Deepwater Port Expansion
Expansion of Sapangar Bay Container Port to be a regional transshipment hub, handling 1.25 million TEUs per year.
MALAYSIA’S GROWTH FRONTIER
Sabah is transforming its economy. Fueled by 5.1% GDP growth and RM14.6 billion in fresh investments, the state is transitioning into an advanced industrial hub. This momentum creates an ideal launchpad for ambitious enterprises aiming to capture Asia’s next growth phase.
RM88.8 bn
GDP · 2025
5.1%
REAL GDP GROWTH · 2025
RM14.6 bn
APPROVED INVESTMENT · 2025
RM108.5 bn
TOTAL TRADE · 2025
Department of Statistics Malaysia and MIDA, 2025.
SABAH’S CASE IN FULL
The case for Sabah, in ten points.
Three groups, in the order an investment committee asks them. What the state physically has. What operating here is actually like. And what the federation guarantees on top.
GROUP 01 · WHAT SABAH HAS
01A net carbon sink, with the data to prove it
02From raw deposit to advanced material
03Bio-based feedstock at industrial volume
04An eco-hospitality market you cannot copy
GROUP 02 · WHAT OPERATING HERE IS LIKE
05The developed gateway to Borneo and east ASEAN
06Infrastructure and power, funded and dated
07Young, and already working in English
GROUP 03 · HOW MALAYSIA DE-RISKS YOU
08A proven supplier to Western supply chains
09Passport to ASEAN and the emerging markets
10Rule of law and asset protection
01CARBON & CONSERVATION
A net carbon sink, with the data to prove it
2.227 million hectares — 30.06% of the landmass — are locked into Totally Protected Areas, against pledges of 50% forest cover and 15% marine protection. Two million trees replanted, RM30 million a year committed to forest preservation, and the traceable forest and land data your carbon and due-diligence reporting has to stand on.
63% forest cover
58% MALAYSIA · 31% WORLD
15% marine protection
CORAL TRIANGLE · HEART OF BORNEO
Forest carbon & credits
TRACEABLE DATA, EU DUE DILIGENCE
Three UNESCO designations
ECO-RESORT & WELLNESS PIPELINE
30.06%
OF THE LANDMASS IN
TOTALLY PROTECTED AREAS
02ADVANCED MATERIALS
From raw deposit to advanced material
Sabah refines its own minerals and ships the substrate, not the sand.
Photovoltaic solar glassSOLAR PV
Silica sand feedstock99.9% PURITY
Anode materialsEV BATTERY
PCB laminatesELECTRONICS
99.9%SILICA PURITY,
REFINED IN STATE
03FEEDSTOCK
Bio-based feedstock at industrial volume
26 million tonnes of palm residue leaves 129 working mills a year. The collection network exists, and EU aviation fuel mandates have written the demand into law.
Sustainable aviation fuelMANDATED EU DEMAND
Bio-chemicals & bio-plasticsDROP-IN SUBSTITUTES
Biogas & biomass powerMILL RESIDUE, 24/7
129 mills, statewideAGGREGATION IN PLACE
26 MtOIL PALM BIOMASS
AVAILABLE ANNUALLY
04ECO-HOSPITALITY
An eco-hospitality market you cannot copy
Mount Kinabalu alone carries three UNESCO designations, and Sipadan and Sepilok exist nowhere else. Visitors already fly in direct from Guangzhou, Shanghai, Seoul and Tokyo in four to five hours — 3.79 million arrivals in 2025. What is short is capacity: premium rooms, wellness, marina berths and conference space. Conservation rules cap buildable scale, so the rooms built first hold their rate.
Kinabalu Park
WORLD HERITAGE SITE · 2000
Crocker Range
BIOSPHERE RESERVE · 2014
Kinabalu Geopark
GLOBAL GEOPARK · 2023
3,793,709 arrivals, 2025
ROOM SUPPLY LAGGING DEMAND
1of3
UNESCO TRIPLE CROWNS
WORLDWIDE
05LOCATION
The developed gateway to Borneo and east ASEAN
Indonesia is building its new capital on this island and industrialising Kalimantan beside it. Sabah is the built-out gateway to that frontier — and still four hours from every major East Asian economy.
ASEAN consumers in reach
650M
Hubs within six hours
11
BIMP-EAGA transshipment
DESIGNATED HUB
Direct destinations, KKIA
27
4 hrs
TO HONG KONG, MANILA
AND JAKARTA
06INFRASTRUCTURE & POWER
Infrastructure and power, funded and dated
Not a masterplan. Federal money committed with completion dates, parks to plug into now, and firm low-carbon electricity contracted to your plant rather than certificated after the fact.
Sepanggar Bay port1.25M TEU · OCT 2027
KKIA & Tawau airportsRM563.2M UPGRADE
Pan Borneo, Sabah706 KM
Hydro · solar · biomass1,224 MW · SE-RAMP 2040
PARKS READY NOW · POIC · KKIP · SOGIP · SIP
RM1.6bnCOMMITTED AND
UNDER CONSTRUCTION
07PEOPLE
Young, and already working in English
Half of Sabah is under 30, and the working day runs in English — filings, meetings and floor instructions alike. That combination is rare in the region.
