Sedco Mining, Sabah Oil & Gas Development ink MoU

KOTA KINABALU (March 11): A strategic collaboration between Sedco Mining Sdn Bhd (SMSB) and Sabah Oil & Gas Development Corporation Sdn Bhd (SOGDC) is expected to strengthen Sabah’s industrial development and open new opportunities for investment in the state.

Deputy Chief Minister and Minister of Industrial Development, Entrepreneurship and Transport Datuk Ewon Benedick said the state government has always maintained that Sabah’s economic development requires an integrated approach involving close cooperation among state agencies.

“Strategic collaborations such as this not only strengthen coordination among state development institutions but also create a stronger platform to stimulate industrial growth and enhance Sabah’s economic competitiveness at the regional level,” he said during a memorandum of understanding (MoU) signing between SMSB and SOGDC here on Tuesday.

Ewon said the collaboration is particularly significant as both entities fall under the purview of his ministry.

“This position creates an important advantage in terms of institutional synergy, policy coordination, and the implementation of development projects in a more strategic and integrated manner.

“It marks an important step towards strengthening the strategic collaboration between two state entities that play significant roles in driving Sabah’s economic development,” he said.

According to him, when state development agencies operate within the same ecosystem and share aligned development objectives, the planning and implementation of projects can be carried out more efficiently, swiftly, and effectively.

“This approach also enables the state government to optimise the use of resources, accelerate the development of strategic infrastructure, and strengthen investor confidence in Sabah’s investment ecosystem,” he said.

Ewon added that the collaboration also opens opportunities for more comprehensive development at the Sipitang Oil and Gas Industrial Park (SOGIP), one of Sabah’s strategic industrial hubs.

He said initiatives such as land reclamation could expand industrial development areas within SOGIP to accommodate more industrial investments in the future.

“This step is crucial in ensuring that Sabah has sufficient industrial capacity to accommodate large-scale investments,” he said.

He noted that plans to deepen the shipping access channel to the Sawit Kinabalu Sandakan Industrial Park (SKSIP) could open a new dimension for industrial development in Sabah.

Enhancing the capacity of the shipping route would enable the port to receive larger vessels, thereby improving supply chain efficiency and strengthening Sabah’s position as a regional industrial and trade hub, he explained.

“These initiatives will not only strengthen SOGIP’s position as an industrial hub in Sabah but will also generate economic spillover to other industrial development areas including SKSIP and surrounding areas,” he said.

With increased industrial, port and logistics infrastructure capacity, Ewon said more investment opportunities are expected to emerge, which would stimulate economic growth, strengthen the industrial value chain, and create more business and quality employment opportunities for Sabahans.

He noted that while Sabah is blessed with vast and diverse natural resources, these resources would only bring real benefits if developed through clear strategic planning, quality investments, and efficient governance.

“The state government’s approach is clear, we do not merely want to exploit existing resources, but we want to ensure that their development creates a complete industrial value chain.

“This will not only increase the economic value of these resources but also generate supporting industries, new business opportunities, and employment opportunities for the people of Sabah,” he said.