Nestled in probably one of the most strategic geographic location amongst all other states in Malaysia, Sabah is a state that is blessed. Surrounded on the north by the Philippines, China, Taiwan, Korea and Japan, on her east by Vietnam, Brunei and Malaysia, on her west and south by Indonesia… and miraculously, and perhaps even enviably, she is not land locked, but blessed by oceans that surround her, yet protected by typhoons and coastal catastrophes because she is “The Land Beneath The Winds”.
The magnificent Mount Kinabalu, a UNESCO World Heritage Site, and Malaysia’s tallest mountain, and the highest mountain in Southeast Asia outside the Himalayan and Oceania ranges.
Local Kadazandusun mythology claims the universe was created by deities Kinoingan and his wife, Suminundu, and it was Suminundu who created Mount Kinabalu, the heart of the world, as a gift to her husband. Another legend says a giant king called Gayo Nakan, buried himself there. His face and shoulders sticking out are today’s Mount Kinabalu.
The morning sunlight striking the peak forms a golden ring that looks like either a golden dragon, or in combination of the peaks and gold, looks like the Sigah, the traditional Kadazandusun headgear, which is folded to emulate the very shape of Mount Kinabalu.
The golden dragon imagery leads to another legend – that there was once a golden dragon guarding precious and magical jewels at the summit of the mountain. Many Chinese soldiers tried their luck to seize the jewels, but they failed and perished, leaving their wives as widows; thus Kina (Chinese) Balu (Widow).
Mother Nature has also blessed her with one of the world’s top diving spots in Sipadan and one of the most iconic mountains in the world, Mount Kinabalu in Ranau, the world’s largest orangutan conservatory in Sepilok and 3 UNESCO Heritage Sites – the Kinabalu GeoPark, the Poring Hot Springs and Mount Kinabalu. Sabah returns the blessings to Mother Nature by always ensuring that more than 50 percent of her land will always be under natural forest cover.
Her riches are manifold – from the earth, minerals such as gold, copper, silica, palm oil, cacao, and multiple energy resources such as crude petroleum, gas, hydroelectricity, coal, and moving on to renewables that align with the geography. Her oceans benevolently give her an abundance of some of the most sought after seafood delicacies, and thermal energy whilst maintaining pristine and untouched coral reefs. Treasures that span a vast abundance from “Mountain High, Ocean Deep” as Joniston Bangkuai, Chairman of the Sabah Tourism Board is fond of saying.
Sabah seems handpicked by Mother Nature to be given everything a piece of land could desire. One of the richest states in the country and one of the richest lands in the region, the people of Sabah unfortunately, have been left behind in terms of infrastructure amenities and a fluid supply of power due to a legacy of inherited and unsolved issues.
Over the last few years however, The Land Beneath The Wind is feeling those winds of change in all the right places and in all the right ways.
International Business Review took a trip to Sabah to meet the man and his team who have been instrumental in the change. We met an extremely focused, committed and driven group of individuals, all patriotic Sabahans, passionate about bringing the best of what they can do for Sabah, and her people.
It all stems from a visionary leadership that walks the talk. From the man who says again and again, “No one should be left behind. Everyone is important.”
Menara Kinabalu is the Sabah State Administrative Centre in Likas. The 33-storey, 182 meter tall building is the second tallest building in Borneo, after the Jesselton Twin Towers Nearby. This regal building stands tall next to a beautiful lake, and exudes undeniable majesty and power, a symbol of Sabah Rising.
Enter the soft spoken, kindly and well meaning Chief Minister of Sabah, Datuk Seri Panglima (a honorific title) Hajiji Noor, who cuts a modest figure in a neat grey suit as we meet him in his office in Menara Kinabalu, Sabah.
What strikes you first is his approachability. He is warm and engaging and he was very forthright with his answers. There is no checking of figures, no references to an assistant, it is just him and his passion to raise Sabah up to her highest potential. This is a man who knows what he is doing, is structured and organised, and very vital to any success, is humble enough to admit he may not know everything, but is keen to listen to understand from experts and then gets the right people to do the right job.
The Journey of A Chief Minister
Speaking to many rakyat Sabah (citizens of Sabah) before our interview, the general consensus is that they have faith in Hajiji because he has always been a simple man from simple backgrounds and as such, they believe he feels for them, and understands their pain and frustrations.
He was a working man just like them, working in multiple places wearing multiple hats: he has worked in a national broadcast company, as an assistant developer, as a customs officer, and eventually ventured into politics to see how he could serve the people better.
