KOTA KINABALU. SABAH, MALAYSIA December 17, 2025 – The Sabah Ministry of Industry, Entrepreneurship and Transport (MINDET) will comprehensively roll out the ‘Sabah First’ agenda at the ministerial level starting in 2026, aligning with its expanded portfolio and new mandate.
Deputy Chief Minister III and MINDET Minister Datuk Ewon Benedick announced this during his winding-up speech on the Sabah 2026 State Budget at the State Legislative Assembly today.
He revealed that the state government has allocated RM105.67 million for supplies and RM88.36 million for development to MINDET in 2026, underscoring the strategic importance of industry, entrepreneurship, and transport as key pillars of Sabah’s economic growth.
Of the development allocation, RM43.53 million is earmarked for infrastructure and utilities upgrades in major industrial parks, including the Kota Kinabalu Industrial Park (KKIP), Palm Oil Industrial Cluster (POIC) Lahad Datu, and Sipitang Oil and Gas Industrial Park (SOGIP), to boost investment attractiveness.
To empower district-level economies, the Sabah Economic Development Corporation (SEDCO) will receive RM16.90 million for constructing shop houses and business premises. An additional RM5 million is set aside for the State Entrepreneurship Programme to coordinate all entrepreneurial initiatives under one ministry.
In the transport sector, RM18.19 million will go to the Sabah Railway Department (JKNS) to maintain competitive rail services, while RM4.75 million is allocated to the Sabah Ports and Docks Department (JPDS) to strengthen port infrastructure as an economic growth catalyst.
Ewon expressed gratitude to the federal government for granting RM145.78 million through the Ministry of Investment, Trade and Industry (MITI), including RM37.40 million specifically for 2026 industrial park developments.
He said integrated state-federal efforts would enhance Sabah’s economic competitiveness, create more jobs, and improve people’s welfare.
Highlighting progress, Ewon noted that Sabah recorded RM7.54 billion in manufacturing sector investments up to the third quarter of 2025, ranking the state sixth highest nationally.
Under the ‘Sabah First’ agenda, MINDET will prioritise attracting high-impact investments, empowering local industries, and ensuring preferential involvement and workforce development for Sabahans.
The ministry will collaborate with the Malaysian Investment Development Authority (MIDA) on international investment missions and integrated branding to position Sabah as a prime investment destination, focusing on renewable energy, blue economy, biomass, and food processing sectors from 2026.
On agency directions, SEDCO will continue driving socio-economic development, with four ongoing projects expected to complete in 2026 in areas like Pulau Bum-Bum, Matunggong, Weston, and Beaufort, plus new projects in Sook and Kinabatangan. It will also intensify entrepreneurship training, including graduate and technical schemes, and the Tunas Niaga programme involving 40 secondary schools.
KKIP will be further strengthened as a strategic state industrial park, alongside phased development of the Kota Belud Industrial Park (KBIP).
For POIC Lahad Datu, emphasis will be on the Sabah Palm Oil Biomass Industry Policy, a biomass collection platform, and realising a proposed Free Zone with federal policy approval.
The Sabah Oil and Gas Development Corporation (SOGDC) will coordinate investments in SOGIP, accelerate construction phases, conduct port and Free Economic Zone studies, and plan the SOGIP Port to bolster maritime and logistics services.
Invest Sabah Berhad will prepare the Sabah Investment Plan 2030 (SIP 2030) as input for the Sabah Maju Jaya 2.0 roadmap, while the Sabah Trade and Tourism Office in Singapore (STTOS) will attract investments and expand Sabah product markets.
In transport and ports, agencies like the Sabah Ports Authority, JPDS, and JKNS will be empowered to support economic growth through enhanced port capacity, facility upgrades, rail projects, and studies on rail-based public transport systems.
“All these initiatives form part of the ‘Sabah First’ agenda implementation in this ministry to build an inclusive, resilient economic ecosystem that directly benefits Sabahans,” Ewon concluded.
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