Malaysia

Over RM2 billion allocated to transform Sabah into a smart and connected state

Federal Government pledges significant investment in digital infrastructure, with projects set to enhance internet connectivity, smart city development, and digital inclusion across Sabah

Updated 10 months ago · Published on 18 Nov 2025 9:49AM

Over RM2 billion allocated to transform Sabah into a smart and connected state
One of the flagship projects is the Kota Kinabalu Smart City initiative nvolving digital infrastructure investments exceeding RM300 million - November 18, 2025

THE Malaysian Communications and Multimedia Commission (MCMC) has welcomed the Prime Minister Datuk Seri Anwar Ibrahim’s announcement that the Federal Government has allocated over RM2 billion to Sabah to bolster digital infrastructure, including internet connectivity and smart city development.

The Commission confirmed that this allocation encompasses a series of key initiatives currently underway or planned across the state.

One of the flagship projects is the Kota Kinabalu Smart City initiative, a strategic collaboration between MCMC and the Kota Kinabalu City Hall (DBKK), formalised in December 2024, the Commission said in a statement on Tuesday.

The project involves digital infrastructure investments exceeding RM300 million and focuses on four core components: the expansion of fibre-optic networks, the provision of public Wi-Fi at strategic locations, the installation of integrated 4G and 5G ‘smart poles’, and the deployment of intelligent CCTV systems linked directly to the Integrated Operations Centre.

To further widen digital coverage throughout Sabah, the JENDELA 2 programme will expand to an additional 800 locations, particularly in remote and island areas, at an estimated total cost of RM1.4 billion.

This budget includes both development and operational expenses over a five-year period. The initiative is projected to benefit 3.7 million residents and achieve full coverage in populated areas.

As of September 2025, 131 National Information Distribution Centres (NADI) have been established across Sabah at an operational cost of approximately RM210 million for five years.

These centres provide community learning spaces with internet access, skills training, online services, and digital literacy programmes, ensuring equitable participation in the knowledge-based economy for residents, including those in remote regions.

The government is also implementing a Fibre-to-the-Home (FTTH) project in the Malaysian Armed Forces’ Family Housing (RKAT) across Sabah, delivering fibre-optic connections directly to service members’ homes.

Nine military camps in Sabah have benefited from the initiative, covering around 6,900 residences at a total cost of RM14.2 million.

MCMC reaffirmed its commitment to translating these investments into tangible benefits for Sabahans, improving network quality, user experience, online security, and smart city development. -November 18, 2025

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