Latest news with #StateIndustrialDevelopmentandEntrepreneurship
Daily Express
14 hours ago
- Business
- Daily Express
Manufacturing: Sabah leads with RM7.3 billion investors
Published on: Saturday, June 21, 2025 Published on: Sat, Jun 21, 2025 By: Sisca Humphrey Text Size: Phoong said SMEs must shift towards becoming small and medium industries (SMIs) that produce export-ready goods. Kota Kinabalu: Sabah recorded RM7.3 billion in manufacturing investments in the first quarter this year, making it Malaysia's top destination for the sector. State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe said Sabah also ranked third overall in total investments across all sectors, adding that the next step is to empower local SMEs to industrialise and compete globally. 'This is a positive sign that Sabah is gaining traction, but we cannot just rely on external investment. Our local businesses must participate in this growth and move beyond being just small,' he said, when officiating the SME Sabah Conference 2025, Friday. Phoong said SMEs must shift towards becoming small and medium industries (SMIs) that produce export-ready goods. 'We must create, not just consume. We need more products made in Sabah, exported from Sabah,' he said. To support this, he said the State Government has allocated RM15 million this year to help small businesses acquire machinery, adopt automation and scale up operations. Advertisement 'This budget is meant to support our smallest players, to help them upgrade and grow,' he said. He also noted that Sabah's export volume rose by 11 per cent up to May, indicating an increasingly stronger industrial base. 'This shows that when we build capacity, Sabah can move toward becoming an export-driven economy. We cannot depend on imports forever,' he said. The conference was officially recognised by the Institution of Engineers Malaysia (IEM), which he said affirms the quality and technical relevance of the discussions held. 'To our engineers and technical experts, your knowledge is vital in strengthening Sabah's industrial ecosystem,' Phoong said. He announced the development of a 100-megawatt Battery Energy Storage System (BESS) in Lahad Datu, the largest in Southeast Asia. 'The project will help stabilise Sabah's power grid and meet the rising demands of an expanding industrial sector,' He also welcomed AirAsia's new Kota Kinabalu-Taipei-Fukuoka route, saying it would benefit both the tourism and investment sectors. 'It's not just about tourists. More direct connectivity means more investors and business travellers can easily access Sabah,' he added. However, he voiced concern over upcoming federal policies that could increase costs for SMEs, including the rationalisation of RON95 and diesel subsidies, SST expansion and the Sabah Labour Ordinance set to take effect July 1. 'We should not implement all these policies simultaneously. Each must be carefully reviewed to determine which should move forward, which should be postponed and which need to be re-evaluated,' he said. Phoong said he had raised these concerns during a national SME consultation chaired by Datuk Ewon Benedick and welcomed Prime Minister Datuk Seri Anwar Ibrahim's openness to policy reviews. He said Sabah's unemployment rate had dropped to 6.7 per cent in the first quarter, down from 8 per cent last year, and noted that companies such as ConocoPhillips have reaffirmed investment in the State. 'This tells us the economy is moving forward and investor confidence is returning,' he said. Phoong concluded on a light note, saying employers are now looking for the right people and so are voters. 'I've done my best and I'm ready to renew my contract,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Borneo Post
13-06-2025
- Business
- Borneo Post
Sabah records RM10.9 billion in investments in Q1 2025, ranks third nationally
Phoong speaking at the press conference. KOTA KINABALU (June 13): Sabah recorded a total of RM10.9 billion in approved investments in the first quarter of this year, surpassing the state's total investment figure for the entire year of 2024. According to the Malaysian Investment Development Authority (MIDA), the investment performance from January to March places Sabah third nationally, behind Selangor and Kuala Lumpur. State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe said Foreign Direct Investment (FDI) was the main contributor, accounting for RM6.6 billion or 61 percent of the total, while Domestic Direct Investment (DDI) amounted to RM4.29 billion or 39 percent. The manufacturing sector was the top performer, recording RM7.3 billion in investments — the highest among all states for this quarter. Of this, RM6.59 billion or 91.3 percent came from foreign investors, with the remaining RM711 million or 9.7 percent from domestic sources. The services sector followed with RM2.83 billion, while the primary sector attracted RM757.1 million. Phoong said the figures reflected continued investor confidence in Sabah's economic growth potential and its conducive business ecosystem. 'Despite global economic uncertainties and geopolitical pressures, Sabah remains a competitive investment destination trusted by both foreign and domestic investors,' he said at a press conference at Wisma Kewangan today. He added that the success was due to investor-friendly policies and the state government's strong commitment to stimulating industrial development. 'The state government is committed to strengthening the investment ecosystem and welcoming more investors to achieve sustainable and inclusive economic development for Sabah,' he said.
