Kota Kinabalu: Sabah is ready to welcome more offshore energy investments as the State is strengthening its position as a regional offshore energy hub in Southeast Asia for projects in floating liquefied natural gas (FLNG), carbon capture, utilisation and storage (CCUS) and offshore renewable energy.
State Assistant Minister of Industrial Development, Entrepreneurship and Transport Datuk Dr Jonnybone J. Kurum said Sabah offers strong potential for investors and possess natural resources backed by its strategic location, existing offshore energy operations and government support.
Speaking at a VIP Luncheon on Corporate and Strategic Engagement held in conjunction with a two-day Offshore Energy Asia (OEA) 2026 Conference here, recently, he invited the industry players to consider Sabah as their next investment destination as the State Government is committed to creating a stable and investor-friendly environment.
Among those participants from this region and beyond were operators, investors, regulators and technology leaders attending the conference that covered extraordinary ground from FLNG, CCUS, to project bankability and insurance, to engineering and construction excellence.
“The theme for this year’s event, held for the third time, is Integrating Floating Energy Solutions for the New Energy Transition Era, which reflects exactly where Sabah stands today. We intend to be at the centre of the next chapter of energy development in this region.
“Hence, I am here today to make the case – plainly, and with confidence – that it should land, in significant part, right here in Sabah. Allow me to share why you need to look closely at what Sabah has to offer,” he said.
He said Sabah’s deep-water basins, and extensive coastline provided strong advantages for floating production systems and offshore renewable energy infrastructure.
“Sabah sits along some of the most strategically important waters in Southeast Asia — deep-water basins holding proven and prospective reserves, and long coastlines ideally suited to floating production, storage, and offshore renewable infrastructure.
“Our waters already host world-class FPSO and FLNG operations. That track record reflects geological and logistical advantages that remain largely untapped,” he said.
In addition, Jonnybone said the Sabah government is working closely with Petronas, Sabah International Petroleum and federal agencies to accelerate responsible energy development through better coordination and faster decision-making.
“We have built — and we continue to strengthen — a coordinated approach between state and federal authorities, designed specifically so that serious investors are never left waiting,” he said.
He said the Sabah Maju Jaya (SMJ) 2.0 roadmap for 2026-2030 places industrial development, entrepreneurship and sustainable energy at the core of the state’s economic agenda.
“When we engage investors, it is a whole-of-government effort involving the Chief Minister’s Office, the Finance Ministry and relevant agencies, all aligned behind the same priorities.
“Resources attract investors. Reliability keeps them. That is the model Sabah is building,” he said.
Jonnybone also highlighted the State’s local-content policy requiring at least 80 per cent of the workforce for new investment projects to comprise Sabahans.
He said the policy was designed to foster long-term partnerships with mutual benefits between investors and the local workforce rather than impose restrictions.
“We want the companies that invest here to grow together with Sabah people and this commitment runs both ways.
“We are also working closely with Social Security Organisation (Socso) and industry partners on job matching, upskilling, reskilling and certification programmes so investors can access a workforce that is ready from day one,” he said.
Jonnybone said Sabah offered immediate opportunities in expanding floating production and FLNG operations which the State already hosting operational expertise and infrastructure that can support expansion, Brownfield optimisation and new Greenfield development.
While ongoing CCUS initiatives, he said offer a genuine early-mover advantage to technology providers, investors and companies seeking to establish a presence before the regional regulatory framework matured.
He added that offshore wind and floating renewable energy also represented significant long-term growth potential, particularly for companies willing to help shape the industry’s development in Sabah.
“In offshore wind and floating renewables, we admitted that Sabah is at an earlier stage, which precisely an opportunity.
“The early entrants who work with us to help shape the regulatory and investment framework will be the ones best positioned as this segment scales across Southeast Asia,” he said.
He said the State also aimed to strengthen its growing ecosystem of fabrication yards, marine contractors and engineering service providers through greater collaboration with specialised technology firms.
In light of this, Jonnybone urged the participants and delegates attending the conference to view Sabah as a long-term strategic partner.
“Floating LNG, floating production systems, offshore wind and carbon management are complementary pillars of the energy transition, and Sabah is positioning itself to host all of these, together.
“We want companies to come to Sabah not simply as investors looking from the outside, but as partners building the future together,” he said.
Jonnybone hoped that business engagements and partnerships forged during the conference would translate into new investments, projects and economic opportunities that would benefit the people of Sabah.
