The Sabah State Legislative Assembly was officially dissolved on October 6. Since coming to power in 2020, Gabungan Rakyat Sabah (GRS) has faced persistent scrutiny and criticism from opposition parties and public opinion. The question of whether Sabah has indeed progressed steadily toward the “Sabah Maju Jaya” (Sabah Progress and Prosperity) development vision, as claimed by the GRS government, has become a key point of focus.
When GRS first took office, it was at the height of the pandemic. The state’s economy was in a slump, industries were badly hit, and public finances were under severe strain. The government, led by Chief Minister Datuk Seri Hajiji Noor, reacted swiftly by recalibrating its strategies and charting a clear direction for Sabah’s development under the “Sabah Maju Jaya” vision.
To rebuild economic fundamentals and strengthen the fiscal base, Hajiji’s administration actively engaged with the business sector, Chinese associations, educators, and civil society groups, initiating a series of reforms and development programs that have ushered Sabah into a new phase of growth.
- Economic Recovery and Investment Growth
Attracting both domestic and foreign investment has been a top priority in strengthening the state’s finances. Leveraging its abundant natural resources and advantages in plantation and manufacturing sectors, Sabah has aggressively promoted investment inflows.
Between 2021 and 2024, the state government successfully secured 420 investment projects worth a total of RM35.38 billion — comprising RM20.61 billion in domestic investments and RM14.77 billion in foreign investments.
According to Assistant Minister to the Chief Minister, Datuk Nizam Titingan, speaking at the State Assembly in July, investment momentum remains strong in 2025: “In the first quarter of this year alone, the state government approved RM10.9 billion in new investments, reflecting strong investor confidence in Sabah’s economic potential, particularly among domestic investors.”
Foreign investments were concentrated mainly in copper foil manufacturing, solar panels, oil and gas, and steel, while domestic investments spanned a wider range of industries.
To accommodate the growing interest, the government announced the establishment of three new industrial parks — the Kudat Blue Economy Industrial Park, the Kota Marudu-Kota Belud Integrated Industrial Park, and the Beaufort-Kimanis Integrated Industrial Park. Meanwhile, the Sipitang Oil and Gas Industrial Park (SOGIP) port has officially begun operations, marking Sabah’s newest deep-sea port facility.
Tourism continues to be a major economic driver. From 2021 to 2024, Sabah welcomed over 7.85 million visitors, generating RM16.8 billion in tourism receipts — including 5.44 million domestic and 2.4 million international visitors.
In just the first five months of 2025, Sabah recorded 1.43 million tourist arrivals and nearly RM3.3 billion in spending. The growing confidence in Sabah’s tourism market has led to a surge of high-end hotel and resort investments, creating jobs and strengthening the tourism value chain.
- Strengthening Control Over Energy and Natural Resources
To enhance Sabah’s control and revenue share in the oil and gas sector, the state government, through its investment arm SMJ Energy Sdn. Bhd., signed a Commercial Collaboration Agreement (CCA) with Petronas.
Under national laws, including the Petroleum Development Act 1974, the agreement grants Sabah greater participation and equity in several major projects, including:
- 50% equity in the Semarang Oil and Gas Field Production Sharing Contract;
- 25% in PFLNG 3 Sdn. Bhd. (the nearshore floating LNG project);
- 25% in Petronas Chemicals Fertiliser Sabah (SAMUR);
- 10% in Petronas LNG 9 Sdn. Bhd.; and
- 100% ownership of Sabah International Petroleum Sdn. Bhd. (SIP), which operates FPSO and FSO offshore production and storage facilities.
SMJ Energy also holds carried interest and buyback rights in several exploration blocks — SB409 (20%), SB403 (20%), SB306A (15%), and SB306B (15%).
- Doubling State Revenue and Record Reserves
As of 2024, Sabah recorded nearly RM7 billion in annual revenue for three consecutive years (2022–2024), almost double the RM3.59 billion in 2020.
This growth reflects prudent fiscal management and the state’s successful economic recovery, driven by improved investment, industrial activity, and higher tax and non-tax revenues.
The state’s reserves also surged from RM2.95 billion in 2020 to RM8.6 billion in 2024 — a historic high that provides a strong buffer for future infrastructure, social welfare, and development initiatives.
The GRS government’s strong performance has received international recognition. Sabah was awarded the “Most Outstanding State” title at the International Business Excellence ASEAN Awards, acknowledging its achievements in economic development, investment attraction, public service improvement, and regional influence.
- Investing in Human Capital and Workforce Readiness
Chief Minister Hajiji has repeatedly emphasized human capital development, especially in Technical and Vocational Education and Training (TVET), as a long-term investment for Sabah’s future workforce.
In September, he announced that the state government would offer free education for local students at University College Sabah Foundation (UCSF) and Sabah Foundation Technical College (KTYS), alongside a new loan subsidy scheme to ease financial burdens for over 100,000 student borrowers.
Government scholarship allocations have also reached a record RM136 million in 2024, compared to RM50 million in 2020, benefitting 4,170 students.
An additional RM77.5 million was allocated to 13 educational aid programs, including BUDI (one-off tertiary entry aid), BAIK (computer assistance), SEMESTA (Sabah Students Secretariat), GRS-SUBFLY (airfare assistance), and SENTOSA (local tertiary student aid).
The Sabah Foundation disbursed RM67.17 million in 2024 to assist 3,234 students, while the Sabah Education Fund (TPNS), launched in June 2022, has spent RM15.8 million benefiting over 10,000 recipients.
