Sabah Courts Sustainable Energy Investment as Petra Seaga Eyes RM1.4 Billion Biomass Project

23 January 2026

DAVOS Switzerland: Sabah is positioning itself as a regional hub for sustainable energy and downstream processing as global investor Petra Seaga evaluates a potential investment of about USD300 million (RM1.4 billion) in the state’s biomass and renewable energy sector.

Chairman of Invest Sabah Berhad, Datuk Roger Chin, said the proposed investment reflects growing international confidence in Sabah’s long-term economic direction, particularly in sustainable energy and the bioeconomy.

Speaking on behalf of the Sabah Chief Minister at the World Economic Forum 2026 in Davos, Chin said Petra Seaga has expressed interest in establishing a presence in Sabah and is studying the feasibility of developing an integrated biorefinery complex.

He stressed, however, that the State Government views such expressions of interest as a vote of confidence rather than a guaranteed outcome, noting that all projects must meet commercial, regulatory and sustainability requirements.

According to Chin, the project under consideration goes beyond a conventional energy facility. It would potentially involve the conversion of agricultural and forestry biomass, including palm oil residues, into sustainable aviation fuel (SAF), biofuels, biochemicals, bioplastics and renewable power, based on circular economy principles to minimise waste and maximise efficiency.

“Sabah is particularly well positioned for this type of development,” he said, citing the state’s large volumes of underutilised biomass generated annually from palm oil, timber and agricultural activities.

Chin said the initiative aligns with Sabah’s broader strategy to move away from a purely resource-based economy towards downstream processing, advanced manufacturing and technology-driven industries, with sustainable energy as a key pillar of this transition.

He added that the State Government is strengthening core infrastructure, including water security, energy reliability, transport, logistics and industrial-ready land, while aligning policies to be more predictable and investor-friendly. Sabah, he said, is especially receptive to ESG-compliant investments and blue economy initiatives.

Sustainable aviation fuel has emerged as a strategic priority for the region amid rising air travel demand and increasing pressure on airlines to decarbonise.

Chin said Sabah aims to help address the regional supply gap, with a longer-term ambition to serve wider East Asian markets.

Beyond individual projects, Chin said Sabah is focused on building a sustainable industrial ecosystem that could attract technology providers, research partners and downstream users, creating skilled employment and long-term capacity for the state.

He also welcomed the decision by the Southeast Asia Sustainable Aviation Fuel Council to establish its headquarters in Kota Kinabalu, describing it as a significant step in positioning Sabah as a regional platform for policy dialogue and industry coordination.

Chin said Invest Sabah Berhad will continue to facilitate discussions with credible investors, ensuring transparency, regulatory compliance and alignment with the state’s environmental, social and economic priorities.

“Sabah welcomes partners who take a long-term view, respect sustainability and are prepared to work collaboratively with local stakeholders,” he said.