Phoong on likely cause of Sabah's unusually high 2023 trade figure
Published on: Wed, Jun 25, 2025
By: Abbey Junior Text Size: Phoong said based on Mida's trend line, Sabah's trade performance in 2024 actually improved from pre-pandemic levels in 2019 and 2020, which were in the RM36 billion to RM40 billion range. Kota Kinabalu: The unusually high trade figure recorded by Sabah in 2023 is likely due to a single transaction and does not reflect the actual performance of the State's economy. State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe said he has formally written to the Department of Statistics Malaysia (DOSM) seeking a clarification over the sudden spike, which saw Sabah's total trade value rise to RM158 billion that year, a sharp increase from previous years. 'If you look at the trend from 2019 to 2022, Sabah's trade consistently hovered between RM36 billion and RM58 billion. But in 2023, it suddenly jumped to RM158 billion. That is very unusual,' he said. He said initial checks suggest the increase may be linked to a single entry of goods related to a large-scale investment project, which does not reflect long-term trends. Phoong noted that Malaysian Investment Development Authority (Mida) figures offer a more consistent view of Sabah's trade performance, recording RM52.1 billion in 2023 and a 2.9pc increase to RM53.6 billion in 2024. 'This shows the State's economic fundamentals remain stable and positive,' he said.
Advertisement He explained that while both DOSM and Mida reports tally at the national level, showing total Malaysian trade at RM2.6 trillion in 2023 and RM2.9 trillion in 2024, there is a discrepancy of over RM100 billion in Sabah's data alone. 'That's why I have written officially to the DOSM Director to request an explanation. I am still waiting for their reply.' Phoong said the difference may lie in how the agencies record trade activity, noting that some methods may count goods at points of exit such as ports or airports, which can distort the location attribution in State-level data. He warned that misreading the 2024 figures in comparison to 2023 could lead to a false conclusion that Sabah's economy is in decline. 'You can't simply compare 2024 to 2023 and call it a collapse. If one year is abnormally high due to a unique transaction, and the next year returns to the long-term average, it doesn't mean the economy has shrunk — it means the previous figure was an outlier.' Phoong said based on Mida's trend line, Sabah's trade performance in 2024 actually improved from pre-pandemic levels in 2019 and 2020, which were in the RM36 billion to RM40 billion range. He urged all parties to interpret trade statistics in context and avoid politicising the numbers. 'Even if the DOSM number is technically correct, it doesn't reflect the actual ground situation in Sabah. The picture painted by that one year gives a misleading impression.' 'We welcome scrutiny, but it must be fair and based on consistent data,' he said. Previously, Sabah Umno Information Chief Datuk Suhaimi Nasir had criticised the State Government for failing to stimulate economic growth, citing DOSM figures that showed Sabah's exports fell by RM59.3 billion in 2024 and claiming that imports had also dropped sharply. * 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
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Borneo Post
11 hours ago
- Borneo Post
Heated exchange in Sabah Assembly over investment project questions
KOTA KINABALU (July 7): A heated exchange erupted during today's State Assembly question-and-answer session, sparked by a dispute over the ethics of raising questions about a major investment project in the state. The incident began when State Industrial Development and Entrepreneurship (MIDE) Minister Datuk Phoong Jin Zhe was responding to an additional question from Senallang assemblyman Datuk Seri Shafie Apdal regarding the progress of Esteel Sabah Sdn Bhd's project. During his response, Phoong took a moment to express frustration over Elopura assemblyman Calvin Chong Ket Kiun, whom he accused of raising numerous concerns about the project outside the assembly but never within it. He noted with regret that Chong had even lodged a police report regarding the project's alleged delays, yet refrained from bringing the same concerns into the assembly's formal proceedings. 