Sabah welcomes foreign tourism investment, but insists on local benefits

KOTA KINABALU (Feb 8): Sabah welcomes foreign investment in its tourism sector, but such investments must deliver tangible benefits to local communities and the state’s long-term economic interests, said Datuk Jafry Ariffin.

The Minister of Tourism, Culture and Environment stressed that concerns about reports of 81 accommodation premises in Semporna being largely operated by external companies must be assessed comprehensively and based on facts, rather than in isolation.

“Sabah welcomes foreign investment, as global networks and market access are important drivers of tourism growth. However, investment must deliver clear benefits to Sabah by strengthening local participation, creating jobs for Sabahans, and ensuring meaningful economic spillover to the community,” he said in a statement on Sunday.

To address ongoing challenges in Semporna’s tourism sector, Jafry said the ministry has already established a Special Task Force on Semporna Tourism Industry Monitoring, involving relevant state agencies, local authorities, industry players and community representatives.

He explained that the task force’s primary objective is to resolve tourism-related issues in Semporna through a comprehensive and systemic approach, rather than reacting on a case-by-case basis.

“The focus is to align roles, jurisdiction and enforcement among relevant agencies to ensure proper governance, effective enforcement and orderly tourism development in Semporna,” he said.

Jafry noted that issues related to illegal business activities and operations fall largely under the jurisdiction of the Ministry of Local Government.

Nevertheless, he said the state government, through the special task force, will coordinate closely with the ministry and relevant authorities to ensure proper governance and effective enforcement.

“Our approach is evidence-based and solution-driven. Tourism must not evolve into an enclave economy where profits leave but local benefits remain minimal,” he said, adding that while Sabah must remain competitive globally as a tourism destination, Sabahans must remain the primary beneficiaries of tourism growth in their own state.

He also said the state government will continue to work closely with the federal government, including the  Domestic Trade and Cost of Living Ministry (KPDN), to ensure clear governance, coordinated enforcement and sustainable tourism development for Semporna.

On Saturday, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali had called on the state government to take a closer, data-driven look at foreign involvement in the state’s tourism industry, particularly in Semporna.

The Papar MP said preliminary findings indicated that 81 resorts, chalets and accommodation facilities in Semporna are operated either through joint ventures between foreign and local companies, or are fully owned and run by foreign entities in about half of the cases.

“While we welcome foreign investors, we also need to examine what returns and benefits we are actually gaining. They may bring advantages such as international networks that attract foreign tourists, but we must look at the entire value chain,” he said after officiating the launch of Kinarut Palm Avenue in Kinarut.

Armizan cautioned against a situation where local micro, small and medium enterprises (MSMEs) and workers are sidelined.

He stressed that stronger studies, monitoring and enforcement are needed, and expressed hope that Sabah’s Ministry of Tourism, Culture and Environment would work closely with the federal Ministry of Tourism, Arts and Culture (Motac), with possible research support from Universiti Malaysia Sabah (UMS) or the Institute for Development Studies (IDS).

He added that KPDN stands ready to assist in areas under its jurisdiction.