Sabah’s economy set to remain on a positive growth trajectory-Hajiji

30 March 2026

KOTA KINABALU: Sabah’s economy is expected to continue expanding on a positive trajectory despite external pressures, including the effects of a global economic slowdown driven by prolonged conflicts in the Middle East and Eastern Europe.

Chief Minister Datuk Seri Panglima Hajiji Noor said this confidence is underpinned by the implementation of the Sabah Maju Jaya (SMJ) 2.0 Development Plan, which serves as the central pillar of the state’s development agenda for the next five years.

“With the conclusion of the 17th State Election at the end of November last year, the State Government that I lead is committed to intensifying the development agenda over the next five years, guided by the SMJ 2.0 roadmap launched on 30 January.

“This direction is also aligned with the implementation of the 13th Malaysia Plan (RMK-13) from 2026 to 2030. I am therefore confident that, through SMJ 2.0, the state economy will continue to grow positively despite external pressures such as the global economic slowdown arising from ongoing conflicts in the Middle East and Eastern Europe,” he said.

The Chief Minister was speaking at the Investiture Ceremony held in conjunction with the 75th Official Birthday Celebration of the Head of State at Istana Seri Kinabalu on Monday.

Hajiji noted that the ongoing conflicts have also affected

global oil supplies.

“This situation has triggered a global energy crisis, the effects of which will also be felt in this country. I therefore urge the public to exercise prudence, particularly in spending and in the use of vehicles for daily activities,” he said.

At the same time, he advised the public to be more cautious in their use of water following rising temperatures that signal the onset of the El Niño phenomenon, which could potentially lead to a prolonged drought.

“In this regard, the public should avoid open burning and limit outdoor activities, especially when temperatures reach unusually high levels,” he added.

On the state’s economic performance, Hajiji said the State Government has begun exploring the potential of the Blue Economy as a key strategic driver under SMJ 2.0, leveraging Sabah’s maritime strengths and rich biodiversity.

“This includes the development of marine biotechnology, smart fisheries, modern mariculture, logistics and sustainable tourism, as well as the utilisation of rivers as economic lifelines for rural communities,” he said.

The initiative also encompasses the protection of coastal areas, mangroves and coral reefs, alongside the development of blue carbon to support higher value-added economic growth.

“The development of the Blue Economy, particularly in the fisheries and aquaculture sectors, is expected to generate marine-based revenue of up to RM3.25 billion annually,” he said.

Meanwhile, he stressed that close cooperation between the State and Federal Governments will continue to be strengthened to ensure development programmes are implemented in an orderly, efficient and effective manner.

“Development projects, particularly priority initiatives such as infrastructure, healthcare, education, security and welfare, must be closely monitored to ensure smooth implementation and timely completion,” he said.

In conjunction with the Head of State’s birthday celebration, Hajiji also called on all state leaders, including civil servants and the private sector, to strengthen their resolve and commitment in driving Sabah’s progress.

“I call on all state leaders to continue serving with dedication for the prosperity of the state and the well-being of its people,” he said.