SEDIA: Catalysing Sabah’s Growth in the Post-Pandemic Landscape

Malaysia’s second-largest state, Sabah, is also the sixth-largest contributor to national
GDP, thanks to the Sabah Economic Development and Investment Authority
(SEDIA). Having helped the people and businesses in Sabah withstand the worst
effects of the pandemic, SEDIA aims to revitalise the economy in the post-COVID
period. Chief Executive, Datuk Seri Panglima Hashim Paijan, reveals more.

“2020 and 2021 was a challenging period for Sabah due to the COVID-19 pandemic. SEDIA recognised that much could be done in our capacity as the one-stop authority driving the Sabah Development Corridor (SDC) programmes to catalyse the state’s economic growth during these difficult times.

In this regard, a review of the SDC Blueprint was deemed timely to redefine the SDC direction in response to the pandemic. Dubbed SDC Blueprint 2.0, the completed revision serves as a strategic plan that charts Sabah’s development over the next 10 years (2021–2030). Five strategic thrusts were identified, through which 30 SDC initiatives will be prioritised for implementation.

To augment the strategies laid out in SDC Blueprint 2.0, SEDIA is collaborating with the World Bank Group (WBG) to establish the SEDIA Investment Promotion Unit (SEDIA IP), a dedicated unit tasked to facilitate inward investments in Sabah. In the initial stage, its focus will be on the development of agri-processing sub-sectors and supporting services.

We have also implemented the SDC-Skills and Talent Enhancement Programme (SSTEP) aimed at alleviating the impact of the COVID-19 pandemic by providing training to job seekers in skills needed in the job market. As of 30 November 2021, 61 programmes involving 426 job seekers have commenced since early this year, of which 30 programmes have already been completed.

Vying for Greater Growth

Moving forward, SEDIA will focus on improving the relevant infrastructure and the integration of land, sea, and air services to enhance logistic sector efficiency and thus, improve Sabah’s competitiveness. Among the key initiatives will be the expansion of Sapangar Bay Container Port by 2024 and the development of an integrated Air Freight Logistics and Aviation Hub. The latter would provide support for various aviation businesses and services.

Looking further inland, emphasis will be placed on trade and facilities enhancement between border towns such as those connecting Sabah with Kalimantan. Sabah hopes to capitalise on Indonesia’s decision to move its capital to Kalimantan, and SEDIA will be conducting a study that will look at the various cross-border entries as potential centres of economic development.

As the pandemic has accelerated the shift towards digital economies, staying agile and mobile by leveraging internet-based technologies and the digitalisation of information systems will be a priority for Sabah and SEDIA.

Facilitating inward investment to Sabah will be pivotal to reinvigorating the state’s economy post-pandemic, as the inflow of capital and foreign funds will stimulate domestic economic activities, create new job opportunities and facilitate the transfer of skills and technologies.

Economies globally have begun to reopen their borders and SEDIA
aims to take advantage of this by establishing trade ties and linkages
in a post-COVID-19 scenario.”