'I have repeatedly prompted you to ask any questions regarding the project in our State Assembly sittings, but you never did,' Phoong said, while thanking Kapayan assemblywoman Datuk Jannie Lasimbang for being the one to raise the issue officially. Calling the politicisation of the investment project disappointing, Phoong said the matter concerned Sabah's investment image and should not be treated lightly. Chong stood up and asked Phoong whether he spoke Hakka before expressing confusion in the dialect over what the minister was saying, claiming he had prepared questions on the matter. At this point, State Assembly Speaker Datuk Seri Kadzim M Yahya called for calm, but tensions continued to rise. Phoong stood by his claim, stating that Chong had never submitted any verbal or written questions on the Esteel Sabah project in the assembly. Puzzlingly, Chong agreed, saying, 'I fully support that.' Sri Tanjong assemblyman Justin Wong Yung Bin then came to Chong's defense, questioning what was wrong with an elected representative asking questions on behalf of the rakyat. The Speaker again attempted to defuse the situation, but Phoong continued to explain before being interrupted by Chong, who told him: 'You just answer the question. There is no need to query me on why I ask questions outside.' Kadzim called for order once more, asking Chong to sit down. Shafie then suggested allowing an additional question to calm things down, but the Speaker declined and moved to the next item. Before the exchange could settle, an unidentified assemblyperson quipped, 'He doesn't dare to ask questions here,' referring to Chong. Chong stood again to defend himself, insisting he was not afraid. 'I know you are brave, so just sit down,' the Speaker replied, prompting Chong to finally comply. Later in the session, Chong was scheduled to pose an unrelated question to the State Community Development and People's Wellbeing Ministry. Before proceeding, the Speaker asked, 'Is your heart still heated?' 'Still. It is still,' Chong replied, prompting the Speaker to remind him to remain focused on the intended question before continuing the session.
Borneo Post
11 hours ago
- Borneo Post
Esteel's green steel investment on track, physical works underway
Phoong KOTA KINABALU (July 7): The investment by Esteel Sabah Sdn Bhd in the state is proceeding as planned, with support from the State Ministry of Industrial Development and Entrepreneurship (MIDE), said Minister Datuk Phoong Jin Zhe. Phoong said the company's ongoing expansion efforts and increased investment volume reflect strong confidence in Sabah's economic prospects. This confidence was further demonstrated with the signing of the Land Lease Agreement for Phases 2 and 3 at the Sipitang Oil and Gas Industrial Park (SOGIP) on December 31, 2024. As part of its commitment, Esteel made an initial RM35 million deposit to ensure smooth project implementation. Following the issuance of the Foreign Manufacturing License (FML) in late January 2025, Esteel has undertaken proactive and systematic follow-up actions to maintain momentum. In February, Esteel signed a Natural Gas Supply Agreement with Sabah Energy Corporation (SEC) and Petronas, securing a reliable and sufficient energy supply to support operations at its upcoming green steel plant. The company completed the redesign process to match its expanded operational scale and, in March and April 2025, conducted a transparent and competitive bidding process for the construction of a private jetty. This culminated in the signing of the Phase 1 Jetty Construction Contract with China Communications Construction Company (CCCC) on May 30, 2025 — the same day as the official launch of Esteel's Phase 1 Investment Project, officiated by the Prime Minister. Several other key milestones have also been achieved, including: Approval of the Development Plan for the green steel plant by the Sipitang District Council; Review and clearance of the Environmental Impact Assessment (EIA) by the Environmental Protection Department (EPD), confirming compliance with environmental regulations; Approval of the Earthwork Plan by the Sipitang District Council, allowing physical work to proceed; Signing of EIA conditions by Esteel as a formal commitment to environmental sustainability throughout the project. To expedite construction, Esteel has finalized a contract for site clearing and preparation, with physical work now in full swing.
