Sabah Given New Focus as a Driver of Bumiputera Economic Growth

10 April 2026

KOTA KINABALU: Sabah has been strategically prioritised as a key region in strengthening the national Bumiputera economic agenda, aligning with the government’s commitment to bridge regional development gaps under the Bumiputera Economic Transformation Plan 2035 (PuTERA35).

In a move to reinforce this focus, the Bumiputera Agenda Delivery Unit (TERAJU) organised the TERAJU Aspirasi Outreach 2026 at the Sabah International Convention Centre (SICC), Kota Kinabalu, yesterday.

The event was officiated by Sabah’s Chief Minister, Datuk Seri Panglima Hajiji Noor, and was attended by Deputy Minister of Economy, Dato’ Indera Mohd Shahar bin Abdullah.

During the event, TERAJU unveiled several facilitative programmes, including ASCEND, ENHANCE, and XCELERATE, which are designed to provide clear and structured pathways for development. These programmes aim to move Bumiputera companies from strengthening fundamentals through to commercialisation, market readiness, and expansion, thereby driving the creation of real value in high-potential businesses.

A key highlight of the event was the launch of the Sabah and Sarawak Bumiputera Scaling Fund (BSSF), which offers RM100 million in funding to assist large-scale local Bumiputera small and medium enterprises (SMEs). This initiative reflects the government’s efforts to support the scaling-up of local businesses and deepen Bumiputera participation in the economy.

The programme marked the first on-the-ground outreach for PuTERA35 in Sabah, delivered through the TERAJU Aspirasi Outreach platform. It forms part of an ongoing campaign to raise awareness among Sabahans about the opportunities within the value chain outlined in the plan, ensuring they are well-positioned to seize these opportunities.

The implementation of this initiative aligns with broader efforts to empower the Bumiputera economy within the framework of inclusive national development, as outlined in the Thirteenth Malaysia Plan (RMK-13) and the MADANI Economic Framework. The focus is on strengthening company capabilities, improving investment readiness, and accelerating the scaling of Bumiputera businesses across various sectors.

It also supports key development pillars such as Upholding Social Justice and Drive 12, which aims to strengthen development in Sabah and Sarawak towards achieving regional balance under PuTERA35. The plan emphasizes more inclusive, balanced, and value-driven development.

Sabah continues to be a vital contributor to the national economy, with positive growth figures showing an increase from RM78.7 billion in 2021 to RM84.3 billion in 2024, with projections reaching RM86.4 billion in 2025. While tourism remains a significant sector, contributing approximately 12% to the local economy, Sabah is now exploring new avenues through the Blue Economy, including high-value fisheries, marine renewable energy, and aquaculture. These sectors are expected to unlock high-value economic opportunities and create new employment prospects for Sabahans, supporting the objectives of PuTERA35.

In line with the plan’s awareness framework, the focus in Sabah is on value creation and enhancing the competitiveness of Bumiputera companies through expanding participation in high-growth sectors, strengthening the local entrepreneurial ecosystem, accelerating the growth of Micro, Small, and Medium Enterprises (MSMEs), and increasing their contributions to both the state and national economy.

In his speech, the Chief Minister expressed optimism about the government’s initiatives, stating that the emphasis placed through PuTERA35 on developing the Bumiputera economy was vital for Sabah’s progress. He highlighted the importance of programmes like the Aspirasi Outreach in ensuring more local companies could grow, create value, and contribute sustainably to the state’s development. He emphasised that strengthening high-value sectors and enhancing local enterprise competitiveness were key strategies to ensure inclusive growth for Sabah.

Deputy Minister Shahar Abdullah added that the focus should not merely be on participation statistics but on the tangible value created and the real impact felt by the rakyat. He urged more Bumiputera companies in Sabah to seize available opportunities, improve their capabilities, and develop resilient businesses that could compete in high-value sectors.

The event also saw the signing of six strategic agreements between TERAJU and industry partners, including collaborations with SCENIC, STC, Bank Rakyat, and Agro Bank. These agreements aim to strengthen the Bumiputera ecosystem at the state level by expanding access to financing, scaling businesses and vendors, reinforcing local supply chains, and developing technology and innovation ecosystems. These efforts are aligned with the aspirations of PuTERA35 and Sabah Maju Jaya (SMJ), particularly in the Blue Economy and technology-based industries.

Furthermore, the event featured the handover of the INNO4C project, part of the DPUB Sabah 2019 initiative, which benefited six rural communities through four scaling projects involving the production of chilli, shrimp paste, oysters, and kelarai mats. Led by Universiti Sains Malaysia and implemented in collaboration with agencies such as Yayasan Sabah, the Malaysia Pepper Board, and the Department of Fisheries, the project has significantly increased income levels among Bumiputera B40 communities by 40%.

This achievement was driven by a combination of capacity-building, technological adoption, and strategic industry collaboration, resulting in increased production, improved product quality, and more sustainable income streams.

Looking ahead, TERAJU Aspirasi Outreach 2026 will continue to serve as a vital platform for direct engagement between the Ministry of Economy, Sabah’s government, agencies, and business communities, ensuring that the message of PuTERA35 reaches and benefits local stakeholders. With its pillars, drivers, and over 132 strategic initiatives, PuTERA35 remains the main framework for delivering focused, high-impact economic empowerment for Bumiputera, especially in strengthening company value and expanding economic opportunities nationwide, including in Sabah and Sarawak.