KOTA KINABALU: Sabah took a major step forward in its bid to become a regional halal industry player with the launch of the state’s first purpose-built halal-certified SME hub, the Q-SME Halal Industrial Park.
Spearheaded by the state government’s strategic investment arm, Qhazanah Sabah Bhd (QSB), the RM62mil development is located in the HALMAS-certified Kota Kinabalu Industrial Park (KKIP).
The hub is designed to empower local entrepreneurs in halal-focused sectors by offering dedicated infrastructure, streamlined certification processes, and direct access to export opportunities.
“Unlike large-scale industrial parks that focus on mass manufacturing, this park is specially designed to support small and medium enterprises (SMEs) and start-ups in producing halal products at a medium scale, without compromising on quality,” said QSB chairman Datuk Dr Yusof Yacob at the joint development agreement (JDA) signing between QSB and Bina Indah Development Sdn Bhd, held alongside the launch of the Q-SME Halal Park here on Monday (June 16).
The industrial park, which comprises 17 ready-built warehouse units, caters to SMEs involved in halal food processing, packaging, cosmetics, and other certified products.
As of end-May 2025, construction was 77% complete, with full operations expected by year-end.
“This project is important to us because there has been strong demand. We have shortlisted interested entrepreneurs even before we publicly advertised this opportunity … these are people who proactively approached us.
“At this point, it seems there is hardly any space left. Some units are already booked and confirmed, including for halal food processing and halal-based cosmetics. All these businesses will form part of a certified halal industrial ecosystem,” he told reporters.
A key feature of the park is the centralised One-Stop Halal Centre, which will offer services including halal certification, marketing support, and export facilitation.
It will operate with backing from the Islamic Development Department of Malaysia (Jakim), the Sabah Islamic Religious Council (MUIS), and the Halal Development Corporation.
“With this model, we are not only empowering local industry players, but also paving the way for Sabah to become a regional halal product export hub.
“If this park succeeds as envisioned, it could become a model to be replicated in other districts across the state,” said Yusof.
He added that the park’s strategic location near Sabah Ports positions it well for international trade, giving halal SMEs a launchpad into growing markets in the region and beyond.
The project is also expected to generate significant employment, with each of the 17 units estimated to support up to 30 jobs, potentially creating more than 500 positions across various sectors.
“QSB is financing the project through a development loan, with rental income from tenants set to repay the investment and fund future industrial initiatives. This is a sustainable model, one that empowers businesses, creates jobs, and reinvests in long-term growth.
“Through this facility, we anticipate the emergence of more than 10 local products with the potential to grow into recognised brands, not only within Sabah, but also across Malaysia and beyond,” he said.
Yusof also noted the potential to expand halal-certified infrastructure across the state, given the strong response, adding: “We see this as the beginning of something larger, an ecosystem that supports halal innovation and enterprise throughout Sabah.
“Through the Q-SME Halal Park, we are not just building warehouses. We are building futures. We want Sabah’s entrepreneurs to thrive, and we are laying the groundwork for them to compete at a global level.”
Apart from the halal hub launch, the event also saw the signing of a joint development agreement for The Hill @ Damai, a mixed-use urban revitalisation project that will include Sabah’s second cardiac specialist centre, witnessed by state Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe.
A key component of this development is the proposed Sabah National Heart Centre, which will be the second of its kind in Malaysia, after the National Heart Institute (IJN) in Kuala Lumpur.
This state-of-the-art facility is expected to deliver specialised cardiac services to Sabahans, significantly reducing reliance on medical treatment outside the state and strengthening Sabah’s healthcare ecosystem.
The project also includes enhanced infrastructure such as improved road networks and multi-level parking facilities aimed at easing traffic congestion and improving accessibility.
“This centre is not only vital to Sabah’s healthcare landscape, but it also underscores our long-term commitment to delivering world-class medical infrastructure to the people,” he said.
He stressed that these two projects are a testament to QSB and the Sabah government’s commitment to strengthening the state’s economic infrastructure, from urban transformation to SME empowerment.