“The then president of USNO, the late Datu Mustapha, had invited me to stand for election for the constituency of Sulaman,” he shares. “At that point, I wondered, would it be worth it? You have to understand that USNO was the opposition party in 1990, and furthermore, I wasn’t very experienced in politics. I remember thinking, was there even a chance for USNO to win, and for me to serve the people?”
Well the young man won his first seat, entered the wonderland of politics and learnt firsthand what they say that “with great power comes great responsibility”. The rest is history.
People First. Always
It is a gargantuan task to navigate a path forward that would be equitably balanced and favourable to all. It’s a task he is fully aware of and his policy has been to ‘just work hard and get the job done’.
“It’s not productive to sling accusations and be critical of past policies,” he states firmly. “I am here to do the best for my people and my country, not do unnecessary politicking.”
“We have systems, and we all have to work with them, not go against them to little result,” he adds. “It is thanks to my predecessors I have a foundation to work with, in knowing what roadblocks I can expect as I take up this mantle.”
Rallying the people towards making Sabah better for everyone is one of the key foci of Hajiji’s overarching vision. He has put forward slogans that he considers guide posts not just for the people, but also as the foundation of policy making. Well aware they can easily be considered as empty platitudes, he explains the rationale behind them and the initiatives he’s taking to ensure they become reality.
Bajau horsemen and Dusun men are part of the 33 indigenous groups that communicate in over 50 languages and 80 ethnic dialects. The Kadazan-Dusun is the largest ethnic group in Sabah that makes up almost 30% of the population.
Aku Janji (I Promise)
This state government has four Aku Janji premises that are at the heart of everything the government of Sabah hopes to achieve for Sabahans.
The first premise revolves around the MA63 agreement that brought Sabah, Sarawak and Malaya together to be one as Malaysia. But there were conditions agreed between Sabah’s leaders and those who put MA63 together – and the three parties were to come together as equal partners in the new Malaysia, with these conditions met. Not all were met. And so the Chief Minister, the quintessential diplomat, is negotiating for that with the Federal government through proper channels. “In championing for my people, I am not asking for the rights of others, but just what is due to us, and for Sabah. Not more, not less.”
Situated in the third largest island in the world, Sabah’s Sipadan off the east coast, is a diver’s paradise. Sipadan is the only volcanic island in Malaysia, plunging 2,000 meters straight to the sea floor, and over thousands of years, living corals have grown on top of an extinct volcano. This is one of the best places to see green and hawksbill sea turtles, barracudas, sharks, manta rays, giant clams, nudibranchs and an incredible variety of fishes including schools of jacks, trevallies, and fusiliers.
On the second promise, he explains “Our people have expectations of their leaders. As such, leaders must have the integrity not to abuse our position and power, and live up to that expectation of our citizens. We have to do what it takes to make people love us. Not hate us, or fear us. Our responsibility as leaders is to focus on unifying, not creating division, and eradicating poverty where poverty exists,” he explains.
He adds that to achieve the 3rd promise, all he did was to set a structure in place, and clear directions on how to achieve it. He chose agriculture, industry and tourism as three core sectors to focus on, sectors that will accelerate the prosperity of the people by job creation for many, while prospering the nation.
The last promise is on being One Sabah For All.
“We have more than 30 ethnic groups in Sabah and even before independance we have never differentiated ourselves through race or religion. In fact, we have embraced our diversity and have lived in harmony and peace. It is the same now, and will continue to be so. This is non-negotiable for me. We may have differences in politics but we are one people. My wife’s relatives are Christian, and I am Muslim, but it just adds to the colouring of who we are as Sabahans,” he says.
Sabah Maju Jaya
The Sabah Maju Jaya tagline has come to be identified as the current government’s tagline.
The Chief Minister explains however that it was always there, in their coat of arms. It was just never brought out and owned, as something to be proud about.
“When I took over in 2020, there were many challenges, a lot of uncertainty due to political instability and the Covid pandemic. We needed something strong to unify us and bring us together, to rally under one banner. We needed a strong sense of direction. I looked around me and saw that every other state has a slogan. For example, Sarawak has her tagline, Sarawak Maju Dan Makmur. But Sabah did not have a slogan, nor a sense of direction at that time. I asked myself why don’t we give confidence to our people, give them hope and make them believe in themselves again. Let them want progress and be part of that progress.”
So we gave new meaning for an old tagline. Sabah Maju Jaya became a blueprint for all our future successes.
