JANUARY 10 — I recently visited Sabah for a joint forum on poverty organised by the Ungku Aziz Centre for Development Studies (UAC), Universiti Malaya, and University Malaysia Sabah (UMS).

The minute we landed, I could see that Sabah has changed a lot since the last time I was there.

Kota Kinabalu is now a modern metropolis gleaming with impressive buildings and highways. I cannot say the same for the villages there though.

As we travelled to visit poverty reduction projects a few hours away from KK, we saw evidence of roads crying for better days.

There is no doubt that Sabah is still mired in abject poverty. It is not that the government is not doing anything.

The government has been injecting funds to alleviate poverty. But I can see the impact is dismal.

Is there hope for Sabah? I believe this Borneon state which once thrived on rich timber resources can rise again as an economic force.

Sabah, a state in Malaysia rich in natural resources and cultural diversity, has immense potential to become a strong economic power.

Leveraging its strengths while addressing its challenges can create a robust and sustainable economic pathway.

Experts suggest there are some key areas to focus on. Diversification of the economy is one.

Sabah is renowned for its natural beauty, including Mount Kinabalu, pristine islands, and diverse wildlife. By investing in sustainable tourism, improving infrastructure, and enhancing accessibility, Sabah can attract more international and domestic tourists.

In agriculture and aquaculture, the state can capitalise on its fertile land and marine resources by modernising agriculture, promoting high-value crops, and expanding its aquaculture sector.

Examples include seaweed farming, shrimp cultivation, and tropical fruits.

The seafood hawker centre in KK is an attraction. And there is the potential for renewable energy.

With abundant solar and hydro potential, Sabah could lead in renewable energy projects, reducing dependency on fossil fuels and creating a green economy.

Not to mention the widely debated ocean thermal energy, OTEC, which is unique to Sabah.

Infrastructure development is crucial. Connectivity is sorely needed.

By upgrading road networks, ports, and airports, the state can improve trade and tourism.

The Pan Borneo Highway is a step in the right direction, but further investments in transport infrastructure are essential.

Digital economy is next. It is a new world order. Ensuring high-speed internet access in rural and urban areas can stimulate growth in the digital economy, including e-commerce, education, and remote work.

Sabah’s oil and gas reserves, timber, and palm oil industries are significant contributors to its economy.

Ensuring sustainable and transparent management of these resources can boost revenue while protecting the environment.

Encouraging downstream industries, such as refining and value-added products, can increase economic value and create jobs.

FDIs should be invited to partner local companies. Investment in education, vocational training, and upskilling is crucial to prepare Sabah’s workforce for emerging industries.

Whilst collaboration with universities and industries can foster research and innovation, particularly in agriculture, biotechnology, and marine sciences.

Sabah’s strategic location within South-east Asia makes it a gateway for trade with neighboring countries like Indonesia, Brunei, and the Philippines.

Establishing SEZs or free trade zones can attract FDIs, particularly in manufacturing and logistics. Transparent governance and streamlined regulations are necessary to attract investors and reduce bureaucratic hurdles.

Addressing issues such as land ownership disputes and ensuring equitable wealth distribution can foster social stability and economic growth.

With its rich biodiversity, Sabah can position itself as a global leader in conservation and eco-tourism. Initiatives such as reforestation, marine conservation, and carbon credits can create new revenue streams.

Preparing for climate change impact, such as rising sea levels and erratic weather, is critical for long-term economic stability.

Empowering indigenous communities through participation in economic activities, cultural tourism, and land rights recognition can drive inclusive growth.

Promoting cultural heritage as part of Sabah’s identity can enhance tourism and international recognition.

Admittedly, the potential for Sabah is immense. By focusing on these strategies, Sabah can transition from being a resource-dependent state to a diversified and sustainable economic power.

The key lies in balancing development with environmental conservation and inclusivity, ensuring long-term prosperity for its people. Time to get serious!

* Professor Datuk Dr Ahmad Ibrahim is an Associate Fellow at the Ungku Aziz Centre for Development Studies (UAC), Universiti Malaya, and may be reached at uacds@um.edu.my

** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.