Agriculture: The Primary Engine of Sabah’s Economic Growth

3 August 2025

KOTA KINABALU: The State Government will continue to ensure that the agricultural sector continues to serve as the engine of growth and a key driver of a more dynamic and resilient economy in Sabah.

Chief Minister, Datuk Seri Panglima Hajiji Noor, stated that the agricultural sector is not only the third largest contributor to the state’s economy but also plays a critical role in ensuring national food security.

“This sector contributes RM12.2 billion, or 14.5 per cent, to Sabah’s Gross Domestic Product (GDP). Therefore, the state government is prioritising efforts to strengthen this sector through more strategic and inclusive approaches,” he said at the Closing Ceremony of the 2025 National Farmers, Breeders and Fishermen Day (HPPNK) held at the Sabah International Convention Centre (SICC) on Sunday.

The event was officially closed by Prime Minister, Datuk Seri Panglima Anwar Ibrahim. Also present were the Minister of Agriculture and Food Security, Datuk Seri Mohamad Sabu, along with other state and federal leaders.

Hajiji noted that as a state blessed with fertile land and a tropical climate suitable for agriculture, Sabah is taking bold steps to support the national food security agenda.

He said among the concrete measures taken was the re-establishment of the Sabah Paddy and Rice Board last year, after its dissolution in 1981, to revitalise the local paddy industry and increase the Self-Sufficiency Level (SSL) for rice to 30 per cent by 2026 and 60 per cent by 2030.

“This move aligns with the Federal Government’s priorities under Anwar’s leadership, which places emphasis on the importance of the agricultural sector, particularly in paddy cultivation and local rice production,” he added.

In line with the transformation of the nation’s agri-food sector, Hajiji stressed the importance of adopting modern technology such as the Internet of Things (IoT) and smart farming to enhance production efficiency, generate higher productivity, and attract the younger generation.

He stated that Sabah currently has 15 Permanent Food Production Parks (TKPM), which have successfully produced more than 1,494 metric tonnes of food and generated returns exceeding RM4.32 million to date.

Hajiji also announced the first high-impact strategic investment in the Blue Economy sector , the development of a European Union-standard tuna and deep-sea seafood landing port in Kota Kinabalu by the State Government in collaboration with a local company, with an investment value reaching RM360 million.

According to him, the port is expected to land 50,000 tonnes of tuna annually, with the potential to generate an economic value of up to RM1.8 billion per year, thus positioning Sabah as a key player in the deep-sea fishing industry.

Hajiji also urged the farming, livestock and fishing communities in Sabah to be more open to change and to explore new technologies in modern agricultural practices and farm management.

“We want this community to become progressive and competitive players. The future of this sector depends on their ability to innovate and adapt to the new landscape of modern agriculture.

“We also want this sector to continue advancing, generating income for the people and becoming the backbone of food security and national well-being,” he said.