Sabah Records a Historic RM84.3 billion Economic Output in 2024

31 July 2025

KOTA KINABALU: Sabah has achieved a record high total economic output of RM84.3 billion in 2024, marking a continued strong upward trend since 2021.

Chief Minister Datuk Seri Panglima Hajiji  Noor said, "Total trade value has also exceeded RM100 billion for three consecutive years, reaching a peak of RM118 billion in 2022, a clear testament to our expanding global connections," he stated at the Malaysia Co-Investment Fund (MyCIF) Nationwide Roadshow held at Le Méridien Hotel.

His speech was delivered by the Minister of Industrial Development and Entrepreneurship, Datuk Phoong Jin Zhe.

"Sabah’s economic transformation has been truly remarkable. From an economy primarily based on the primary sectors, we have evolved into a diverse and dynamic powerhouse. Sectors such as tourism, manufacturing, and services now form the backbone of our present and future growth.

"As we align ourselves with Malaysia’s broader economic objectives, our commitment to progress remains steadfast. This is reflected in our five-year ‘Hala Tuju Sabah Maju Jaya’ (SMJ) roadmap, crafted in 2021, which rests on three foundational pillars: agriculture, industry, and tourism," he explained.

The Chief Minister highlighted that Sabah’s focus is increasingly shifting towards downstream processing and value-added industries. This includes the landmark Commercial Collaboration Agreement (CCA) with Petronas, which grants Sabah greater participation and a larger share in the oil and gas sector. He also mentioned the development of new industrial parks in Kota Belud, Beaufort, and Kudat, with the Blue Economy Industrial Park set to attract substantial investments.

Agriculture remains a key pillar, he added, with efforts to expand paddy cultivation, introduce crop takaful schemes, and focus on high-value crops such as MD2 pineapples. "Our new Rural Agricultural Economic Revolution (RAER) plan (2025-2030), with an initial allocation of RM10 million, is specifically designed to uplift rural economies, diversify income sources, and reduce unemployment through agricultural sector opportunities," he said.

Hajiji reiterated Sabah’s active promotion of the Blue Economy, exploring marine harvests, ocean-based renewable energy sources like Ocean Thermal Energy Conversion (OTEC), and marine biotechnology.

He also emphasised the immense potential in green technology and the digital economy, citing major investments such as the RM31 billion Esteel Enterprise Sabah project.

"Despite this impressive trajectory, we recognise that many Micro, Small, and Medium Enterprises (MSMEs) still face persistent challenges in accessing capital to innovate, expand, and fully capitalise on these opportunities. Traditional financing models, while essential, often present hurdles such as collateral requirements, lengthy processes, or limited understanding of niche, innovative ventures specific to Sabah," he explained.

"Enhancing access to alternative financing options is crucial, bridging the funding gap by providing MSMEs with accessible financial support as an alternative to conventional bank loans. This includes encouraging local entrepreneurs to leverage MyCIF’s matching investment model to scale their businesses. When accessible funding is available, it offers vital support to enterprises in remote areas or in specialised sectors like eco-tourism and sustainable agriculture, which often struggle to secure traditional loans," he added.

Hajiji stressed that alternative finance will also be vital for Sabah’s young, innovative entrepreneurs, particularly in the digital and creative sectors, who require agile and responsive funding to turn their ideas into reality.

"We are witnessing a new generation of Sabah entrepreneurs in the digital and creative spaces, who need flexible funding solutions. These platforms also enable individual Sabahans and local investors to directly support local businesses, strengthening our economic ecosystem and ensuring that wealth benefits our communities.

"By strengthening access to alternative financing, we can unlock economic value across the entire supply chain, from food security to eco-tourism," he said.

He explained that MyCIF is a key national initiative aimed at regulating alternative finance platforms, with a focus on de-risking investments and incentivising private sector involvement. "When investors put their money into Sabah businesses via Equity Crowdfunding (ECF) and Peer-to-Peer (P2P) platforms, MyCIF co-invests alongside them, amplifying impact and helping businesses reach their funding targets more swiftly.

This initiative exemplifies strong collaboration between the State Government and federal agencies such as the Securities Commission. Together, we are building an ecosystem where every Sabahan entrepreneur has the opportunity to thrive," he affirmed.

He urged all business owners, aspiring entrepreneurs, and investors in Sabah to explore these alternative financial avenues.

"They are not just about funding; they are about fostering community, empowering local talent, and driving our collective prosperity. Let us work together to build a resilient and thriving Sabah," he concluded.