POPULATION BY AGE BRACKET
0–14 28%
15–29 27%
30–44 23%
45–59 14%
60+ 8%
20,000+ GRADUATES A YEAR · ENGLISH-MEDIUM COURTS AND FILINGS
27.7 yrsMEDIAN AGE,
HALF THE STATE UNDER 30
08TRUST
A proven supplier to Western supply chains
Western semiconductor firms have finished silicon on Malaysian soil for four decades. The audit culture, export-control practice and customs record that implies are already in place — an origin that clears US and EU scrutiny, from a state with the forest data to prove its own supply chain.
Non-aligned ASEAN member
NO SANCTIONS EXPOSURE
US trade ties since 1957
SIX DECADES UNBROKEN
Double-tax treaty network
70+ JURISDICTIONS
Traceable forest & land data
EU DUE DILIGENCE
40 yrs
OF WESTERN SEMICONDUCTOR
MANUFACTURING IN MALAYSIA
09MARKET ACCESS
Passport to ASEAN and the emerging markets
Malaysian origin travels. Build here and the goods leave with the paperwork already in their favour.
ASEAN originZERO TARIFF
RCEP15 MARKETS · CUMULATION
CPTPPPACIFIC RIM ACCESS
JAKIM halal certificationOIC MARKETS
0%TARIFF ON INTRA-ASEAN
TRADE IN GOODS
10RULE OF LAW
Rule of law and asset protection
A common-law jurisdiction that runs in English, with nothing standing between you and the regulator — and an exit that doesn’t need permission.
Foreign ownership100% PERMITTED
Profit repatriationUNRESTRICTED
Intellectual propertyTRIPS-ALIGNED
Arbitral awardsNEW YORK CONVENTION
100%COMMON-LAW JURISDICTION,
ENGLISH-LANGUAGE COURTS
SABAH MAJU JAYA 2.0
In recent years, Sabah has made significant catalytic investments in infrastructure to spur socio-economic growth.
Growing Industrial Ecosystem
Prominent global companies such as Esteel, SK Nexilis and Kibing Solar are setting up facilities in KKIP & SOGIP.
Electrical Infrastructure Buildout
Sabah has built South East Asia’s largest battery energy storage system (BESS) at Lahad Datu, with a capacity of 100MW/400MWh, aimed at stabilising supply on the east coast grid with renewable energy.
Renewable Energy Transition
The 337.5 MW Upper Padas Hydroelectric Dam in Tenom, now in construction, will be Sabah’s largest single source of firm low-carbon power.
Terrestrial Connectivity
The 2,083 km Pan Borneo Highway connects major townships across Sabah and Sarawak, 706 km of which crosses Sabah, linking Sindumin to Tawau.
OUR PARTNERS
Backed by Sabah’s regulatory and investment ecosystem
Invest Sabah is Sabah’s official investment agency. We work with our partners to streamline regulatory approvals, connect you to key infrastructure, and accelerate your project setup from day one.
FIVE PRIORITY SECTORS
Where the opportunity lies.
Renewable Energy
Hydro, solar, biomass and bioenergy built to industrial scale under SE-RAMP 2040. Firm, low-carbon power contracted before your plant breaks ground.
LEARN MOREAgro-Industry
Commercial crop estates, integrated plantations and downstream processing plants. State policy is to grow, process and brand here, not to ship the raw crop away.
LEARN MORELogistics & Trade
Container transshipment, air cargo and aircraft MRO, backed by cold-chain capacity on Malaysia’s second busiest airport and BIMP-EAGA shipping lanes.
LEARN MOREGreen Manufacturing
Solar glass, battery-grade materials and oleochemicals, built around low-carbon power rather than cheap extraction. Heavy industry, decarbonised.
LEARN MOREEco-Tourism
Low-impact resorts, wellness retreats and coastal infrastructure across three UNESCO-designated sites and primary rainforest.
LEARN MOREALREADY BUILDING HERE
Global industry leaders have already committed. Construction is underway.
Esteel Group
Integrated green steel manufacturing complex
RM 31 bn
SIPITANG · ONGOING
Kibing Solar Group
Silica sand processing plant, solar photovoltaic (PV) glass manufacturing facility
RM 10.2 bn
KOTA KINABALU, KIMANIS · IN EXPANSION
SK Nexilis
Ultra-thin copper foil plant
RM 2.3 bn
KOTA KINABALU · OPERATIONAL
† Investment values proposed, pending verification against agency records.
WHO WE ARE
Sabah’s single window for inbound investment.
Invest Sabah coordinates approvals, land and incentives across Sabah and the federal government. One team, one accountable point of contact.
ABOUT USOUR SERVICE
Your Journey with Invest Sabah, from the first call to your first shipment.
01
Advisory
Detailed insights into target growth industries, value chain dynamics and competitive landscapes.
02
Site options
Shortlisted parcels with acreage, tenure, power, water and logistics cost indications.
03
Approvals pathway
Coordination with MIDA, state agencies, utilities and local authorities on licensing and incentives.
04
Aftercare
Ongoing support through construction, commissioning and expansion.
Tell us what you’re planning.
GET IN TOUCH