Waterfalls like the Madai Waterfall in Kunak, and water sports like surfing in Karambunai and white water rafting in Kiulu are just the tip of the iceberg for amazing water adventures that range from island getaways to river cruises.
A Whitehead’s Trogon. Sabah has 664 species of resident and migratory birds, and 51 of them are endemic to Sabah. The best places for birdwatching are Rainforest Discovery Centre in Sandakan with 26 endemic species; Kinabalu Park, a UNESCO Heritage Site, that has 17 endemic species; Tabin Wildlife Reserve in Lahad Datu has all 8 species of the Hornbill; Crocker Range Park in Keningau that has the world’s smallest raptor, the White-Fronted Falconet; the Rafflesia Information Centre in Tambunan; Kliu Wetlands in Beaufort, and Tawau Hills Park.
Photo by Azahari Reyes @ Jason
Retaining Sabah’s Oil Rights
Hajiji is a born diplomat and he has certainly shown himself to be an exceptional negotiator over the course of his tenure. With 11 trillion cubic feet (tcf) of gas and 1.5 billion barrels of oil in its reserves, representing about 12 percent and 25 percent of Malaysia’s gas and oil reserves, oil and gas makes up a significant amount of Sabah’s economic potential.
“How does Sabah negotiate with Petronas to get our share of oil and drilling rights? Why was not enough done about this before my time? This was playing in my mind. So I called the brightest and best of Sabahans with the most experience in this industry to me who could help me. Datuk Seri Lim Haw Kuang, an ex Shell Executive Chairman and a Sabahan who was living in Beijing was asked to help me strategise. He was kind enough to come back to help us and we formulated a new plan to negotiate with PETRONAS.”
From then on, the negotiations went back and forth until the GRS government, under Hajiji Noor, signed the historic CCA (Commercial Cooperation Agreement) with PETRONAS in 2022, which requires external companies operating in Sabah to have a local partner.
“We have secured about RM3 billion from PETRONAS since. The 5 percent sales tax from PETRONAS was a big win for us. We also got a lot more: an equity of 50 percent from the Kababangan oil and gas fields, 25% equity from SAMUR (Sabah Ammonia Urea) and 25% equity from ZLNG in Sipitang, and more.”
His skill in diplomacy shines through in yet another dealing with the Federal Government, regarding the grants to the state as mandated in the Federal Constitution. “We are always empathetic to Federal Government’s position, Hajiji reiterates. “We are still in talks, and we are successful because we can meet each other halfway. That is effective communication.”
Still, there has to be a certain magic that he employs in navigating such long-standing issues. For one, the provided grants were initially a mere RM 26 million, a stark contrast to the RM 600 million special grant Sabah is to receive next year following their latest round of negotiations.
The Rejection of the Territorial Sea Act 2012
Sabah’s border rights are enshrined under the North Borneo (Alternation of Boundaries) Order in Council 1954 which covers the continental shelf. On June 22, 2012, Sarawak and Sabah lost their sovereign rights and jurisdiction over the area of the Continental Shelf, consisting of the seabed and its subsoil beneath the high seas, when the current Territorial Sea Act 2012, came into effect. This act limits Sabah’s jurisdictions to merely three nautical miles (5.5 km) compared to the original 200 nautical miles from the coastline.
The Territorial Sea Act 2012, a law passed by Parliament in 2012 under influence of The United Nations’ Act severely limits the state’s capabilities to oversee or utilise its own waters as it sees fit. “It’s impossible for us to enforce laws, much less conduct any other maritime activities,” Hajiji points out. “I have been working to get the North Borneo Order of 1954 honoured, which promised Sabah 200 nautical miles. That’s all we’re asking for, not more, not less.”
Paving the Roads to Success
Now that Sabah’s finances look to be secured, where does the state go from here? This is where Wawasan Kemakmuran Bersama (WKB) 2030 would ostensibly come in.
Hajiji has established programmes geared towards developing SMEs and the entrepreneurship landscape in Sabah, encouraging generations of future leaders to continue building Sabah and creating wealth from ground up.
These include the Sabah Entrepreneur Empowerment programme, Tunas Niaga Programme, SME-UP Assistance Programme and Youth Entrepreneur Success schemes, that have since gone on to kickstart 5,000 SMEs and assisted 2,500 young entrepreneurs. “While I have identified three core industries of focus, I believe in providing opportunities for new and emerging ones, more so amongst SMEs and especially young entrepreneurs,” he explains.
