Sabah seeks law reforms to boost industrial investment

Daily Express

10-07-2025

Published on: Thursday, July 10, 2025
Published on: Thu, Jul 10, 2025
By: Crystal E Hermenegildus Text Size: Phoong said a comprehensive plan involving both tax and non-tax incentives was being drawn up to position Sabah as a more attractive and competitive investment destination. Kota Kinabalu: The State Government is currently engaging with its federal counterparts to review and reform key legislation related to industrial development and investment incentives, said State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe. He said the review was necessary as some existing laws and policies may no longer be relevant in today's rapidly evolving global investment landscape. 'We are negotiating with the Federal Government to re-evaluate several Acts, including those concerning industrial development and trade incentives. 'The global investment ecosystem has changed significantly, and some of the current legislation may be outdated or no longer applicable,' he told the State Assembly, on Tuesday. Phoong was responding to Moyog Assemblyman Datuk Darell Leiking during the question-and-answer session, who had asked about the minimum infrastructure standards required by investors, whether Sabah could meet those expectations, and if state sales tax revenue could be utilised to overcome infrastructure shortcomings. Darell also queried the timeframe the ministry could commit to in upgrading infrastructure to match investor needs once a major project is approved. In reply, Phoong said the aim of the ongoing legislative review was to ensure that less developed states such as Sabah receive stronger focus and incentives to close the development gap with more advanced states. 'As a matter of principle, states that are less advanced in the manufacturing sector should be given priority and stronger incentives. 'We want to ensure that all states in Malaysia can develop in a fair and balanced manner,' he said. Phoong said a comprehensive plan involving both tax and non-tax incentives was being drawn up to position Sabah as a more attractive and competitive investment destination. 'YB Moyog is well aware of this matter. These negotiations are ongoing and involve a wide scope of reform,' he added. Phoong also said the ministry was being cautious with regard to investments that have high infrastructure demands such as data centres, which require large amounts of electricity and water. He said a well-planned approach was necessary to avoid overstressing Sabah's infrastructure. This was in response to Darel's question on why Sabah could not develop data centres like Sarawak, pointing out Sabah's abundant water supply and its strategic location to serve markets such as the Philippines, Papua New Guinea, Australia and New Zealand. Phoong said the proposed reforms were part of a broader long-term strategy to ensure Sabah keeps pace with national and regional economic development. * 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.
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