Sabah needs to harness the power of new technology to address infrastructure needs and re-position the state on the path of growth and progress, said Industrial Development and Entrepreneurship Minister Phoong Jin Zhe.He noted the advances of technology offers a wide range of options which can provide a reliable, effective and lasting solution to water and energy supply problems in Sabah. “We need to find not only the right industry to reposition Sabah but also suitable new technology to resolve the lack of basic infrastructure in the state, such as building a dam to solve our water problem,” he said at the Malaysian Entrepreneurs Development Association (PUMM) Sabah Chapter’s 8th Anniversary and Installation Dinner in Kota Kinabalu on April 29.
He acknowledged Sabah still faces infrastructure problems, noting the state’s energy capacity is almost at its limit while many still struggle with water supply problems in various areas such as Sepanggar constituency.
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He stressed Sabah needs to identify a kind of industry that benefits the state directly and provides a competitive advantage in an era of change and transition as a result of the Covid-19 pandemic and the ongoing trade war between the United States and China. “Not only the fallout of the Covid-19 pandemic changed the way we do business but the trade wars between major powers creates volatility in the global economy and responsible for the skyrocketing cost of raw materials,” said Phoong.
Furthermore, he said Sabah imports more than 80 per cent of goods and exports less than 20 per cent which is chiefly the reason why the cost of living in the state is higher than other parts of the country.
Phoong lamented the state’s manufacturing sector and GDP has been left stagnant for the past 30 years. “During that time our manufacturing sector stood at six per cent of our GDP, but now it is just seven per cent,“ he said, noting it would be difficult to see economic growth in Sabah without the development of industries.
“The question is how do we overcome such challenges? That would require the commitment and efforts of the whole of the Government to identify the right industries to develop in the future,” he said while calling for closer cooperation between the Government and the private sector to exchange inputs on ways to advance various industries in the state.
He finds Sabah can reposition its economy and benefit greatly from having more precision in its approach to invest in industries that produce goods and services that the world needs to thrive in the future.
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