Blue economy a game-changer for Sabah, says Hajiji

 

Sabah chief minister Hajiji Noor said the state expects its tourism sector to generate RM25.92 billion in revenue over five years. (Bernama pic)

KOTA KINABALU: Sabah chief minister Hajiji Noor says the state intends to rely on the blue economy to generate significant growth in revenue moving forward.

“This blue economy is a game-changer for Sabah,” he told FMT in an interview.

The blue economy refers to the sustainable commercialisation of marine resources.

Hajiji Noor.

Last year, Hajiji expressed interest in exploring blue economy ventures in collaboration with foreign investors in a bid to boost the state’s finances, improve living standards and create jobs while preserving Sabah’s marine ecosystem.

“That is why a special committee has been established to manage projects or proposals related to the blue economy.”

With an expansive coastline of over 1,000km, Hajiji said Sabah’s blue economy could be built around fisheries and aquaculture, shipping and transport logistics, tourism, renewable energy, mineral resources, biotechnology and pharmaceuticals, and blue carbon.

The Sabah government estimates that investment into three blue economy industries with the highest potential could create more than 16,200 job opportunities in the state.

It has identified port and shipping, fisheries, and tourism as the sectors to focus on.

Of the three, the state government expects the tourism industry to generate the highest returns, with revenue estimated at RM 25.92 billion over five years.

“We will hold an international blue economy summit this year to promote Sabah’s potential in the field,” said Hajiji.

“We might even consider setting up a government-linked company (GLC) to oversee this since it has significant potential to add to the state’s revenue.”

Separately, Hajiji revealed that Sabah’s finance ministry will look into several state-owned GLCs that are operating at a loss.

According to the state finance ministry, as many as 17 of the 28 GLCs in which the Sabah government holds a significant stake have recorded losses.

Hajiji said the state government is reviewing the operations and management of all loss-making GLCs.

“Perhaps we will restructure management, evaluate leadership, and consider shutting down those that are no longer viable to prevent burdening the government,” said Hajiji.

He said financial reports on all loss-making GLCs will be presented at the state assembly. - FMT