SMJ 2.0: Sabah Targets Boost in Competitiveness, Productivity and Economic Value

30 January 2026

KOTA KINABALU: The Sabah State Government has launched the Sabah Maju Jaya (SMJ) 2.0 Direction for the 2026–2030 period, aiming to significantly enhance the state’s competitiveness, productivity and economic value.

Chief Minister Datuk Seri Panglima Hajiji Noor said SMJ 2.0 is a continuation of SMJ 1.0, which focused on recovery, stabilisation and restructuring in the post-pandemic period and following the 17th Sabah State Election.

“SMJ 2.0 is not merely a development plan. It is proof of the government’s commitment to leading change in a fast-moving world driven by artificial intelligence (AI), the digital economy, cross-border trade and global competition.

“SMJ 2.0 was formulated through comprehensive engagement involving the State Cabinet, ministries, industry players, youth groups and all segments of society,” he said at the Chief Minister’s Address to the Sabah State Public Service and the launch of SMJ 2.0 at the Sabah International Convention Centre (SICC) on Friday.

Hajiji said the 2026 State Budget allocates RM12.02 billion to finance 1,173 development programmes and projects—the highest allocation in Sabah’s history aligned with the implementation of the 13th Malaysia Plan (RMK-13) and the aspirations of Malaysia MADANI.

He said the plan is also structured in line with the Sustainable Development Goals (SDGs) and Environmental, Social and Governance (ESG) principles to ensure sustainable development and social well-being.

According to him, SMJ 2.0 also upholds the commitments and manifesto of Gabungan Rakyat Sabah (GRS) during the 17th State Election, anchored on four main pillars: Sabah First, Sabah Forward, Sabah Prosper and Sabah United.

The five objectives of the plan are to build a united and harmonious society; optimise state revenue; diversify the economy; improve people’s livelihoods; and develop human capital.

The Chief Minister stressed that the plan is driven by three main thrusts: Economic Growth Sectors focusing on industrialisation, tourism and agriculture; Human Capital Development and People’s Well-being, including education, TVET, STEM, agricultural and digital training; and Infrastructure Connectivity and Green Sustainability, encompassing basic infrastructure, sustainable energy and the environment.

He said these three thrusts are supported by a focus on the Blue Economy, AI digitalisation and inclusive development, and driven by five key enablers, fiscal sustainability, financial facilitation, service effectiveness, governance with integrity and digital government.

In the industrial sector, Hajiji said Sabah has successfully attracted investments worth tens of billions of ringgit, including the RM31 billion Esteel Enterprise Sabah Sdn Bhd project at the Sabah Oil and Gas Industrial Park (SOGIP) in Sipitang, which is expected to create 10,000 high-skilled jobs and strengthen Sabah’s steel industry supply chain.

He added that the government will accelerate the development and upgrading of strategic industrial parks in KKIP, SOGIP and POIC Lahad Datu, while formulating the Kudat Industrial Master Plan for the Blue Economy.

Two new industrial parks in Kota Belud–Kota Marudu and Beaufort–Kimanis are also planned to expand regional development opportunities.

According to him, the SME-UP Initiative targets 600 small and medium enterprise (SME) entrepreneurs, including the development of a manufacturing data system and the Sabah Ready to Eat (RTE) Programme to expand market access for local products.

Hajiji said the tourism sector has shown a very encouraging recovery, with nearly 10 million tourist arrivals recorded over the past five years.

In line with Visit Malaysia Year 2026 and Visit Sabah Year 2027, he said the government is focusing on high-quality tourism, premium products, international events and global service standards, including the ASEAN Tourism Standard by 2030.

He added that the preservation of heritage, culture and the environment is being prioritised through the development of the Kinarut Cultural Centre, the Sabah State Arts Council, UNESCO World Heritage sites and the Darvel Bay Marine Park, with an allocation of RM444.69 million under RMK-13.

Hajiji said the agricultural sector remains a strategic core of SMJ 2.0, encompassing crops, livestock and fisheries, with an allocation of RM580.45 million under RMK-13.

“The rice self-sufficiency level (SSL) is targeted to increase from 30 per cent to 60 per cent by 2030 through the Paddy Revolution Programme in six districts, the provision of modern machinery worth RM15 million, and the development of the Sabah Agricultural Biotechnology Centre (SABTeC) in Tuaran.

“The livestock sub-sector aims for a 25 per cent ruminant SSL by 2030 through the Contract Farming Programme, while the fisheries sector will be driven by the Sabah Blue Economy through increased fish landings, ports and downstream value-chain development,” he said.