Sabah’s RM58 Billion Investment Boom: Key Opportunities for Property and Business Growth
Sabah is fast becoming a major magnet for both foreign and domestic investors, with a remarkable RM58.319 billion in total investments secured or in progress since 2020. This surge positions the state as a rising economic hub in East Malaysia — and the implications for property investors, industrial developers, and SMEs are significant.
According to Datuk Thomas Logijin, Permanent Secretary of the Ministry of Industrial Development and Entrepreneurship (MIDE), the state has already secured RM17.41 billion in approved manufacturing sector investments since September 2020. Out of the 73 approved projects, 52 are already operational, involving RM7.8 billion in realised investments and generating 3,636 job opportunities.
Over RM42 Billion in New Proposals: Industrial Parks Leading the Charge
Sabah is currently finalising new investment proposals worth RM42.3 billion, expected to create nearly 33,000 new jobs. A significant contributor is Esteel Enterprise Sabah Sdn Bhd, with a proposed RM19.6 billion investment in the Sipitang Oil and Gas Industrial Park (SOGIP). Esteel has already received its Federal Manufacturing License (FML) in January 2025 for Phase 1 of its RM5.77 billion development.
Other notable investors include:
- Curix Sdn Bhd (Kota Kinabalu Industrial Park, KKIP)
- Kibing Group’s third glass production line (KKIP)
- Tex Evolusi Waste Management (SOGIP)
- E Concern (Borneo) Sdn Bhd (SOGIP)
MIDE is also reviewing fresh proposals from major players like PMB Technology / Press Metal in Sipitang, Kibing Group in Kimanis, and TS Asia Green Infrastructure in POIC Lahad Datu.
The Property Angle: Sabah’s Industrial Parks and Real Estate Opportunities
For real estate investors, Sabah’s growth narrative is highly attractive. Industrial investments of this magnitude typically drive demand for housing, commercial real estate, and logistics hubs near project sites like Sipitang, KKIP, Kimanis, and POIC Lahad Datu.
The state government has also proposed three new industrial parks in Kudat, Beaufort, and Kota Belud — all of which are expected to further stimulate local economic activity and open up opportunities for land acquisition, mixed-use developments, and rental income from workforce housing.
Empowering SMEs: Local Growth and Export Exposure
Sabah’s development strategy is not just focused on mega projects. Small and Medium Enterprises (SMEs) are also being empowered through targeted programmes and market exposure.
Datuk Thomas Logijin shared that there are 8,031 SMEs registered with MIDE’s Department of Industrial Development and Research (DIDR). In 2025, the ministry will host four SME Carnivals in Tawau, Tuaran, Kudat, and Keningau, aiming to support entrepreneurs through initiatives like:
- SME-Up training
- Entrepreneur development courses
- Buy Sabah Products campaign
- Retail partnerships with Bataras and Kedai Mesra Petronas
To boost global visibility, 87 Sabah entrepreneurs have been selected to represent the state at international trade expos, helping SMEs penetrate global markets and attract foreign buyers.
Chief Minister’s Support: Balanced Growth and Inclusive Planning
Chief Minister Datuk Seri Panglima Hajiji Noor praised MIDE’s proactive initiatives, describing the ministry as “a key driver of state revenue.” He stressed the importance of inclusive economic growth, urging that the state’s planning should benefit both large corporations and local SMEs.
He also emphasised systematic planning to ensure infrastructure readiness in tandem with incoming investments. The development of new industrial parks, alongside ongoing investments, is expected to elevate Sabah’s economic status, especially in manufacturing, logistics, renewable energy, and technology.
Conclusion: Sabah’s Transformation is Underway
With RM58.3 billion worth of confirmed and proposed investments, Sabah is clearly on the cusp of a major economic transformation. The spillover effects are already taking shape in the real estate market, job creation, and SME development.
For property developers, investors, and business owners, Sabah presents an emerging frontier with robust infrastructure, policy support, and economic momentum. Whether it’s industrial land, worker accommodations, or retail opportunities, now is the time to explore the untapped potential of East Malaysia.
