Kota Kinabalu: The imposition of higher US tariffs is creating significant challenges for Sabah and the BIMP-EAGA region, impacting key sectors like palm oil, timber, seafood, and oil and gas.
Sabah BIMP-EAGA Business Council (BEBC) Chairman Dr Raymond Alfred urges immediate strategic adaptation to mitigate these effects and capitalize on new opportunities.
He said Sabah’s core industries are facing increased competition due to higher tariffs on exports to the U.S.
According to him, the palm oil industry, for example, is vulnerable to disrupted supply chains, increased ESG compliance costs, and reduced investment.
“The seafood industry risks losing access to key markets. ..Sabah’s oil and gas sector, particularly Petronas, faces indirect impacts through higher equipment costs, technology restrictions, and potential LNG market distortions.”
To counter these challenges, Alfred calls for a multi-pronged approach involving six key Sabah ministries: Industrial Development, Science & Technology, Finance, Agriculture, Education, and the Chief Minister’s Department.
A coordinated strategic action plan is crucial, focusing on diversifying export markets, investing in local R&D and technology, promoting sustainable practices, and strengthening regional cooperation within BIMP-EAGA., he said adding this includes developing value-added products, attracting green investments, and reforming education to focus on future skills.
The long-term solution for Sabah’s oil and gas sector involves energy innovation, securing alternative technology partners, and diversifying the energy portfolio.
The urgency of the situation demands immediate action to safeguard Sabah’s economic future.