THE recent dissolution of the Sabah State Legislative Assembly by Chief Minister Hajiji Mohd Noor has paved the way for the 17th state election. The Gabungan Rakyat Sabah (GRS) ruling coalition aims to retain power for the next term to demonstrate its efforts not only in advocating for the rights of Sabah, such as MA63, but also in addressing critical issues, particularly poverty and job opportunities. There is no doubt that the coalition government has succeeded in translating the promises in its election manifesto into results that its people can enjoy.
This coming election is far more than about political stability. It is a critical mandate on the state’s economic future. The spirit of MA63 has been manifested through the implementation of various matters that have been jointly agreed upon between the Federal Government and the Sabah Government. Sabah has also now had a more assertive voice and more comprehensive involvement, which is quite different from decades past.
Sabah needs to focus on local aspirations to create political understanding for the state’s development. The execution of economic plans is critical and should extend beyond Sabah’s historical reliance on traditional sectors.
In the last few years, the state government has introduced several policies to navigate Sabah’s economic transition. Although Sabah will receive many benefits from the 13th RMK, which will accelerate the development of underdeveloped areas and strengthen economic integration, the state should be able to maximise its economic evolution through the Blue Economy.
The core principle is to utilise ocean resources for economic growth and improved livelihoods while preserving the marine ecosystems. Through a wide range of industries, including renewable energy, tourism and shipping, Sabah will be able to address global challenges such as climate change and poverty.
The promulgation of the Ocean Thermal Energy Conversion (OTEC) Enactment 2024 has demonstrated the State’s commitment to ensuring that Sabah moves forward towards achieving its socio-economic goals in line with sustainable development. This technology harnesses the temperature difference in deep ocean water to generate clean energy and is projected to provide up to 20,000MW of power along Sabah’s coastlines.
The Sabah Energy Roadmap and Masterplan 2040 ambitiously aim for renewable energy generation, considering it possesses significant potential. The state plans to leverage these resources to meet its growing energy demand through the Energy Commission Enactment 2023 (Amendment 2024), the Electricity Supply Enactment 2024 and the Renewable Energy Enactment 2024.
Similar to Sarawak’s determination to claim its rights to the oil and gas industry, Sabah also continues to strengthen its involvement in the oil and gas value chain through the Commercial Collaboration Agreement (CCA) signed with Petronas. Sabah’s efforts in participation and equity ownership have resulted in greater revenue sharing. Through the Sabah Local Content Council (SLCC), it is hoped that more opportunities will be given to the people of Sabah, particularly in that sector.
Sabah has achieved tremendous success in various areas over the past 5 years. Thus, the new chief minister who will lead the state is expected to exceed the people’s expectations. The prosperity of the state must be enjoyed by all levels of society, especially those who in the rural areas. With Sabah’s commitment to developing renewable energy, rare earth elements (REEs) are critical for renewable energy technologies, particularly for wind
turbines, electric vehicle motors and others.
As REEs are vital to the global economy, Sabah also has the opportunity to stand at the forefront of the global race for these high-tech materials. The new state government will face the immediate challenge of ensuring responsible, sustainable and transparent management of these resources. Let’s hope that the next Chief Minister is able to transform the dreams of Sabahans into tangible economic benefits and political stability for the people of Sabah.
Dr. Farahdilah Ghazali
Senior Lecturer,
School of Business and Economics,
Universiti Putra Malaysia