Daily Express
28-04-2025
- Business
- Daily Express
Can't bet only on agriculture, tourism
Published on: Monday, April 28, 2025 Published on: Mon, Apr 28, 2025 By: Crystal E Hermenegildus Text Size: Phoong visits one of the booths and receives a souvenir from the owner at SIFEX 2025. Kota Kinabalu: Sabah must urgently transition from a consumption-driven economy to a producing and manufacturing powerhouse, said State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe. He said Sabah can no longer rely heavily on agriculture and tourism alone to grow and secure its future in an increasingly uncertain global landscape. 'We must produce what we consume and export what we produce. We can no longer depend entirely on importing raw materials or finished products. Sabah must urgently become a manufacturing and producing state,' Phoong said. He told reporters during the Sabah International Food Expo 2025 at the Sabah International Convention Centre (SICC), Saturday. The call comes amid rising global uncertainties, including tariff wars, export controls, and supply chain disruptions, which Phoong warned could threaten Sabah's economic stability if not addressed. Despite the challenges, Sabah's manufacturing sector has already shown positive signs. Phoong said Sabah recorded the highest manufacturing GDP growth in Malaysia in 2023 at 4.4 per cent, driven by major investments such as Kibing's RM3 billion solar glass manufacturing plant and SK Nexilis's RM5 billion copper foil project. However, Phoong said this success must not breed complacency. He outlined the state's strategic push to upscale Small and Medium Enterprises (SMEs), encourage exports, and improve food security through new initiatives. 'We are not just giving machinery grants anymore. We are tying assistance to performance and outcomes. Recipients must show they can scale their businesses and reach international markets,' he said, citing the SME Up programme, which provides branding support, packaging improvement, and capacity-building training. Phoong also said Sabah's efforts to strengthen its food industry as an export sector, noting that food products, beyond traditional commodities like palm oil, are beginning to play a bigger role in Sabah's export portfolio. 'Trade wars teach us that food security is national security. Sabah has the natural resources to feed not just itself but the region – but only if we industrialise and build a full value chain,' he said. Phoong said the ministry is working closely with agencies like the Malaysia External Trade Development Corporation (Matrade), Exim Bank, and private associations such as the SME Association to prepare local entrepreneurs for regional and global markets. He said future-proofing industries would also involve equipping businesses with AI tools and digital marketing capabilities. 'It is no longer about competing locally. Sabah's entrepreneurs must be digital, must export, and must be able to brand and market themselves internationally,' he said. Phoong acknowledged that global competition and supply chain volatility are here to stay, particularly with developments like U.S. tariffs on Chinese goods, which indirectly impact Southeast Asian markets. 'We have no choice but to be proactive. We must build our industries to withstand these shocks. Sabah cannot afford to wait anymore,' he said. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
25-04-2025
- Business
- Daily Express
Jobs and business opportunities for locals: Phoong
Published on: Saturday, April 26, 2025 Published on: Sat, Apr 26, 2025 Text Size: Phoong said if the third production line is successfully realised, the total investment value will exceed RM3 billion Kota Kinabalu: Foreign investment in Sabah not only opens job opportunities for locals but also creates business opportunities for local suppliers in the State, said State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe. He said the investment by SBH Kibing Solar New Materials (M) Sdn Bhd not only promises an increase in job opportunities but also activates the involvement of over 600 locals, who now serve as suppliers and contractors or subcontractors at the factory. 'This is clear evidence of how foreign investment can have a direct impact on the people of the State, not only through employment but also through a broader economic chain,' he said. He said the great success was achieved in just two years since the factory began operations. Phoong said if the third production line is successfully realised, the total investment value will exceed RM3 billion. 'This is not just a number, but an opportunity and a bright future for the people of Sabah.' Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali described the success of foreign investments like Kibing as concrete proof of Sabah's ability to develop inclusively, not only economically but also in promoting the welfare of the people. 'When we talk about the cost of living, we cannot just look at the prices of goods alone. What is important is income generation and the creation of job opportunities,' he said, adding that every job opportunity created contributes to the household income of the people of Sabah. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
