Sabah Budget 2026 anchors growth on 'Blue Economy' agenda, says Hajiji


KOTA KINABALU: The Blue Economy will be at the heart of Sabah’s long term growth strategy, says Datuk Seri Hajiji Noor

The Chief Minister highlighted renewable energy, marine biotechnology and sustainable fisheries as key drivers for the state's prosperity under the state Budget 2026.

Wrapping up debates for the Sabah Budget 2026, Hajiji said the government was committed to building a strong legal and institutional framework for ocean‑based industries that will also ensure inclusivity and youth involvement.

“Sabah’s Blue Economy is not just about harnessing marine resources, but about creating jobs, empowering communities, and ensuring sustainability for future generations,” he said at the Sabah state Assembly budget session on Wednesday (Dec 17).

Among the efforts, he said the Ocean Thermal Energy Conversion (OTEC) was a pilot project in Sabah's east coast that was privately funded by three local developers and is expected to be completed by 2027.

He said the state passed the OTEC Enactment 2024 and also amended the Energy Commission of Sabah (ECoS) to strengthen the state’s push.

For marine industries and fisheries, he said the state government holds 30% stake in a private RM360mil investment for a tuna landing port in Kota Kinabalu.

Hajiji also disclosed that 15 industries have been identified under the Blue Economy including marine biotechnology and seafood, logistics, tourism, and river‑based recreation, renewable energy, mineral extraction, and carbon capture as well as xxpansion of downstream fisheries and aquaculture to boost food security and exports.

He said the state had held a Blue Economy conference in 2024 drawing over 4,000 participants, including students, researchers, and entrepreneurs as well a Sabah Blue Economy SkillFest 2025 that focused on training graduates and youth for ocean‑based industries.

He told the Assembly that Sabah’s Exclusive Economic Zone (EEZ) involving 200 nautical miles, covering 334,671 sq km, offers vast potential for marine resource development.

“The state is aligning its initiatives with United Nations frameworks on Blue Economy, ensuring compliance with international standards,” he added.

Hajiji said that Blue Economy will complement Sabah’s traditional sectors of land, forestry, and agriculture, while offering new opportunities in renewable energy and marine industries.

“By empowering youth, strengthening our governance, and leveraging private investment, Sabah can become a regional leader in the Blue Economy,” he added.

He said the RM6.4bil for Budget 2025 was to strengthen land ownership, modernize laws, eradicate poverty, and position Sabah as a leader in the Blue Economy.

 

 

 

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