Sabah would be reviewing the structure of Semporna’s tourism and accommodation sector following reports that 81 premises are largely operated by non local companies.

“I take note of the statement by Armizan Mohd Ali regarding reports that 81 accommodation premises in Semporna are largely operated by external companies,” Tourism, Culture and Environment Minister Jafry Ariffin said in Kota Kinabalu on Sunday.

On Saturday, Domestic Trade and Cost of Living Minister Armizan Mohd Ali said the Cabinet had agreed to form a multi ministry committee to examine complaints raised by local SMEs.

Armizan said the committee, coordinated by the Finance Ministry and involving agencies including KUSKOP, Home Affairs, Housing and Local Government, MITI and KPDN, would look into claims that social visit passes were being misused for business and employment, affecting local small enterprises.

He added that the same body would also assess risks linked to an influx of foreign products entering domestic markets through imports and online sales, which SMEs fear could weaken demand for locally produced goods.

Jafry said Sabah continues to welcome foreign investment but stressed that tourism growth must strengthen local participation, create jobs for Sabahans and ensure meaningful economic spillover to surrounding communities.

A Special Task Force on the Semporna Tourism Industry has already been set up to monitor developments, involving state agencies, local authorities, industry players and community representatives.

“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.