Plans for Economic Growth and Entrepreneurial Boost in 2026

17 December 2025

KOTA KINABALU: Datuk Ewon Benedick, the deputy Chief minister III and Minister of Industry, Entrepreneur, and Transport, shared plans to bolster the state's economic development through entrepreneurship and industry support initiatives during the First Meeting of the First Session of the Seventeenth Sabah State Legislative Assembly.

Highlighting the government's commitment to fostering Small and Medium Industries (SMIs), he emphasised that these sectors would remain a key focus as catalysts for the manufacturing industry. He announced the continuation of the ‘Buy Sabah Goods’ campaign in 2026, which will include the organisation of MSMEs Entrepreneurs Carnivals across various districts. The events aim to explore new market opportunities, increase sales, facilitate business matching with local supermarkets, and promote MSME products within Sabah and beyond.

The Minister noted that, in 2025, business matching efforts with local supermarkets generated RM2.9 million in sales and RM92,500 in counter sales revenue, demonstrating the programme’s positive impact.

Expressing gratitude for the government’s support, Ewon said the allocation of RM15 million is to sustain the SME-UP Assistance Programme in 2026. The initiative will undergo enhancements, including more rigorous technical assessments, capacity-building efforts, and impact evaluation, to ensure that provision of machinery and equipment significantly boosts MSME productivity.

The collaboration with Bataras Supermarkets and Petronas Dagangan Berhad will also continue into 2026. As of November 2025, these partnerships had recorded sales of RM885,000 and RM2.91 million respectively. Building on this success, plans are underway to expand cooperation with Aeon Supermarkets to extend market access into Peninsular Malaysia.

Ewon further stated that Sabah’s participation in international expos continues to generate substantial benefits. In 2025, 18 expos involved 115 entrepreneurs, resulting in potential sales totalling RM95.9 million, exceeding the initial target of RM70 million and surpassing the RM60.3 million achieved in 2024.

The Ministry also intends to intensify the Fulfilment Services Programme through strategic collaboration with Pos Malaysia Berhad, selecting 30 Sabah MSME entrepreneurs to improve delivery efficiency, reduce logistics costs, and access Pos Malaysia’s extensive distribution network nationwide.

Human capital development remains a priority, with several training programmes scheduled for 2026. These include courses on Food Safety Certification (MeSTI), product quality enhancement via retort technology, Halal certification compliance, and cost calculation.

Digital transformation efforts will focus on developing an entrepreneur database system and more effective programme monitoring platforms, facilitating precise policy analysis and better inter-agency coordination. The government aims to strengthen strategic alliances with industry players, agencies, and institutions to prevent programme overlaps and promote integrated industry development.

Ewon reaffirmed the government’s commitment to a clear and strategic pathway for entrepreneurial growth, service delivery improvement, and sustainable economic prosperity for Sabah in 2026.

On the inclusion of Transport in the Ministry, Ewon said, “In line with the expansion of roles and responsibilities, the State Government has rebranded this ministry to reflect a broader and more strategic mandate. The inclusion of the Transport portfolio into this ministry is both strategic and timely, as transportation is a vital element and support for Sabah’s economic growth.”

“An efficient transportation system, whether through road networks, ports, railways, or airports, facilitates the movement of goods and local industry outputs. With improved utility networks, logistics systems, and infrastructure, we can promote Sabah as a high-impact investment destination and create a more conducive business environment for entrepreneurs and MSMEs to grow sustainably and thrive. This direction aligns with the Sabah First agenda I introduced in this ministry, aimed at building an economic ecosystem that enables Sabah companies to develop, remain competitive, and succeed at the national and regional levels.”

“My ministry is committed to ensuring that the transportation portfolio is fully utilised as a catalyst for inclusive and resilient economic development, while also enhancing the people’s standard of living.”