Hajiji: Sabah records strongest economic growth in six years

Chief Minister Datuk Hajiji Noor during an interview at his office in Kota Kinabalu, Sabah on September 14, 2021. — Bernama pic

By Julia Chan

First Published: Wednesday, 14 Oct 2026 2:43 PM MYT

KOTA KINABALU, Oct 14 — Sabah’s economy grew by 5.1 per cent last year, its strongest performance in six years, with gross domestic product (GDP) reaching RM88.8 billion, said Chief Minister Datuk Seri Hajiji Noor.

He said the growth was supported by the services sector, which expanded by 4.5 per cent, manufacturing (five per cent) and construction (28.3 per cent).

“Sabah has momentum. Our task now is to turn it into stronger local businesses, higher-value industries, better jobs and opportunities for communities across the state,” he said during his speech at the Sabah edition of Borneo 2026, which was delivered by Deputy Chief Minister II Datuk Seri Masidi Manjun.

Hajiji said the state’s record development ceiling of RM12.02 billion under the 13th Malaysia Plan, covering 933 new projects and 240 extension projects, would further strengthen Sabah’s competitiveness and attractiveness to investors.

Hajiji reiterated that Sabah has significant economic potential in agriculture, the Blue Economy and downstream industries, supported by its natural resources, biodiversity and strategic location.

The Blue Economy also offered considerable opportunities in modern fisheries, marine biotechnology and nature-based tourism, he said, adding that under SMJ 2.0, the sector had the potential to generate up to RM3.25 billion in additional income annually.

At a separate event, Hajiji said Sabah wanted to capture more economic value from its oil and gas resources by moving beyond exploration and production to downstream activities, technology, investment and the development of skilled local manpower.

He said the industry’s growth should create wider economic benefits for the state and its people, particularly by enabling Sabah-based companies and vendors to move beyond support services into higher-value activities requiring stronger technical, management and financial capabilities.

Hajiji said Petronas had an important role, alongside the state government, in creating opportunities for local companies to participate in larger segments of the industry’s value chain.

He said this during the signing ceremony of the land lease agreements for the Sabah Oil and Gas Terminal (SOGT) and Sabah-Sarawak Gas Pipeline (SSGP) projects between the Sabah Economic Development Corporation (SEDCO) and Petronas.

He also said the terminal (SOGT) and pipeline (SSGP) should be viewed not merely as operational infrastructure but as potential catalysts for further industrial and economic development, particularly along the Kimanis-Sipitang corridor.

He said the strategic location of these facilities could support further investment and industrial activities, adding that existing infrastructure should be leveraged to meet current needs while opening up future economic opportunities.

He said the land lease agreements signed between SEDCO and Petronas would provide greater certainty for the use of state land while safeguarding the state’s commercial interests. He expressed hope that the collaboration would evolve into a broader strategic partnership delivering lasting economic benefits to Sabah.