MITI refines Sabah’s high-tech investment proposals to ensure state participates in global supply chain, not just assembly work
KOTA KINABALU: The government is refining several high-tech investment proposals for Sabah to ensure the state doesn’t become merely an assembly hub.
Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said Sabah’s semiconductor network proximity to other countries gives it supply chain advantages.
“We have to be careful to admit the right sectors, we don’t want sectors that only do installation, there is no value added,” he told reporters at a programme for the Api-Api state seat candidate.
He emphasized the importance of focusing on specific sectors and technologies rather than outdated or “sunset” industries.
The government aims to increase economic complexity in manufacturing development plans.
“We want to increase economic complexity because this will upgrade the people’s living standards in terms of salaries,” he said.
This approach would also stimulate the local SME ecosystem and provide wider economic spillover effects.
Regarding increased investments from China and South Korea, he said this shouldn’t be viewed as dependence on specific countries.
Sabah serves as a strategic destination for China Plus One strategies in terms of exports.
The state maintains a trade surplus, highlighting its importance as an export destination.
On November 8, Tengku Zafrul announced Sabah recorded RM11.37 billion in approved investments for the first half of this year.
These investments across manufacturing, services and primary sectors have created 7,892 job opportunities since 2022.
The achievement reflects investor confidence in Sabah under the New Industrial Master Plan 2030.
The plan targets Sabah as a downstream manufacturing and renewable energy hub. – Bernama
