Kota Kinabalu: Malaysia continues to strengthen high-technology sectors such as electronics and semiconductors in Penang and Johor, Sabah’s comparative strength lies in agriculture, marine resources, and rich tropical biodiversity.
“These are not constraints, but strategic assets,” said UMS Researcher Dr Rosalam Sarbatly (pic), stressing that the real opportunity lies not in increasing production alone, but in capturing greater value from existing resources through downstream development.
He said Sabah’s economic foundation is already supported by key sectors, including oil and gas activities in Sipitang, Kimanis, and Labuan, as well as a growing tourism industry driven by biodiversity and cultural heritage. These sectors provide stability, he added, but the next phase must focus on value creation within resource-based industries in line with global industrial trends.
Against this backdrop, Dr. Rosalam described the State Government’s initiative through the Ministry of Industrial Development and Entrepreneurship to develop the Kota Belud Industrial Park (KBIP) as timely and aligned with national development priorities under the Malaysia Plan.
“Sabah already operates multiple industrial zones, including the Kota Kinabalu Industrial Park and palm oil industrial clusters in Sandakan and Lahad Datu, forming a strong industrial base. KBIP,” he said, adding that it should complement rather than duplicate these hubs by focusing on a clear niche.
He proposed that KBIP be positioned as a pilot agro-marine industrial cluster, centred on high-value aquaculture and food processing, supported by integrated production systems, processing facilities, and cold-chain infrastructure.
This, Dr. Rosalam explained, would ensure products are not only produced but also processed and delivered according to market standards, creating a practical pathway for early-stage investment driven by real demand.
Such a phased and market-led approach, he added, would reduce investment risks while ensuring scalability and commercial validation.
Dr. Rosalam also stressed the importance of early fundamentals, including strong market linkages with anchor buyers, consistent production quality and volume, efficient logistics and cold-chain systems, and the development of technical capabilities for industrial-scale operations.
He said within Sabah’s broader ecosystem, KBIP could complement existing strengths by focusing on agro-marine industries such as premium seafood, marine-based products, and halal-certified food production.
“This could further expand into high-value bio-based products derived from Sabah’s biodiversity, including herbal extracts, plant-based compounds, and natural health ingredients for nutraceutical, pharmaceutical, and wellness industries.
“These are established global markets with strong demand,” he noted, citing the expanding seafood sector, rising use of marine-derived and plant-based bioactive products, and the global halal food market valued at over USD2 trillion, which continues to grow across Asean and the Middle East.
