SEDCO and Subsidiaries urged to Drive Stronger Revenue for Sabah

4 December 2025

KOTA KINABALU: SEDCO and its subsidiaries must enhance their contribution to state revenue through more consistent and competitive dividend returns

Deputy Chief Minister III and Sabah Minister of Industry, Entrepreneurship and Transport, Datuk Ewon Benedick said SEDCO plays a vital role in the state’s entrepreneurial development and investment landscape.

“SEDCO has many subsidiaries, each mandated with specific responsibilities. One of the government’s key expectations is that these subsidiaries will contribute back to the Sabah State Government in the form of dividends."

“I appreciate all the efforts undertaken to date. However, I also hope that SEDCO and its subsidiaries will strive for greater achievements so that dividend contributions can be further increased."

“These dividends are crucial for funding development in Sabah, whether channelled back to this ministry or used for other initiatives such as poverty eradication, education, public welfare and more,” he said.

Ewon spoke to reporters after making his first official visit and receiving a briefing on SEDCO at Wisma SEDCO today.

On state–federal cooperation, he said existing coordination platforms, particularly the Entrepreneur Development Coordination Committee, must be optimised to ensure Sabah’s budget requests and development needs receive due consideration in the Federal Budget.

Ewon added that his main focus beginning in 2027 is to ensure more Sabahans enjoy stable incomes through entrepreneurship and a more vibrant job market.

“From 2027 onwards, the ministry’s major focus is to support more Sabahans in securing stable incomes, whether through entrepreneurship or employment with locally owned businesses."

“I do not want Sabah to continue being associated with the nation’s poorest districts or widespread poverty. Entrepreneurial development is one of the key pathways to provide job opportunities and income for the people, graduates and youth,” he said.

He added that with proper implementation of planned initiatives, Sabah will be able to raise household incomes over the next five years and shed the stigma of being the country’s poorest state.

Ewon also noted that the state budget to be tabled on 12 December is expected to maintain its existing planning framework, as preparations were undertaken before the formation of the new Cabinet.

However, beginning in 2027, the ministry will introduce a new agenda requiring larger budget allocations.

As such, he stressed that ministries and agencies must demonstrate strong performance.

“Looking at the needs of SEDCO, KKIP, POIC and SOGDC, once these entities are able to return dividends to the government, the ministry will have a solid basis to request larger allocations for investment, entrepreneurship programmes and, now, transport initiatives."

“I would also like to see more effective cooperation and coordination with the Federal Government to strengthen the transport portfolio and ensure its holistic implementation for the benefit of Sabahans,” he said.

He reiterated the importance of agencies such as SEDCO, KKIP, POIC and SOGDC increasing their dividend contributions to provide the ministry with the foundation needed to seek larger funding for investment, entrepreneurial and transport initiatives.

Ewon further emphasised that strengthened coordination with the Federal Government will ensure the state’s transport portfolio is effectively executed for the benefit of the people.