Shafie urges Sabah to boost downstream industries amid global uncertainties - Borneo Post Online (2025)

By The Borneo Post onSabah

Shafie urges Sabah to boost downstream industries amid global uncertainties - Borneo Post Online (1)

Shafie

KOTA KINABALU (Apr 14): The Sabah government has been urged to expand into downstream economic activities to reduce reliance on external markets.

Senallang assemblyman Datuk Seri Panglima Mohd Shafie Apdal emphasised that Sabah cannot continue to rely on others, especially given the many global market uncertainties, such as US trade developments.

“What actions should we be taking to prepare ourselves for the global economy? Just imagine the high unemployment rate, with many graduates unable to secure jobs,” he said at the State Assembly sitting when debating the Head of State’s address.

He pointed out that the reality is Sabah remains overly dependent on raw materials without adding value through downstream processing.

“Sabah lacks a sustainable local industry network. We have not invested sufficiently in technical education, infrastructure, or rural areas and the existing agriculture,” he said.

“While the rest of the world is adapting policies to protect their people and economies, Sabah is still waiting for assistance. We have yet to adjust our long-term plans to face the increasingly challenging global landscape.”

He reminded of the youths of Sabah who remained unemployed, and skilled graduates migrating in the hundreds of thousands to seek for job opportunities in West Malaysia, Singapore and Hong Kong.

He also lamented the lack of effort to conduct job matching for the graduates with the existing industry in Sabah.

During his debate, Shafie also asked for updates concerning three industrial parks that have been announced in Kudat, Kota Belud and Beaufort.

“Are there investors who have committed?

“How can investors be attracted to come to Sabah with the water problem, electricity problem and the bad roads,” he said.

Shafie also commented that even the Sepanggar Port is being managed by the Arabs and asked if the people of Sabah lacked the capacity to manage the port themselves.

“And why can’t they?”

He reiterated that in Sarawak, the state government is actively fighting to manage its own port in Bintulu — so there is no reason why Sabah cannot do the same.

He also called on the State Government to disclose the names of companies investing in Sabah, the number of jobs they have created, and the percentage of those positions filled by the local workforce.

“Real investments are those that create high-skilled jobs for the people of Sabah, offer opportunities to local contractors and vendors, generate profit for the state, and build sustainable, high-quality economic value chains.”

At the same time, he also questioned why the target for Sabah’s self-sufficiency level for rice is only 60 percent by the year 2030.

“Why so slow when the people need it daily? This needs immediate action from the government,” he said.

Shafie said that he raised this concern as he was worried because rural folks are faced with high living costs.

“Where should we go from here to ensure we are not dependent on others? We have all the resources — rice, fish and vegetables. Can’t we develop a plan to ensure that we can produce the essential items we need?

“Food security is a matter of survival. It cannot be delayed. This is a critical issue, and I hope it can be addressed effectively — so that not only is there enough food, but our children can also have access to nutritious food that meets their needs,” he said.

He also stressed the lack of downstream activities for agricultural products.

“I don’t see it happening. We have pineapples in Keningau and various other agricultural products, yet there are no downstream industries in Sabah. I have raised this issue many times. We have cassava, vegetables, and even timber. I banned the export of logs because I wanted to establish furniture factories — not only to produce beautiful, high-quality furniture but also to create job opportunities and generate revenue for Sabah. This is important.”

Shafie also commented on Sabah’s ongoing water supply issue, emphasising that the blame should not be placed on poor weather or on God, but rather on the actions — or lack thereof — taken to address the problem.

“What actions should we take in this era of climate change that is occuring in the country, not just fires, not just flood. I raised this in Parliament,” he said.

“There must not only be enough funding, but also proper planning. We cannot resort to dismantling the houses of kampung folks to address flooding. And what about the 2,000 people in Lokawi — where will they go? And in Likas? Are we just pushing them to become squatters? We need proper planning. Take Kg Gana in Kota Marudu, for example. I did not chase away the people there. There were 2,000 of our people in Kg Gana. I told SAFODA, a government agency, not to remove them. I offered compensation with land. SAFODA had only 50 people, but there were 2,000 villagers. Where will they go?”

With regard to the water shortage issue, he said the problem is being felt across many areas, including Tawau, Sandakan and Papar, where many people still rely on rainwater — even students at Universiti Malaysia Sabah.

“I experienced it myself when I was in Semporna. My younger sibling had to buy bottled water just so I could bathe and cook — there was simply no water. Where is the Water Department?”

Shafie added that he was accused of terminating contracts with companies but he claimed that these were lopsided agreements that earned the companies millions from the government.

He also urged that companies failing to complete projects within the stipulated timeframe should have their contracts terminated.

At the same time, he questioned what long-term plans the State Government has in place to put an end to the ongoing crisis.

He also said that Sabah’s treated water supply was only 81 percent, while her non-revenue water stood at 50 percent, with Kota Kinabalu recording 38 percent in NRW.

Shafie urges Sabah to boost downstream industries amid global uncertainties - Borneo Post Online (2025)

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