Sabah: A Strategic Partner for Chinese Investors - Dr. Joachim

22 November 2024

KOTA KINABALU: Sabah's strategic location near major Asian economies positions it as an ideal destination for investment, according to Deputy Chief Minister II Datuk Seri Dr. Joachim Gunsalam.

In his keynote address at the Malaysia (Sabah)-China Business Summit 2024, held at the Sabah International Convention Centre (SICC), Dr. Joachim highlighted three key factors that make Sabah an attractive partner for Chinese investors, foremost being the State Government's commitment to sustainable development.

"Sabah is not merely focused on growth; we are dedicated to pursuing sustainable development that preserves our natural heritage while embracing modern technologies," he stated.

Dr. Joachim, who also serves as the Local Government and Housing Minister, noted that Sabah's economy has demonstrated remarkable resilience and growth.

"In 2023, our services sector expanded by 4.5 percent, contributing approximately 51 percent to our Gross Domestic Product (GDP), largely driven by tourism-related industries."

He emphasized the strength of the tourism sector, citing that from January to July 2024, Sabah welcomed over 700,000 international visitors, with Chinese tourists making up the largest segment at more than 200,000 arrivals.

"This represents an extraordinary 905.9 per cent increase from the only around 26,000 Chinese arrivals during the same period in 2023. These numbers not only reflect the strong bonds between Sabah and China but also demonstrate the immense potential for further growth in our tourism sector."

Secondly, Dr Joachim said the State Government is committed to renewable energy initiatives that offer substantial investment opportunities while maintaining its commitment to environmental concern.

He said through the Sabah Energy Roadmap and Masterplan 2040 (SE-RAMP 2040), Sabah is aiming to attain over 50 per cent renewable energy generation mix in terms of megawatt (MW) capacity by 2035.

"This also aligns in the aspiration of digital transformation through our e-Government initiatives and digital infrastructure development, creating a business-friendly environment."

Thirdly, he said the State Government emphasises human capital development.

"With over 90 per cent of our population now having access to basic healthcare and improved education systems, we are building a skilled workforce ready for the future economy.

"Our collaboration with Chinese partners in technology transfer and skills training will be crucial in this journey," he said.

Looking at the summit programme, Dr Joachim said he was particularly excited about the forums addressing smart infrastructure, food security, tourism ties, and renewable energy.

"These sectors represent immediate opportunities for collaboration between Sabah and China."

Dr Joachim said the presence of Chinese businesses and investors here today reflects the strong foundation of trust and cooperation between Sabah and China.

"The tourism sector has seen remarkable growth in Chinese visitors, and we are ready to expand this success to other sectors."

Dr Joachim also invited the Chinese participants to explore the various opportunities presented during this summit from the State's industrial parks to its renewable energy projects and from its digital economy initiatives to the tourism sector.

"Together, we can build a partnership that not only benefits our economies but also serves as a model of international cooperation in the ASEAN region."

Also present were, Minister of Industrial Development and Entrepreneurship Sabah (MIDE), Datuk Phoong Jin Zhe; Deputy Minister of Plantation and Commodities of Malaysia, Datuk Chan Foong Hin; MIDE Permenant Secretary, Datuk Thomas Logijin and Counselor from China Embassy in Malaysia, Li Sa.