Focus Malaysia
12 hours ago
- Focus Malaysia
Instead of zooming, tourism should be viewed panoramically
WHEN viewed through the lens of various stakeholders, tourism is a different thing to different people. Since the Travel and Tours Enhancement Course (TTEC) was introduced in 2012, I have been urging travel industry personnel to look beyond the academic definition of tourism. To discover new business opportunities, they ought to recognise that tourism is a gargantuan business that overlaps hundreds of sectors, with the major industries being the airlines, hotels, restaurants, retail outlets, attractions, theme parks, and transport using vehicles, trains and ships. When developing the Mesra Malaysia course in 2019, I incorporated the most pertinent facts and figures found in the Tourism Performance Report by Tourism Malaysia on inbound tourism, and assessments in the Domestic Tourism Survey by the Department of Statistics Malaysia (DOSM). In 2018, the top five states with the most number of domestic visitors were Selangor (30.2 million), Sabah (20.4 million), Sarawak (19.4 million), Kuala Lumpur (19.2 million), and Pahang (18.1 million). The other nine states combined received a total of 114 million domestic visitors. The ranking changed slightly in 2019, with Selangor (33.6 million), Kuala Lumpur (22.6 million), Sabah (22 million), Perak 21.1 million), and Sarawak (19.8 million). Last year, the top three states were Selangor (34.5 million), Kuala Lumpur (27 million) and Perak (21.8 million). While conducting several Training-of-Trainers on Mesra Malaysia in 2019, none of the wannabe trainers could explain correctly why highly popular Penang and Melaka were not among the top five states. It was the same when I conducted the Training-of-Trainers on TTEC in 2022. This is because many people, including those who ought to know better, are still stuck to their superficial understanding of tourism. Those in the travel business would associate tourism with tours, hotel operators with tourists, and politicians with success stories to claim or shout about. Like it or not, they should be more objective and not define tourism according to their whims and fancies or perspectives. Tourism includes activities by anyone who travels out of town, state or country regardless of distance, and not commuting nearby for work, study, dining, or shopping. Those who did not stay overnight away from home are termed excursionists at their destinations, regardless of whether they were within or in a foreign country. Those who stayed overnight were tourists, and two-third of domestic tourists stayed in free accommodation provided by relatives. Visitors can be excursionists or tourists, and all are categorised by nationality and not where their travel originates. For example, many foreigners visiting Malaysia are working as expats or operating businesses in Asean nations, and they take the opportunity to travel within the region. International tourism includes foreigners coming in (inbound) to visit our country and Malaysians going out (outbound) of our country. Contrary to popular belief, domestic travel is not just within the country but could either be interstate travel or intrastate, which is within the same state. I have often explained that the high numbers of domestic visitors recorded in Sabah and Sarawak were not due to large number of Malaysians travelling from other states, which was always the answer offered by participants during training. They are people travelling within the same state. Recently, Penang state executive councillor for tourism and creative economy Wong Hon Wai was unhappy with the 2024 Domestic Tourism Survey, which was carried out using the same methodology honed over the years as far back as before 2018. As published, he said the survey placed Perak ahead of Penang in terms of domestic tourist numbers, and pointed out that Penang hotels recorded three million international visitors and 5.2 million domestic hotel guests, according to Tourism Malaysia's official 2024 statistics. He was reported to have said that in comparison, Perak, which topped the Domestic Tourism Survey, recorded only 4.18m domestic hotel stays. In Penang, tourism is tied to rich culture, heritage and world-class arts events, so a household survey cannot capture the full picture. He added, 'DOSM classified all residents who travel beyond their usual area, including those who do not stay overnight, as domestic tourists.' He also criticised the broad definition of 'domestic tourists' used in the survey report. Be that as it may, I have followed, analysed and commented on the annual reports of the Domestic Tourism Survey over the years, which were then published at the end of every June, and found them to be accurate, consistent, and aligned with international best practices. DOSM definition of visitors, which covers excursionists (same day visitors) and tourists (overnight visitors) is the same as given by the United Nations World Tourism Organisation (UNWTO). Only those who comprehend basic tourism terms will be able to understand tourism facts and figures. ‒ July 7, 2025 YS Chan is master trainer for Mesra Malaysia and Travel and Tours Enhancement Course and an Asean Tourism Master Trainer. He is also a tourism and transport business consultant. The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia. Main image: Bernama
