Sabah unveils SMJ 2.0 framework to drive sustainable economic growth

KOTA KINABALU (Jan 30): The Sabah government has officially launched the Sabah Maju Jaya (SMJ) 2.0 Roadmap for 2026–2030, aimed at boosting the state’s competitiveness, productivity, and economic value.

Chief Minister Datuk Seri Panglima Hajiji Noor said SMJ 2.0 builds on SMJ 1.0, which focused on recovery, stabilisation, and restructuring following the pandemic and the 17th State Election.

“SMJ 2.0 is more than a development plan.

“It reflects the government’s commitment to leading change in a rapidly evolving world driven by artificial intelligence, the digital economy, cross-border trade and global competition,” he said during the Chief Minister’s Keynote Address to Sabah Civil Servants and the launch of SMJ 2.0 at the Sabah International Convention Centre (SICC) here.

Hajiji explained that the roadmap was formulated through extensive engagement with the State Cabinet, ministries, industry players, youth, and citizens from all walks of life.

He said the 2026 State Budget allocates RM12.02 billion ― the highest in Sabah’s history ― to fund 1,173 development programmes and projects, aligned with the implementation of the 13th Malaysia Plan (13MP) and the Malaysia Madani aspirations.

He added that SMJ 2.0 is structured to align with the Sustainable Development Goals (SDGs) and Environmental, Social, and Governance (ESG) principles, ensuring sustainable growth and social well-being.

According to Hajiji, SMJ 2.0 upholds the Gabungan Rakyat Sabah (GRS) manifesto for the 17th State Election and is anchored on four main pillars: Sabah First, Sabah Forward, Sabah Prosper, and Sabah United.

Its five core objectives are to build a united and peaceful society, optimise state revenue and diversify the economy, strengthen the people’s economy, and develop human capital.

The roadmap is driven by three main thrusts: economic growth in industry, tourism and agriculture; human capital development and people’s well-being; and infrastructure connectivity and green sustainability.

“These thrusts are further supported by the Blue Economy, artificial intelligence and digitalisation, as well as inclusive development, enabled by fiscal sustainability, financial facilities, service effectiveness, integrity in governance and digital government,” said Hajiji.

In the industrial sector, Hajiji said Sabah has successfully attracted tens of billions of ringgit in investment, including the RM31 billion Esteel Enterprise Sabah Sdn Bhd project at the Sipitang Oil and Gas Industrial Park (Sogip), which is expected to create 10,000 high skilled jobs and strengthen the state’s steel industry supply chain.

The government will accelerate the development and upgrading of strategic industrial parks at Kota Kinabalu Industrial Park (KKIP), Sogip, and POIC Lahad Datu.

A Kudat Industrial Master Plan under the Blue Economy is also being drafted, while two new parks in Kota Belud–Kota Marudu and Beaufort–Kimanis are planned to expand regional development opportunities.

Hajiji added that the SME-UP Initiative targets 600 small and medium enterprise (SME) entrepreneurs, including the development of manufacturing data systems and the ‘Sabah Ready-to-Eat’ (RTE) programme to expand the market reach of local products.

On tourism, he said the sector has recorded a strong recovery, with nearly 10 million tourist arrivals over the past five years.

In line with Visit Malaysia Year 2026 and Visit Sabah Year 2027, the government is focusing on high-quality tourism, premium products, international events and global service standards, including the Asean Tourism Standard by 2030.

He said heritage, cultural and environmental preservation remains a priority through projects such as the Kinarut Cultural Center, the Sabah State Arts Council, Unesco World Heritage sites and Darvel Bay Park, supported by an allocation of RM444.69 million under the 13MP.

Agriculture remains a strategic pillar of SMJ 2.0, encompassing crops, livestock, and fisheries, with RM580.45 million under 13MP.

“The rice self-sufficiency level is set to increase from 30 per cent to 60 per cent by 2030 through the Padi Revolution programme across six districts, the provision of RM15 million worth of modern machinery, and the development of the Sabah Agricultural Biotechnology Centre in Tuaran,” he added.

Hajiji added that the livestock sub-sector aims to achieve a 25 per cent self-sufficiency level for ruminants by 2030 through contract farming, while the fisheries sector will be driven by the Sabah Blue Economy, focusing on increased fish landings, port development, and downstream supply chain growth.