KOTA KINABALU: Sabah is aiming for a logistics hub status and should now seriously pursue and move this agenda to the forefront, said Chief Minister Datuk Seri Musa Haji Aman.
The state’s inherent strength is its strategic location, being nearest to regional economic powerhouses, thus offering substantial cost-advantages for trade among the regional economies, Musa said in his speech at the Federation of Sabah Manufacturer (FSM) dinner here last night.
Noting that there is a lucrative consumer market of 60 million people in the Brunei, Indonesia, Malaysia, Philippines–East Asean Growth Area (BIMP-EAGA), he said Sabah has what it takes, including political stability and agriculture resources, to elevate itself to a logistics hub status.
He said the State Government is aware that FSM, along with trade chambers and related associations, has raised the issue of high cost of doing businessin the state.
He said the fact that Sabah occupies a unique geographical position within Malaysia, being separated from the peninsula by the South China Sea, means that the most economical movement of cargo between the two regions is via sea.
With Port Klang being the current logistics hub, these factors are among several that contribute to the high cost of doing business in Sabah and have an impact on the state’s industrial growth, he said.
Musa said competition is rife and changes are taking place very quickly in the world of business and trade, with neighbours in Asia competing to become logistics hubs following increasing demand from within the region and China’s meteoric rise as one of the largest economies in the world.
Increasing de-regularised global trade practices is another aspect that has to be considered as we work towards becoming a hub, he added.
“Today’s global scene is characterised by such dynamism that if we do not act now, the window to Sabah’s economic prosperity will close before us, to the advantage of our competitors.
“We will need all quarters to work extra hard if we intend to further move industrialisation and also to become a logistics hub.
“Hub status for Sabah will eventually benefit the nation, and since it is a task of national significance, it will require both federal and state agendas to be aligned,” he said.
On a related note, Musa said the State Government has remained business-friendly and open to constructive feedback and suggestions from the private sector.
He stressed that the private sector is a key player and a partner in driving the state’s economy, and their views are important to the Government.
“I would like to assure FSM that the Government continues to take note of matters that are raised by your organisation, and we always strive to find solutions that support the growth of the manufacturing sector,” he said.
Commending FSM for its contribution in building and strengthening the state’s manufacturing sector, he said the organization has continued to champion issues raised by manufacturers, without losing focus on working towards achieving the state’s development aspiration as outlined in the Halatuju and other plans including the national Economic Transformation Programme.
“If anything, I believe FSM is even more profoundly determined to push forward through bold but workable solutions as mirrored in its theme for this year, “Transforming Sabah Into A Hub.” This theme serves as a platform to steer Sabah’s economy to the next level, and propel it to greater socio-economic heights and prosperity.
“Some of the previous strategies to address industrialisation in Sabah may not have produced the expected results, and as such, it is timely to seek different approaches in addressing issues by factoring in economic realities in Sabah and the region,” he said.