Malaysia

Sabah’s Blue Economy set to generate RM3.25 billion annually from marine yields

State charts bold course with ocean-based industries, green energy ambitions, and record-breaking investment inflows

Updated 1 year ago · Published on 20 Jul 2025 12:59PM

Sabah’s Blue Economy set to generate RM3.25 billion annually from marine yields
Ocean Thermal Energy Conversion (OTEC) represents one of the most promising renewable initiatives, CM says - July 20, 2025

SABAH’S Blue Economy is on track to contribute RM3.25 billion annually through marine harvests, with an estimated output of 491,000 tonnes of fish, prawns and other seafood products, according to Chief Minister Datuk Seri Hajiji Noor.

Speaking through Sabah Finance Minister Datuk Seri Masidi Manjun at the International Business Review (IBR) ASEAN Awards, the chief minister said marine harvesting was only one of 14 sectors under the Blue Economy framework. Others include renewable ocean energy, blue carbon, marine biotechnology, tourism, and maritime transport.

“There is more to Blue Economy than just deep-sea harvesting,” Hajiji said, highlighting the strategic significance of Sabah’s marine resources.

He noted that Ocean Thermal Energy Conversion (OTEC) represents one of the most promising renewable initiatives.

“OTEC power plants are currently being planned to span across 500km of coastline and, in time, to be able to generate 20,000MW of green energy, an unprecedented scale globally. This is not only a gamechanger for the country, it is a gamechanger for the region,” he said.

To support the development of the Blue Economy, the state has established the Blue Economy Industrial Park in Kudat, alongside new industrial zones in Kota Belud and Beaufort, aimed at attracting long-term investments.

On broader investment performance, Hajiji revealed that since September 2020, Sabah has secured RM17.41 billion in approved investments across 73 companies in the manufacturing sector. Of these, 52 companies have commenced operations with investments totalling RM7.8 billion and the creation of 3,636 jobs.

From 2022 to 2024, the state received a further RM42.3 billion in new investment proposals, projected to generate 32,996 jobs.

Sabah has also strengthened its stake in the national oil and gas industry through a Commercial Collaborative Agreement with Petronas. The state now holds 50 per cent equity in the Samarang oil and gas field, 25 per cent in Samur, and 25 per cent in the US\$3.1 billion floating liquefied natural gas (ZLNG) project in Sipitang.

To underpin these developments, the Sabah Energy Roadmap and Master Plan 2040 has been launched, targeting 700MW in energy generation over the next one to two years.

Additionally, RM679.85 million has been allocated in 2024 to tackle water shortages, with the long-term Ulu Padas hydropower project forming part of the state’s sustainable infrastructure efforts.

At the same event, nine organisations were honoured for excellence in various sectors.

They included Institut Jantung Negara (healthcare), Clean Kinetics Pte Ltd (renewable energy), Millenium Minerals Ltd (mining), Sabah Port Sdn Bhd (logistics), AiRTS Pte Ltd (artificial intelligence), Alpine Integrated Solution Sdn Bhd (event management), and Education Malaysia Global Services (education).

Sabah was named the Most Outstanding State in Malaysia for 2024, while Negeri Sembilan received the title of Most Progressive State. - July 20, 2025

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