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Last updated at Nov 21, 2025
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💪 Stronger Economy and Fiscal Discipline
Universiti Teknologi MARA (UiTM) Sabah senior lecturer Dr Jain Yassin described the 2020 to 2025 period as a "story of crisis, recovery, and cautious growth."
Universiti Teknologi MARA (UiTM) Sabah senior lecturer Dr Jain Yassin
"Sabah's economy contracted sharply by 7.5 per cent in 2020, making it one of the most affected states in Malaysia. But the Sabah Maju Jaya (SMJ) Plan introduced that same year became GRS's blueprint for recovery and governance reform," said Jain, also an advisor for the APPGM-SDG in Sabah.
He added that the plan led to:
Steady economic growth of between 3.5 and 4 per cent in 2022, with positive growth continuing through 2023 and 2024.
Sabah's revenue collection for three consecutive years, 2022 to 2024, reached almost RM7 billion annually, compared with RM3.59 billion in 2020.
Additional indicators of Sabah’s recovery include:
• Sabah’s GDP hit RM84.30b in 2024, the highest since Covid-19, up from RM77.80b.
• Controlled inflation at 1.2% in 2024, below the national 1.8%; policies seen as effective.
• Projected growth to continue in 2025 and 2026, with up to 2% GDP increase expected from high-impact projects.
• RM2.37 million in Micro Credit loans approved financing in support of 1,210 SMEs.
💰 Investments and Future Allocation
Under the 13th Malaysia Plan (13MP), running from 2026 to 2030, Sabah will receive one of the highest development allocations in the country, RM6.9 billion for 2026 alone.
The Sabah government has also approved a development expenditure ceiling of RM12.02 billion under 13MP, covering 1,173 programmes and projects, the largest allocation in Sabah's history.
The SMJ Plan has spurred growth across multiple sectors, with oil and gas leading the way.
The establishment of SMJ Energy Sdn Bhd (SMJE) and the Commercial Collaboration Agreement (CCA) with Petronas ensure Sabah benefits directly from its natural resources.
SMJE, valued at RM50 million when launched, is now worth RM5.1 billion and has created more than 1,000 skilled jobs.
"The collaboration with Petronas through the CCA and the establishment of SMJE will generate higher revenues, attract more investments, and create more employment opportunities for Sabahans," said Jain.
Foreign direct investments in renewable energy and manufacturing have also expanded, including:
• The RM7.2 billion solar glass manufacturing plant in Kimanis by the Kibing Group, which operates facilities in Kota Kinabalu Industrial Park and Sikuati, Kudat, employing nearly 2,000 people.
• Other major projects include Esteel Enterprise Sabah Sdn Bhd and the Sipitang Oil and Gas Industrial Park (SOGIP).
🛣️ Infrastructure & Human Capital
The state government has strengthened its commitment to education and human capital development, with allocations over the past five years totalling RM1.02 billion. The State Government Scholarship allocation has tripled this year to RM145 million, benefiting 12,763 students.
Following the state's recognition of the Unified Examination Certificate (UEC), 37 UEC students have been awarded state scholarships.
Infrastructure development has also been prioritised:
• Roads: RM4.89 billion allocated for road management, expanding the network from 21,876km in 2021 to 22,858km in 2024.
• Water Supply: In 2024, Sabah reached 90 treatment plants, raising capacity from 1,505 to 1,630 million litres per day. Major upgrades including Telibong II, Beluran, and Kanibongan will be completed this year, and 18 additional projects funded by a RM320.25 million interest-free federal loan are due next year.
• Electricity: The Sabah Energy Council has approved 11 projects with a total capacity of 1,219 megawatts, set to be completed by 2031.
• Pan Borneo Highway: Four key packages (Papar to Donggongon, Tawau to Semporna, Lahad Datu Bypass, and Kampung Lot M to Batu 32 Sandakan) completed under the GRS administration.
🏘️ Impact on Grassroots
Beyond figures and infrastructure, the impact of GRS policies is being felt at the grassroots level. After 18 years of living with his in-laws, security guard Zuraidin Hais, 42, from Kampung Kelanahan Rimba, Papar, finally owns a home under the Mesra Sabah Maju Jaya (SMJ) housing programme.
"I applied several times with no result. But under the GRS administration, I received approval quickly with the help of staff at the local MP's office," he said.
Launched in September 2022, the Mesra SMJ housing scheme is part of the SMJ Plan's third core pillar. As of June this year, 7,482 homes have been completed.
Jain noted that despite remaining challenges such as poverty and infrastructure gaps, the GRS administration has provided a stable foundation for growth and improved governance.
"The achievements under the SMJ Plan reflect long-term stability and a clearer direction for Sabah's development," he said. As Sabah prepares to enter the next phase of its development under the 13MP, Hajiji reaffirmed that GRS remains focused on delivering growth that benefits all Sabahans.
"Our goal is to ensure that progress is felt by every layer of society," he said.
🔎 About Gabungan Rakyat Sabah (GRS)
Gabungan Rakyat Sabah (GRS) is a political coalition governing the state of Sabah, Malaysia, led by the Chief Minister, Datuk Seri Hajiji Noor. Its administration is guided by the Sabah Maju Jaya (SMJ) Development Plan, a long-term roadmap focused on achieving sustainable and inclusive growth across the state's economy, infrastructure, and human capital. GRS is committed to ensuring fiscal discipline, attracting significant investment, and delivering development that benefits all levels of society, from major industrial projects to grassroots housing initiatives.
- Generated by AI
This News Stack is based on an article published by New Straits Times.
📰 PRN Sabah In News
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