- Inclusive Policies: UEC Recognition and Increased Funding for Non-Islamic Bodies and Vernacular Schools
Hajiji recently delivered “three major announcements” for the Chinese community:
- Increased annual allocations for non-Islamic religious bodies and vernacular schools to RM90 million next year;
- Official recognition of the Unified Examination Certificate (UEC);
- A commitment to appoint a Chinese deputy chief minister if GRS continues to govern.
The state is also considering allowing UEC holders to apply for state scholarships to study at state-owned institutions such as UCSF and KTYS.
This year, RM70 million was allocated to non-Islamic bodies and vernacular schools — up RM13 million from the previous year — and the allocation will rise further to RM90 million next year.
- Welfare Assistance for Vulnerable Groups
GRS’ inclusivity is also reflected in social welfare programs aimed at supporting vulnerable communities.
The “SYUKUR” cash aid program provides RM300 monthly assistance to low-income and hardcore poor families. With a total allocation of RM358.5 million, it is expected to benefit around 100,000 households.
The first phase covered 72,058 e-Kasih-registered families, while the second phase, launched in May, expanded to include unregistered and previously overlooked groups.
The state also introduced the “SMJ Friendly Housing” program, allocating RM3.2 million per constituency to build about 40 houses for eligible low-income families — improving living conditions and quality of life.
- Strengthening Local Political Unity
GRS is an alliance of Sabah-based parties, including Gagasan Rakyat, PBS, STAR, PHS, USNO, LDP, PCS, and SAPP.
On October 19, GRS launched its election machinery for the 17th Sabah State Election with the slogan “Our Home, We Protect” (Rumah Kita, Kita Jaga) — emphasizing solidarity among local parties and the commitment to uphold Sabah’s equal partnership status within Malaysia.
Although STAR and SAPP withdrew before the assembly dissolution, Hajiji expressed confidence that GRS remains united and disciplined, pledging to deliver a stable and goal-driven government if re-elected.
In early 2023, Hajiji survived an attempted ouster known as “Operation Kinabalu,” led by then Deputy Chief Minister and Sabah BN chairman Datuk Seri Bung Moktar Radin. With support from PH and several UMNO assemblymen, Hajiji retained his position.
“Our house was tested but did not fall. The GRS home is ours to protect,” he said.
- Maintaining Strong Federal Relations
Hajiji has consistently advocated constructive engagement with the federal government to uphold Sabah’s rights under the Malaysia Agreement 1963 (MA63).
At the MA63 Action Council meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim in September, he proposed increasing Sabah’s parliamentary seats — a suggestion Anwar agreed to in principle, pending constitutional and technical reviews.
He also urged the inclusion of tourism under the federal-state “Concurrent List,” now under study by a technical committee.
In the 2026 Federal Budget, Anwar announced that federal allocations for Sabah development had increased from RM4.4 billion in 2022 to RM6.9 billion, reflecting the MA63 spirit and federal commitment to Sabah’s growth.
Additionally, in October, the Kota Kinabalu High Court affirmed Sabah’s constitutional right to 40% net revenue entitlement under Articles 112C and 112D of the Federal Constitution — a decision warmly welcomed by Hajiji, who emphasized that the state had always pursued its rights through formal, cooperative channels.
- Infrastructure: Power, Water, and Roads
Following the state’s takeover of electricity regulatory powers from the federal government in January 2024, the Sabah Energy Council has advanced multiple power projects totaling 1,000 MW of capacity, including hydro, solar, and wind.
Sabah Electricity Sdn. Bhd. (SESB) has also implemented a Battery Energy Storage System (BESS) to improve grid stability and service reliability.
The government has launched the Tenom-Ulu Padas Hydropower Project and secured RM765 million from the federal government for the Southern Link project to enhance power distribution to the east coast.
On water infrastructure, Hajiji cautioned that Sabah’s supply issues are complex and cannot be solved “within a year” as claimed by opposition parties. Since 2021, 11 water treatment plant upgrades have been completed, while 10 more projects — including intakes, dams, and system expansions — are ongoing and expected to be completed by 2027.
On roads, the state continues to upgrade and maintain its network while collaborating with the federal government on major projects such as Phase 1B of the Pan Borneo Highway.
- Advancing Agriculture Toward Self-Sufficiency
Agriculture contributes 7–10% to Sabah’s GDP and remains a key focus of GRS policy.
In 2025, the state allocated RM610.85 million for agriculture, including RM373 million for farming, fisheries, and livestock operations across four sub-sectors: crops, livestock, aquaculture, and rubber.
The federal Ministry of Agriculture and Food Security also allocated RM86.66 million for 42 projects aimed at improving productivity, ensuring food security, and reducing import dependence.
Sabah’s current rice self-sufficiency level stands at only 22.6%. The government aims to raise it to 30% by 2026 through the revival of the Sabah Rice Board, which has received RM32 million for operational costs, equipment, and irrigation upgrades.
There are currently 14 Permanent Food Production Parks producing fruits, vegetables, and MD2 pineapples, with RM2.96 million allocated for their management. Thirty farms have also earned MyOrganic certification, enabling exports of highland vegetables to Brunei, Japan, and South Korea.
The government continues to support small and medium agro-industries through partnerships with Kojasa Mart, Desa Fresh Mart, and local supermarkets to expand market access.
The Department of Veterinary Services received RM87.79 million for 43 programs covering public health, disease prevention, and veterinary enforcement.
VOICE OF ASIA Editorial Note
At VOICE OF ASIA, we believe in amplifying the real voices of the people—especially those too often overlooked in national discourse. This translated article of Sin Chew’s highlights a perspective from Sabah that resonates with our editorial mission: to go beyond headlines and politics, and shine a light on what truly matters to everyday Malaysians.
The original version can be found here.
