Sabah has secured a major industrial milestone with the launch of a RM31 billion three-phase investment by Esteel Enterprise Sabah Sdn Bhd, a project Chief Minister Datuk Seri Hajiji Noor says will not only drive green technology innovation but also uplift communities across the state.
Hajiji said the initiative would create a wide range of benefits — from job creation and skills development to renewed investor confidence in Sabah’s economic direction.
“With regard to employment, I wish to stress the importance of giving priority to Sabahans. I want all industry players to invest in the training and development of our local workforce and to comply with this fundamental requirement as a core principle of our commitment to local development,” he said at the launch of Phase One of the Esteel project at the Sabah International Convention Centre (SICC) in Kota Kinabalu on Friday.
“This collective effort is essential to ensure that our local workforce possesses the necessary skills and knowledge to meet the demands of industries.”
The Esteel facility, valued at RM6.4 billion in its first phase, is expected to spur economic activity through the Sipitang Oil and Gas Industrial Park (SOGIP), with broader impacts anticipated throughout the state.
Hajiji noted that industrial zones such as SOGIP and the Kota Kinabalu Industrial Park (KKIP) have seen steady growth in tenancy over the past four years, prompting the state to approve new parks in Kota Belud, Beaufort, and Kudat under its Blue Economy initiative.
“Sabah will always remain investor-friendly and we have implemented policies to attract more investors here. We are committed to create a conducive space that nurtures investments and fosters collaboration.
“We understand the importance of creating a stable, transparent, and supportive environment for investments to flourish,” he said.
Earlier, during his address at the state-level Kaamatan Festival launch at Hongkod Koisaan in Penampang, Hajiji spoke of the government’s focus on uplifting the rural economy through modern agriculture, community tourism, and small enterprises.
“The state government remains committed to empowering rural socio-economic development through strategic approaches — including modernising agriculture, supporting small and medium enterprises, and expanding community-based tourism,” he said.
“People in the rural areas must be given economic opportunities — whether through modern farming, tourism or skills training. This will not only help them increase their income but also reduce poverty in Sabah.”
To strengthen food security, Hajiji said Sabah has reactivated the Sabah Rice and Padi Board, targeting a 30% rice self-sufficiency level by 2026 and 60% by 2030.
“This step is important to reduce our dependency on imports and strengthen local food supply,” he added.
The Chief Minister also emphasised the importance of a strong working relationship with the Federal Government, saying such cooperation is crucial to delivering tangible outcomes for Sabahans.
“I am confident that strong and close ties with the Federal Government will be the catalyst for the success of our development policies. It is crucial to ensure the people of Sabah benefit directly.”
This year’s Kaamatan Festival, themed “Kaamatan Untuk Semua, Kaamatan For All, Kaamatan Montok Toinsanan”, marks the 65th year since its official introduction in 1960.
“Kaamatan does not belong to one ethnic group alone. It belongs to all people of Sabah. It reflects the spirit of goodwill and harmony that forms the foundation of our state’s stability,” Hajiji said. – May 30, 2025
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Prime Minister Datuk Seri Anwar Ibrahim accompanied by Chief Minister Datuk Seri Hajiji Noor doing the launching gimmick. – May 30, 2025
