Kota kinabalu: The government is refining several proposals for high-tech investments in Sabah, including in the semiconductor sector, to ensure the state does not become merely an assembly hub, but instead plays a role in the global supply chain. Minister of Investment, Trade and Industry (MITI) Tengku Datuk Seri Zafrul Abdul Aziz said Sabah has a semiconductor network that is close to several other countries which gives it an advantage in the supply chain.
According to BERNAMA News Agency, Tengku Zafrul emphasized the importance of selecting the right sectors for investment to avoid becoming merely an installation site with no added value. Discussions have been held with the Malaysian Investment Development Authority (MIDA) and the Malaysian External Trade Development Corporation (MATRADE) Sabah to focus on specific sectors and technologies, avoiding outdated or ‘sunset’ industries.
Tengku Zafrul made these comments during a ‘santai bersama calon Pakatan Harapan (PH)’ programme for the 17th Sabah State Election for the Api-Api state seat, Thonny Chee. He stressed the federal government’s commitment to ensuring Sabah does not become just an ‘assembly hub’ for high-tech investments.
He elaborated on the government’s manufacturing sector development plan, which aims to increase economic complexity by offering added value in the production chain, rather than just assembling or producing finished products. This approach is expected to improve living standards through higher salaries, stimulate the local SME ecosystem, and provide broader economic benefits.
Moreover, Tengku Zafrul addressed concerns about the increase in investments from China and South Korea, stating it should be evaluated based on sustainability and export potential rather than dependency on specific countries. Sabah’s role in the China Plus One strategy and its trade surplus mark it as a key export destination for the country.
On Nov 8, Tengku Zafrul announced that Sabah recorded RM11.37 billion in approved investments in various sectors during the first six months of the year, creating 7,892 job opportunities since 2022. This achievement reflects investor confidence in Sabah, bolstered by the New Industrial Master Plan 2030 (NIMP 2030) and the Green Investment Strategy (GIS), positioning the state as a downstream manufacturing and renewable energy hub.