“Think about it this way. Our Sabahan youth study hard and earn qualifications here. Then, where do they go? They often seek better prospects in Peninsular Malaysia, because they can’t find any opportunities here in their hometown. There is another massive brain drain to overseas countries! So, I want to provide an ecosystem right here that makes them excited to stay in Sabah and build her to be the powerhouse she can be,” he continues.
“I’m happy to say that we have young Sabahan entrepreneurs who have accepted my invitation for us to develop Sabah’s industries together, and form an association. With government support, they have the resources to outreach to their fellow businessmen. I very much believe it is important to engage with them productively to bring our collective vision to life.”
The youth will be the key to the future, as he puts it. He sees a future where they would be proud to call Sabah their birthplace, one that they helped build thanks to the efforts of both their fellow peers and the government systems that set them up for success. It’s easy to imagine the domino effect of vibrant youth, diverse talent pool and bustling state that could be highly attractive for multinational corporations seeking expansion. In fact, Hajiji has done his fair share of courting investors already, and because of his fair and friendly policies, the world is beginning to come into Sabah to build her to her strongest, together with Sabahans.
Sabah Maju Jaya is now becoming the anchor foundation of the birth of a new Sabah. All that the Chief Minister with investor friendly policies had to do was to give a sense of direction and a unifying clarion call for his people to believe in themselves and this slice of paradise they call home. And sometimes, that is all one needs.
Camping under the stars in Sabah’s clear skies, and watching a Buffalo race in Tamu Besar, Kota Belud. Such unique offerings, only in Sabah.
Sabah for the World
There is much to look forward to in the years to come. “Getting investors in is the way forward,” he says, matter-of-factly. While the local industries incubate and develop, MNCs provide a boost and foothold into the global supply chain. The investor-friendly policies are likened to partnerships: investors obtain support in facilities, provision of land and other incentives, which are repaid to the state in the form of equities and employment for the people. “Our various industrial parks are filling up and thriving. We have investors from Singapore, Europe, Korea and China. I have had ambassadors from over 30 countries express interest as well, so it will only get busier from here.”
When you see how Sabah’s revenue hit almost RM 7 billion in revenue in 2023 for three consecutive years of high revenue, that day would come sooner than later. It’s such a formidable testament to the acute business sense and welcoming incentives of the current GRS government under Hajiji’s leadership and investors are excited enough to look at Sabah as a regional hub for their manufacturing and service needs.
Upping The Game For The Energy & Water Supply
Now that investors have committed, and more are coming in, Sabah has to rise to the challenge in supplying the resources needed to run the industries flawlessly, most crucially, water and power and to provide adequate infrastructure for movement of goods. A number of these issues are certainly inherited problems, for which allocations have already been duly set aside to rectify.
“I humbly ask for your patience as we make things right,” Hajiji says. “We can make up for the lack of progress exacerbated by the COVID-19 lockdown, given time.”
The Sabah Energy Roadmap and Master Plan 2040 (SE-RAMP 2040) looks to put the power supply troubles to bed. “We are already expecting 700MW to be generated in the next 1-2 years to meet the initial needs. We also have hydropower, wind turbines, solar and Ocean Thermal Energy Conversion (OTEC) to further supplement the supply as we work with power providers for long term concessions.”
He has pegged hydropower as one of the keys to solving the power issues, which would simultaneously ease the pressure on water supply. The Ulu Padas project is set to complete in 2029, with a projected generation capability of 187.5MW and release up to 6,000 million litres of water. Should Sabah be able to fully develop its green energy sector, the state has the potential to provide up to 75 percent of the nation’s green energy supply.
“I want the sweetness of independence and the prosperity that follows to be experienced by everyone. From the deepest of our rural areas and kampungs, to the rivers and seas where our fisherman make their living, to our city folks and their daily bustle of life, to our sprawling farms tended so lovingly by our farmers, to our mountain tribes and our natives in the jungles. Sabah is all of them.”
Even as this is being done, the state government’s focus is to fix the rampant water shortages immediately, a legacy of bad management practices of past governments. It is a long time coming, as this has been a focal point of discontent for many years, for both investors and Sabahans. State Finance Minister, Datuk Seri (honorific title) Masidi Manjun said that RM679.85 million has been allocated under the state’s proposed Budget 2024 to address this. Out of this, the Sabah State Water Supply Programme, funded by the state government, is allocating RM156.77 million to implement immediate and short-term measures.
