I CRY over Sabah’s political fragmentation. A major reason for Sabah’s economic problems is the low quality of Sabah’s leaders.
Too many politicians who claim to be leaders are either ignorant of basic economics or have no interest in economic development, or worse, have selfish interests.
Needed urgently are leaders who understand economic development, can produce a realistic plan and implementation strategy. They must grow Sabah’s economy to benefit Sabahans.
Sabah leaders’ focus on the present economic realities in the 2025 election is shallow.
Judging from the current style of campaign speeches and political manoeuvrings, most Sabah leaders are still living in the 1990s, 2000s, at best in the 2010s.
Not realising or refusing to accept the reality that the AI age and the following factors are already realities. Very frightening prospects.
[1] The profile of Sabah voters has undergone substantive changes.
[i] Majority are below 40, many are first-time 18-year +-old voters.
[ii] Much better educated, experts in social media.
[iii] Proactive, no longer accepting lame excuses from politicians, impatient and vociferous in their critiques to the extent of daring to hold public demonstrations.
[vi] The older generation is no longer the determining political force.
Which leader is their hope for their future and addressing their concerns?
[2] Sabah’s economy is undergoing generational transformative change.
[i] The Oil and gas industry is growing rapidly.
[ii] The manufacturing industry is also growing rapidly.
[iii] Tourism has fully recovered from Covid.
[iv] MICE is making steady progress.
[v] Some more investors want to establish new industries.
[vi] Shortage of suitable, qualified Sabahans to fill vacancies is becoming a pressing issue.
[vii] Sabah’s Blue Economy, which is the future for Sabah, is in progress.
[viii] Largest ever inflow of investment. The total of approved and being processed is at RM58b.
Which leader is providing leadership to elevate these opportunities?
[3] Sabah’s financial position is gaining strength.
[i] Revenue is growing impressively, almost double since 2020.
[ii] State reserve is at an all-time high of RM8 billion plus.
[iii] Revenue base has been expanded from RM4b to reach RM8b.
[4] New era of Sabah/Federal relationship.
Increasingly, Sabahans are waking up to the less-than-satisfactory Sabah/Federal relationship. Young Sabahans demand an equitable relationship.
[i] MA 63, including 40% revenue, is being acted on by the Sabah government and SLS [Sabah Law Society].
[ii] SABAR is taking the Federal Government to court over TSA 2012.
[iii] PMX has agreed to increase parliamentary seats for Sabah and Sarawak. Will it be implemented? When?
[iv] Sabah and Petronas have signed the CCA [Commercial Collaborative Agreement] whereby Petronas is obligated to provide jobs/training for Sabahans and participation for Sabah companies. Both have increased tremendously.
[5] National development.
[i] The Political situation in Malaya is very fluid.
[ii] Use of religious, racial bigotries and political bullying is worrisome for Sabahans.
[iii] The federal government is giving insufficient equity for Sabah, i.e. insufficient development fund and representation.
[iv] Sabah has little or no representation in important economic policies and their implementation.
[v] Sabah has little or no representation in Federal GLCs and agencies.
[6] Global development.
Most Sabah leaders seem to be unaware of how Sabah is being affected by global development.
[i] Trade war and raging tariffs by the US. China is championing for the Global South countries.
[ii] The multipolar global power system has already become a reality.
[iii] Saddening that most Sabah leaders seem to know hardly anything about Sabah’s increasing geopolitical importance, or leverage it for Sabah’s benefits. Truly like frogs in a well.
[iv] Most Sabah leaders don’t focus on potential economic opportunities on Sabah’s proximity to the rich oil and gas deposits in the South China Sea [Spratly Islands] and to the Philippines, where the US and China are bitterly contesting for influence.
Which leader can provide leadership directions on the above items and others that deserve serious attention as they have huge impacts on Sabah’s economy in the immediate, medium and long terms.
Most Sabah leaders lack interest in looking into Sabah’s following important economic problems.
Instead of childish slandering and accusations, Sabah leaders should focus on issues, in addition to those in item 1 above, that have direct impacts on Sabahans’ life and future generations. Sabah has many such issues to be resolved. Here are some examples:
[1] Mind-set change.
