SANDAKAN: Sandakan cannot afford to settle for simply keeping businesses alive; it needs fresh investment, new industries and a stronger government-led strategy to put the city back on a sustainable growth track, said Liberal Democratic Party (LDP) Vice President Chong Thien Ming.
Chong said the economic scars left by the Covid-19 pandemic were still being felt by Sandakan’s business community, with some major factories having closed while many small and medium enterprises (SMEs) continued to struggle with weak business conditions and financial commitments.
“Many businesses were caught between stagnant business conditions and their financial commitments to banks, including overdrafts and term loans. Some had no choice but to reduce their workforce, while others had to retrench employees or eventually close down altogether,” he said.
While acknowledging that Sandakan’s economy was slowly recovering, Chong said the pace remained too slow and businesses were still operating cautiously.
“There are businesses that are surviving and managing, but survival alone cannot be our long-term economic strategy,” he said.
According to Chong, the next phase should be about bringing new money, industries and jobs into Sandakan, rather than simply helping existing businesses weather difficult conditions.
Chong said the Sandakan Municipal Council (MPS) had an important role in improving the town centre, public facilities and the overall business environment.
However, he stressed that economic revival could not be placed solely on the shoulders of the local authority, as it required the involvement of the State and Federal governments, investment agencies and the private sector.
He said Sandakan needed to move beyond beautification projects and focus on economic activities capable of generating long-term employment and business opportunities.
However, Chong said attracting major investors should not come at the expense of local businesses.
He said SMEs must be positioned to become part of the supply chain whenever new factories and major investments enter Sandakan, with SMEs ready to become suppliers, contractors, transport operators, service providers and supporting businesses.
He called for stronger access to financing, technology, skills training and new markets to help viable SMEs expand and become more competitive.
Chong also pointed to the expected involvement of Petronas in the gas sector as a potential catalyst for Sandakan’s economy.
He said development could begin as early as next year, subject to the completion of the necessary paperwork and approvals, with the gas sector expected to come into operation around 2029.
But he stressed that Sandakan should not wait until the project begins before deciding how local businesses could benefit.
“This is an opportunity we must prepare for now. We should not wait until the project starts before asking how Sandakan businesses can participate,” he said.
For Chong, the challenge is therefore not simply getting Sandakan’s economy to recover, but ensuring the next wave of investment creates opportunities that reach local businesses, workers and the wider community.
“The focus should be on creating an environment where investment can come in, local businesses can grow and our people can secure better employment opportunities,” he said.