While fixing problems internally, replacing aging pipes, overcoming water theft and finding bold solutions, the aforementioned Ulu Padas project will make up the bulk of the solution. Current demand is about 1,600 million litres of water per day, so 6,000 million litres per day is a huge jump and cause for celebration for Sabahans.
Ocean Thermal Energy Conversion (OTEC)
“I am exploring how much more we can utilise the Blue Economy that Sabah has to offer. Besides the treasures of the sea that we harvest, we can also harvest energy from the ocean.
Ocean Thermal Energy Conversion is a renewable energy technology that harnesses the temperature difference between the warm surface waters of the ocean and the cold depths to run a heat engine to produce electricity.
The unbelievably white sands of Maiga Island in Semporna, lined by cononut trees on its shores, takes you to a land before modernity. The pristine beaches offer snorkelling off its waters, and you can mingle with the Bajau (Sea Gypsies) community, who rely almost exclusively on fishing for survival.
OTEC is fuel free, has a low environmental impact, can supply pure water for both drinking and agriculture, can supply refrigeration and cooling and can provide a coastal community with reliable energy. However, it is an economically expensive energy to produce.
OTEC is an especially enticing venture with Sabah’s oceans yet to be fully tapped into. The oceans provide a magnificent potential of blue economy that is still untouched, with Sabah having 75 percent or more of Ocean Thermal Energy reservoir that Malaysia has.
“According to consultants, we can produce 20,000 Megawatts from just 20 kilometres off the shores of Tawau and Semporna; therefore the Sabah state government is looking to collaborate with investors to harvest this energy.
Hajiji reveals how investors from China are especially eager for Sabah’s Blue Economy potential. “There is a golden opportunity for Sabah to have a strong foothold in generating green energy, which can solve a lot of our power problems in one fell swoop. Soon enough, we’ll be able to even supply power to our neighbours, like Kalimantan, for even more economic contribution.”
The Federal Government is also now giving Sabah the autonomy to provide licences for maritime activities, like that of deep sea fishing, a bid to develop its blue economy, where it can harness the full potential of its waters, above and beyond OTEC.
Upping The Game For Connectivity
The 2083 km long Pan-Borneo Highway, the longest highway in Malaysia, once completed, will be an incredible game changer for Sabah.
It is an expressway that connects Sabah, Sarawak, and Brunei in Phase 1. In Phase 2 it will connect the internal roads of Sabah with the main expressway and in Phase 3 will be connecting the expressway to neighbouring Indonesia.
The Pan-Borneo Highway promises to revolutionise East Malaysia connectivity and bring unprecedented growth to underdeveloped areas, according to Naim Gamuda, who have been appointed to complete the project.
Prior to the Hajiji government’s leadership, there had been many delays and stoppage of work on the Pan-Borneo Highway. The pandemic exacerbated the situation. The Chief Minister assures Sabahans and investors that together with the Federal Government, work is on a “full speed ahead acceleration”.
All this connectivity will be key to further sweeten prospects not just for investors, but also for tourism. 2023 saw a total of 1.2 million tourist arrivals, and RM 2.45 billion in receipts, a 69.1% increase from 2022.
Who can resist the beaches, jungles, and of course, the incredibly unique culture one finds in Sabah? Efforts have been made to develop homestays to further capitalise on the charm of Sabah. That’s all on top of Sabah’s Ministry of Tourism promoting the state almost every month to attract even more visitors.
A strong connectivity opens up the possibility to tourism in the heart of Sabah, where her ethnic charm and untouched natural splendour would be perfectly conducive to eco-tourism.
Sabah is on the fast track to becoming a rising star in Southeast Asia in its own right, under the very focused leadership of Hajiji. The Chief Minister harbours a humble wish: to have his people truly be able to enjoy the fruits of their labour. He has set that as his main goal, and everything else is being done to work towards that end objective. It is not an easy task, to bring progress, modernisation, ease of living and prosperity while maintaining the pristine beauty and natural reserves of its oceans, forests, flora and fauna. It requires a certain kind of person who can manage diplomacy with all quarters, while working very hard and systematically behind the scenes to put in foundations for growth in every sector.
“I only ask for what is fair, and I ask that no one is left behind. Sabah Maju Jaya is not a mere slogan, it is the spirit of Sabah. It is a manifestation of all we can be, and will be.” – YAB Datuk Seri Panglima Haji Hajiji bin Haji NoorSabah has found that person. Finally.
