THE Sabah government has significantly expanded its education and development spending over the past five years, with caretaker Chief Minister Hajiji Noor reaffirming the state’s commitment to nurturing a skilled workforce and sustaining robust economic growth.
Speaking at the 2025 Sabah Civil Service Convention held at the Sabah International Convention Centre (SICC), Hajiji said the total allocation for education funds in the state reached RM1.02 billion through various scholarship schemes.
“The State Government Scholarship allocation alone has tripled this year compared to previous years, amounting to RM145 million and benefitting 12,763 students,” he said.
He added that following the recent decision to recognise the Unified Examination Certificate (UEC), 37 students holding this qualification had been awarded state scholarships.
On infrastructure, Hajiji said Sabah allocated RM4.89 billion to manage and expand road networks, which grew from 21,876km in 2021 to 22,858km in 2024. To improve water supply, the number of treatment plants increased from 85 to 90 within the same period, raising treated water production capacity from 1,505 to 1,630 million litres per day.
Several key water projects are expected to be completed this year, including the Telibong II Water Treatment Plant expansion, and upgrades to the Beluran, Kanibongan and Kasigui facilities. Another 18 projects, funded through an interest-free federal loan worth RM320.25 million, are due for completion in 2026.
For electricity, the Sabah Energy Council has approved 11 projects with a total capacity of 1,219 megawatts, slated for completion by 2031.
Turning to tourism, Hajiji said Sabah recorded 10.67 million tourist arrivals between 2021 and 2025, generating RM23.42 billion in spending and creating over 360,000 jobs through heritage restoration, recreation development and urban beautification projects.
“The state’s vast tourism potential has attracted major hospitality investments, including the Sheraton Hotel Kota Kinabalu, Club Med Borneo Kuala Penyu, InterContinental Hotel Papar, Hilton Garden Inn Resort Tuaran, Hyatt Centric Hotel Kota Kinabalu, and Citadines Waterfront Hotel Kota Kinabalu,” he said.
With 207 domestic and 126 international flights operating weekly at Kota Kinabalu International Airport (KKIA), Sabah continues to be a leading destination for travellers from Brunei, China, Indonesia, the Philippines, Singapore, South Korea, Taiwan and Vietnam.
He said tourism was among the key pillars of the Hala Tuju SMJ 1.0 development plan, which has achieved results beyond expectations.
In agriculture, Hajiji cited a RM620 million investment in coconut cultivation and downstream industries by Linaco Resources Sdn Bhd as an example of investor confidence in Sabah’s economic direction.
“From 2021 until the second quarter of this year, the manufacturing sector recorded RM24.9 billion in investments from 87 foreign and domestic investors,” he said, highlighting major projects such as RM4.29 billion from SK Nexilis, RM3.43 billion from SBH Kibing Solar, and RM6.59 billion from Esteel Enterprise Sabah Sdn Bhd.
Hajiji said PETRONAS’s operations at the Sipitang Oil and Gas Industrial Park (SOGIP) demonstrate that Sabah continues to attract international investments. These initiatives have created more than 38,000 jobs for locals.
He described the 2021 Commercial Collaboration Agreement (CCA) between the Sabah government and PETRONAS as a landmark achievement that ushered in a new era of state participation in the oil and gas sector.
As part of the agreement, Sabah Energy Corporation (SEC) has been designated the state’s main gas supplier and transporter, with domestic gas capacity exceeding 250 million cubic feet per day and expected annual revenue of more than RM2.5 billion.
SMJ Energy Sdn Bhd, a wholly owned state entity, has seen its value grow to RM5 billion within three years, with total assets of RM4.9 billion and a profit of RM307 million.
“Sabah’s strong investment performance reflects investor confidence in the government and the efficiency of the state’s civil service,” Hajiji said. - November 11, 2025
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