Sabah’s Economic Model Offers New Hope For Sustainable Growth -- Expert

By Jailani Hasan

LABUAN, Aug 5 (Bernama) -- The new Sabah-centric economic strategy is paving the way for more targeted, long-term development efforts, offering renewed hope for the state’s economic recovery and job creation, said an expert.

The recently introduced Sabah New Economic Model (SNEM), developed by the Sabah Economic Advisory Committee in collaboration with Universiti Malaysia Sabah and the Institute for Development Studies, outlines a practical framework to address the state’s structural challenges while promoting economic resilience through localised planning.

Chartered Institute of Logistics and Transport (CILT) Malaysia former president and CILT International for Southeast Asia vice-president Datuk Dr Ramli Amir said the SNEM is timely and necessary for a state with unique development needs.

“Sabah has long been guided by national frameworks that often do not reflect our local realities. SNEM provides a more empirical, flexible, and inclusive approach to economic planning that puts Sabahans at the centre,” he said in a statement to Bernama today.

He said the model comes at a time when the state is navigating through modest gross domestic product growth of 1.1 per cent in 2024 and a 7.7 per cent unemployment rate, highlighting the urgency for reform. 

He added SNEM addresses these concerns by focusing on revenue autonomy, infrastructure development, high-impact investments, and capacity building.

“Among the model’s key recommendations are implementing provisions of the Malaysia Agreement 1963 to increase state revenue, and allocating the RM42 billion federal development fund to fast-track infrastructure projects such as the Pan Borneo Highway, water and electricity upgrades, and rural digital connectivity.

“(Other key recommendations include) accelerating diversification into sectors such as the blue economy, eco-tourism, and renewable energy, and establishing industrial parks and downstream processing facilities to create skilled jobs,” he said.

Ramli said human capital development must be prioritised to reduce skills mismatch and stem migration of local talent. 

He said that strengthening vocational training, promoting entrepreneurship, and ensuring that returning Sabahans are welcomed with better job opportunities and innovation pathways are all vital to long-term progress.

He also noted that proper implementation and regular monitoring are critical to ensure lasting results. 

“What is encouraging about SNEM is its emphasis on accountability, data-based decisions, and coordinated policy actions that can adapt as we progress.

“The SNEM roadmap spans 2025 to 2030, with near-term goals focusing on equitable revenue settlement and infrastructure acceleration, and long-term targets set on building a digitally connected, industrially diverse, and self-reliant Sabah,” said Ramli.

This is not just a plan on paper, but also a strategic, inclusive approach to unlock Sabah’s full potential and ensure future development is more equitable, sustainable, and locally driven, he added.

-- BERNAMA