This is the single most critical factor that is blocking progress in Sabah.
[i] Politicians should change their mindset of selfish politics and corrupt practices. They should put Sabah and Sabahans first, not themselves.
[ii] Sabahans must demand high standards of accountability, transparency and respectable behaviour from politicians.
[iii] Sabahans must transform from negativity to positiveness. There must be a heightened sense of ownership of Sabah. i.e. Sabah is ours to protect, don’t let outsiders control us. Less complaining, start grabbing present opportunities and create new ones.
[2] Enhancement of the delivery service system by government departments and agencies.
[i] Average Sabahans are enduring/suffering from endless waiting, delays, procrastinations and indifference. Sabahans are wasting a lot of time and energy chasing for trivial approvals which, in most cases, are routine in other countries.
[3] Food security/sufficiency.
[i] Politicians should have sleepless nights over Sabah’s precarious food security/sufficiency problems.
[ii] Very scary that Sabah is only 21% self-sufficient in rice. Sabah should be 100% self-sufficient with a surplus to export.
[iii] Also frightening that Sabah has zero sufficiency in corn for animal feeds. Sabah is having to import corn from Argentina, Brazil and India when Sabah should be self-sufficient.
[iv] Sabah should compel all oil palm plantations to produce food [meat, vegetables and fruits].
[vi] Where and how can Sabah get food if there is a war in the South China Sea?
[4] Inflation.
[i] The Ringgit in Sabahans’ pockets is shrinking rapidly. RM10 is like RM1 ten years ago. Young families are suffering the most.
[ii] Sabah’s housing, food, and transport are the highest in Malaysia.
[iii] Sabah has the highest cost of living and the lowest standard of living.
[iv] Sabah cost of doing business is too high. Hidden costs and/or costs due to procrastination by bureaucrats are unacceptable.
[5] Competitiveness.
[i] Sabah’s competitiveness is very weak due to low productivity, high cost [especially hidden cost], slow bureaucracy, insufficient logistics, infrastructure, and power. Delays are very expensive!
[6] GLCs and their monopolistic malpractices.
A few GLCs have improved, like SMJ Energy, SCC, SEC, and SOGDC. Many have yet to. These are dragging down Sabah’s economic performance.
[7] Many areas under the Federal need urgent additional funding and service improvements.
[i] Education, health, and management of KKIA, Tawau.
[8] Sabahans must be empowered to retake ownership of our economy.
[9] Neglect, lack of attention to women’s development needs urgent addressing.
Little attention and appreciation for women’s role and their potential in economic development in Sabah.
[i] There should be a Ministry for Women in Sabah after the 2025 election.
[ii] Channel all family/children-related aids to women. Don’t give them to men. Women are better managers; more concerned about family welfare and their children’s future, especially in health and education.
[10] Sabah must strengthen the roles of Sabah’s businessmen/investors, youth and professionals.
[11] Sabah MUST compel the oil palm industry to add value to its CPO. No downstream at all now. Increase land assessment on all plantations with 1,000 acres or more to compensate for their recalcitrance to go downstream.
[12] Sabah leaders must pay special priority to grow Sabah’s private sector. Only a strong private sector owned and controlled by Sabahans can ensure Sabahan economic ownership.
4. Many candidates for the 2025 election are unsuitable to lead. The political disunity of Sabah leaders will doom Sabah.
[1] Sabah has not been blessed with many dynamic leaders in economic leadership. Most of them are for themselves. Their lack of leadership is obvious in their campaign speeches, most of which are devoid of economic sense.
[2] It is obvious at this stage. Many Sabah political leaders are not interested in uniting.
5. Fragmentation before the election. Is unity possible after the 2025 election?
In politics, there is no permanent friend, no permanent enemy, only permanent self-interest.
Will Sabah leaders choose to unite for the sake of Sabahans’ interest over self-interest after the 2025 election?
No unity means Sabah’s future will be bleak. — October 6, 2025
John Lo is a concerned ex-banker