25-04-2025
- Business
- Daily Express
Folur Programme places Sabah on the global map
Published on: Friday, April 25, 2025 Published on: Fri, Apr 25, 2025 Text Size: Hajiji speech was delivered by State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe. Kota Kinabalu: The implementation of the Food Systems, Land Use and Restoration (Folur) Programme in Sabah has placed the State on the global map, alongside 27 other countries, under the international Folur initiative. Chief Minister Datuk Seri Hajiji Noor said through collaboration with the United Nations Development Programme (UNDP) and the Global Environment Facility (GEF), the Folur project — centred on Integrated Landscape Management — covers an area of approximately 2.38 million hectares across 12 districts in Sabah, and is expected to benefit around 54,000 rural residents. He said the Folur project is a significant step in Sabah's efforts to strike a balance between agricultural development and environmental conservation, as the State moves towards a more sustainable, efficient and inclusive food system. 'This project promotes sustainable agricultural practices, particularly in the palm oil sector, while also restoring degraded forest areas. It allows us to reduce pressure on forest ecosystems while ensuring food security and income sources for the people of Sabah,' he said at the launch of the 2025 Sabah-level International Day of Forests at the grounds of the Faculty of Tropical Forestry, Universiti Malaysia Sabah (UMS), Thursday. His speech was delivered by State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe. Hajiji said in the long term, this initiative will support climate goals, as forests play a vital role in combating climate change through carbon absorption. Folur will contribute to Sabah's commitment to climate action, biodiversity conservation and the Sustainable Development Goals (SDGs), particularly SDG 15: 'Life on Land.' He added that the State Forestry Department is currently drafting a Statewide Forest Master Plan, which will outline strategies for managing forest resources over the next 25 years, covering forested areas throughout the State. Through this plan, all Ecologically Sensitive Areas will continue to be protected, while socio-economic development that improves the well-being of Sabahans will also move forward. This aligns with the implementation of the Sabah Maju Jaya (SMJ) Development Plan 1.0 (2021–2025), which integrates infrastructure development with a focus on green growth. Hajiji said the Sabah Climate Action Council (SCAC), established by the State Government, acts as an advisory body and serves as a platform for consultation and policy coordination related to climate change. Several key initiatives have already been implemented, including setting strategic directions and coordinating climate change mitigation and adaptation projects at the State level. He added that given the forestry sector's crucial role in addressing climate change, a Climate Change and Greenhouse Gas (GHG) Unit has been established within the Sabah Forestry Department. 'Through SCAC, Sabah continues to strengthen its position as a leader in progressive, sustainability-focused environmental governance,' he said. Hajiji said a Climate Change Impact, Vulnerability and Adaptation Study was conducted in 2024, and this will serve as a reference for drafting the Sabah Climate Change Policy to ensure alignment with national climate action developments. As a state with low carbon emissions, Hajiji said Sabah can leverage this position to venture into a low-carbon economy, as it has the potential to develop with minimal energy and resource requirements, thereby reducing its climate impact. He also said Sabah is in the process of finalising its State Climate Change Policy, which is based on the principles of good governance, a just transition, resilience and sustainable economic growth, in line with Malaysia's Climate Change Policy 2.0. 'In tandem with the development of this policy, Sabah will also be drafting a Climate Change Enactment to align with the development of the National Climate Change Bill (RUUPIN), which is currently being finalised at the federal level,' Hajiji said. Touching on the recent amendments to the Forest Enactment, he said forest-based carbon activities will be regulated under specific terms and conditions, and any revenue or funds generated from forest carbon credit activities will be channelled directly to the State. He said this is important to support the Sabah Government's efforts in achieving a balance between socio-economic development and environmental conservation in the future. Hajiji asserted that all climate change-related activities in Sabah, including carbon markets, must be registered, monitored, analysed and reported to SCAC, as the focal point for the State's climate agenda. This ensures proper reporting to the State Government and equitable participation for Sabah. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
