KOTA KINABALU: Sabah has cemented its position as one of Malaysia’s most attractive economic destinations, securing the third-highest spot nationwide for approved investments with a total of RM10.9bil in the first quarter of 2025.
Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe (pic) said the figure has already surpassed the entire investment total recorded for 2024, reflecting renewed confidence in Sabah’s growth potential and economic direction.
“Sabah now ranks just behind Selangor and the Federal Territory of Kuala Lumpur in terms of total approved investments in Malaysia,” he said, citing the latest performance report from the Malaysian Investment Development Authority (Mida).
Foreign direct investment (FDI) was the main driver, contributing RM6.6bil or 61%, while domestic direct investment (DDI) accounted for RM4.29bil or 39%.
Phoong said this balanced interest from both international and local players signals strong faith in Sabah’s business ecosystem.
The manufacturing sector emerged as the largest contributor, drawing RM7.3bil in approved investments, which marked the highest in Malaysia for this quarter.
Of that amount, RM6.59bil (91.3%) came from foreign sources, while RM711mil (9.7%) originated locally.
The services sector followed with RM2.83bil, and the primary sector attracted RM757.1mil.
“These achievements show that Sabah is not just keeping pace, but emerging as a frontrunner in key sectors, supported by our investor-friendly environment and the state government’s strong commitment to driving industrial development,” Phoong said.
He added that despite ongoing global economic uncertainty and geopolitical challenges, Sabah remains a competitive, resilient, and trusted destination for capital and enterprise.
