Sabah Posts RM9.6 Bln Trade Balance For Jan-July 2024 – Masidi

KOTA KINABALU, Nov 15 (Bernama) -- Sabah posted a trade balance of RM9.6 billion in the first seven months of 2024, compared to RM11.5 billion during the same period last year, according to state Finance Minister Datuk Seri Masidi Manjun.

He attributed the 16.5 per cent contraction in the trade balance to an 18.2 per cent rise in imports, outpacing the state's export growth of 6.8 per cent.

The increase in both exports and imports was driven by major commodities, including crude petroleum and palm oil, alongside higher imports of machinery, transport equipment, food, and factory goods.

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"In the second quarter of 2024, Sabah's unemployment rate rose to 8.0 per cent, up from 7.5 per cent in the same period in 2023. Conversely, the labour force participation rate increased to 71.4 per cent, compared to 70.8 per cent last year," he said. 

"This indicates a higher number of people in the labour market than job opportunities available. Therefore, the Sabah Government will intensify efforts to attract more investment and create more job opportunities," Masidi said while presenting the Sabah Budget 2025, themed ‘Sabah Makmur, Rakyat Sejahtera’, at the State Legislative Assembly.

As of July, Sabah's inflation stood at 1.4 per cent, slightly below the national rate of 1.8 per cent, reflecting the state's stable inflation, supported by the Federal Government's continued efforts to control prices.

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Masidi noted that the Sabah Government had strengthened the supply chain to ensure adequate domestic supply at reasonable prices.

"Moderate private consumption is expected to sustain growth, contributing to an active money flow in the market. Positive economic trends will enhance investor confidence, stimulate business activity, and bolster the state's economic growth.

"Although Sabah's economy is recovering, it is essential for the government to maintain a prudent fiscal policy and high financial discipline," he said.

The focus, he added, should be on building economic resilience through smart investments and strengthening internal policies to enhance productivity and promote sustainable development, particularly in agriculture, tourism and green energy.

Sabah has attracted RM1.7 billion in investments, including domestic and foreign investments, mainly in manufacturing and services as of June 2024.

This includes investments from South Korea’s SK Nexilis Malaysia Sdn Bhd and China’s Kibing Group, valued at RM4.28 billion and RM2.48 billion, respectively.

Masidi highlighted that both investors began producing and exporting their products abroad in late 2023 for SK Nexilis and earlier this year for Kibing Group.

This year, Kibing Group’s subsidiary, SBH Kibing New Solar Energy (M) Sdn Bhd, committed to investing RM7.2 billion in a new solar glass manufacturing plant in three phases, which will create 5,000 job opportunities in Sabah.

At the same time, Kibing Group plans to expand its solar glass production capacity at its Kota Kinabalu Industrial Park facility with a third production line. The additional investment, estimated at RM700 million, will create 600 more job opportunities.

On Sabah's economic performance and outlook, Masidi stated that the state's economic growth momentum is expected to persist into 2024 and 2025. 

Considering current trends, the GDP growth rate for 2024 is projected at around two per cent, with an anticipated increase to approximately 2.5 per cent in 2025, he added.

-- BERNAMA