevant agencies to assess the suitability of Beaufort as an alternative site, including evaluating land acquisition costs, adding that the approach is in line with the State Government’s aim of ensuring industrial parks are developed strategically, sustainably and with optimum economic returns while minimising costs and impacts on local communities.
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During supplementary questions, Datuk Seri Mohd Shafie Apdal (Warisan-Senallang) asked what measures the Government was taking to develop Sabah’s downstream oil and gas industry, noting that states such as Johor and Sarawak had generated substantial economic benefits despite Sabah having its own oil and gas resources.
Replying, Deputy Chief Minister III cum Industrial Development, Entrepreneurship and Transport Minister Datuk Ewon Benedick said the first Sabah Oil and Gas Services and Equipment Conference held last month had resolved, among other matters, to develop a Sabah Oil and Gas Services and Equipment (OGSE) Roadmap 2026-2030 aimed at expanding the State’s downstream oil and gas sector.
“I will present this proposal to the State Cabinet and, hopefully, after obtaining its mandate, I will return to this House during the next sitting to table the roadmap,” he said.
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