Sabah has big dreams. A space centre that could put the state on the global aerospace map. A Blue Economy strategy designed to tap into its vast maritime resources. A push for energy independence that aims to reduce reliance on fossil fuels. 

On paper, these projects promise to transform the state’s economy, bringing new industries and high-value jobs.

But there’s one major obstacle standing in the way: Does Sabah actually have the workforce to make these plans a reality?

For all the ambition, Sabah is grappling with a severe shortage of skilled workers. 

More than 90% of the workforce falls into the low-skilled category, and while efforts have been made to train and upskill locals, it’s clear the numbers aren’t adding up. 

Experts estimated that Sabah needed at least 24,000 more skilled workers by 2020 to meet industry demands. That shortfall has only grown, especially in specialized sectors like aerospace, maritime technology, and energy development.

To make matters worse, many of the state’s most talented graduates are leaving. Almost 200,000 Sabahans have moved to Peninsular Malaysia, lured by higher salaries and better career opportunities. For a state trying to build industries from the ground up, the loss of skilled talent is a major blow.

Big ideas, bigger manpower problems

One of the most ambitious projects on Sabah’s agenda is the Sabah Space Centre. The concept is simple: use Sabah’s strategic location near the equator to launch satellites at a lower cost. The reality? Sabah doesn’t have the trained workforce to support a space industry.

The KKIP Aerospace Training Centre has been established to provide technical training, but its focus is largely on aircraft maintenance. Building and launching rockets require specialized expertise in propulsion systems, satellite technology, and orbital mechanics—skills that Sabah isn’t currently producing in significant numbers. Without foreign partnerships and outside talent, it’s hard to see how this project can progress beyond the planning phase.

Then there’s the Blue Economy initiative, which aims to position Sabah as a leader in marine biotechnology, sustainable fisheries, and ocean energy. The state has already set up the Centre for Blue Economy and Maritime Security Research (PPEBKM) at Universiti Malaysia Sabah (UMS), but the question remains: Who will actually run these industries?

The state has also expressed interest in Ocean Thermal Energy Conversion (OTEC), a promising renewable energy technology that uses temperature differences in ocean water to generate electricity. The problem? Sabah doesn’t have enough trained ocean energy specialists to develop or maintain such a system. The same workforce gap applies to the energy sector, where engineering, energy infrastructure, and industrial expertise are still lacking despite new agreements like the Petronas-Sabah Electricity gas supply deal.

Where are the skilled workers?

Sabah isn’t short on graduates, but it is short on graduates staying in the state.

UMS produces an average of 2,897 graduates annually, peaking at 4,236 in 2023. Other institutions, such as the Kimanis Petroleum Training Centre (KTC), contribute skilled manpower, particularly in oil and gas. But even with 5,000 to 8,000 skilled graduates coming out of Sabah’s education system every year, it’s not enough to meet the demands of these large-scale industries.

And then there’s the bigger problem: retention. Too many skilled Sabahans are leaving for better opportunities elsewhere. The state’s graduate unemployment rate dropped from 21.8% in 2021 to 14.2% in 2022, which suggests that more graduates are finding jobs. But are they finding jobs in Sabah? Or are they packing up and heading elsewhere for better pay and career prospects?

How can Sabah close the gap?

If Sabah is serious about developing these industries, it needs a proper workforce strategy. That means more than just setting up training centres—it means making sure graduates have clear pathways into jobs within the state.

One way to do this is by expanding UMS’s offerings. If Sabah wants a space industry, it needs an Aerospace Engineering and Space Technology Faculty at UMS. If it wants to lead in ocean energy, marine research programs must be scaled up. The KKIP Aerospace Centre must go beyond aircraft maintenance and train specialists in satellite technology, rocket engineering, and space operations.

Industry partnerships are also key. Why not bring in global leaders like SpaceX, Arianespace, or Blue Origin to help train Sabah’s aerospace engineers? The same applies to the energy sector—collaborating with Petronas, Shell, or Equinor could create a clear pipeline of skilled workers for the state’s energy transition.

But beyond education and partnerships, Sabah needs to stop the brain drain. The state needs to offer higher salaries, better career progression, and stronger incentives to keep skilled workers from leaving. One solution could be bonded scholarships, where students receive financial aid in exchange for working in Sabah for a set number of years. If the state can’t offer competitive wages, it will continue losing talent to Kuala Lumpur, Singapore, and beyond.

Can Sabah pull this off?

Sabah’s high-impact projects sound good on paper, but without a serious investment in local talent, they will depend on foreign expertise for years to come. Right now, the state doesn’t have enough trained professionals in aerospace, marine science, or renewable energy to support these industries. And if it keeps losing skilled workers to better-paying jobs elsewhere, the problem will only get worse.

The big question isn’t whether Sabah can build a space centre, develop a Blue Economy, or transition to renewable energy. 

The big question is: Will Sabah have the right and size of manpower required to make these dreams a reality?