Strong Industrial Ecosystem Key to Sabah’s Economic Future

7 December 2025

KOTA KINABALU: Minister of Industry, Entrepreneur and Transport, Datuk Ewon Benedick, reaffirmed the State Government’s commitment to strengthening Sabah’s industrial landscape, entrepreneurship ecosystem and logistics connectivity to drive long-term economic growth.

Speaking at the 42nd FSI Nite organised by the Federation of Sabah Industries (FSI), Ewon who is also the Deputy Chief Minister III expressed his appreciation to FSI for more than four decades of service as the voice and backbone of the state’s industrial community.

The organisation currently represents over 200 manufacturers and service providers across key sectors such as food and beverage, building materials, oil and gas, logistics, furniture and textiles.

“This evening is not only a celebration of your achievements, but also a celebration of the partnership between government and industry,” he said, extending his congratulations and gratitude to entrepreneurs, industry representatives, NGOs, and members of the business community.

Ewon emphasised that his Ministry remains steadfast in advancing Sabah’s industrial and entrepreneurship sectors as pillars of the state’s economic transformation under the Sabah Maju Jaya (SMJ) Development Plan.

He noted that the recent rebranding of the Ministry , now expanded to include the Transport portfolio, is both strategic and necessary.

“Transportation and connectivity are essential enablers of Sabah’s industrialisation and entrepreneurship agenda,” he said.

“Strengthening logistics, whether through roads, ports, airports or multimodal links, is fundamental to creating a business environment that truly supports SMEs and industrial investors.”

Outlining his Sabah First vision, Ewon said the Government aims to build an ecosystem where local companies can grow, compete and succeed.

This vision includes creating an investor-friendly and entrepreneur-friendly environment, especially for Micro, Small and Medium Enterprises (MSMEs).

Enhancing product and service quality to meet domestic and international standards, unlocking opportunities across global markets.

Improving service delivery across government agencies under the principle of “we must facilitate, not frustrate.”

“This aspiration strengthens the foundation of our ecosystem by expanding entrepreneurship and investment opportunities that generate more jobs for Sabahans and drive inclusive, talent-based growth,” he added.

Sabah’s Strong Trade and Investment Performance Ewon highlighted Sabah’s strong trade trajectory, reporting total trade of RM107.8 billion in 2024, the third consecutive year the state surpassed the RM100 billion mark.

He credited this performance to the hard work of local manufacturers, SMEs and entrepreneurs.

Sabah also recorded RM7.5 billion in approved manufacturing investment, contributing to a total of RM11.9 billion across all sectors.

“These figures represent new factories, expanding supply chains and new employment opportunities that fuel business development,” he said.

According to Ewon, Sabah has made significant progress in expanding international market presence. In 2025, 115 companies and entrepreneurs participated in 18 international expos, generating RM95.9 million in potential sales, a 58.8% increase from 2024.

“This reflects the rising competitiveness of Sabah’s homegrown products and the effectiveness of our ongoing market access and export development initiatives,” he said.

With investment inflows continuing to grow, Ewon encouraged FSI to enhance its capacity and capability to capture new business opportunities and play a more prominent role in supporting Sabah’s expanding industrial ecosystem.

By strengthening expertise, upgrading operations and engaging more actively with investors, he said FSI can help accelerate industrial growth and create more quality jobs for Sabahans.

“As we celebrate the 42nd FSI Nite tonight, let us look forward with renewed responsibility and commitment,” Ewon said.

“Let us work together to build an industrial ecosystem that is competitive, inclusive and sustainable, one that creates quality jobs, supports dignified incomes for families and strengthens state revenues for reinvestment in education, infrastructure and social development.”

“I look forward to continuing our work together in advancing Sabah’s industrial development and strengthening our economic future,” he said.