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Sabah.LEAP Long Term Strategic Action Plan 2035

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Sabah.LEAP Long Term Strategic Action Plan 2035 Briefing Highlights on Sabah.LEAP Long Term Strategic Action Plan 2035 By Unit Perancang Ekonomi Negeri (UPEN) Presented for Economic Corridors Development Programme by ADB on 19 July 2018 1 BRIEF BACKGROUND The main objectives of Sabah.LEAP were: (i) To provide a long term strategic development roadmap for Sabah for the period 2016 to 2035; (ii) To elevate the State into an innovative, knowledge- based, competitive and resilient economy; (iii) To develop Sabah into an attractive high end environmentally friendly investment destination; (iv) To position Sabah as a world class eco, wellness, health and sports tourism destination; and (v) To propel Sabah towards the upper middle income and subsequently to high income status. 2 BRIEF BACKGROUND Sabah.LEAP contains a holistic vision that provides the long term strategies or general forward looking directional guide for realising the Vision and associated targets. Sabah.LEAP is not meant to be too specific so as not to be constraining or restricting the State Government nor the private sector. Sabah.LEAP also lays out the “must haves” or critical factors required in order to leap the State onto a higher phase of development. 3 LAND AREA 73,620 square km POPULATION BY AGE GROUP 2016p TOTAL POPULATION ('000) COASTLINE 1,440 km 800 SOIL FERTILITY 30% suitable for 600 agriculture 400 development FOREST COVER About 58% of 200 total land area 0 ALL AGES TOTAL • 3.80 million POPULATION (2016e) • 3rd highest populated state • 12% of total Malaysia’s population • 75.8% of the population is less than 40 years of age • 20-59 years old working group make up about 58.2% of the total AVERAGE 1.7% p.a population POPULATION (2011-2016) •20-39 years old young working group make up 39.6% of the total GROWTH RATE population YOUNG POPULATION AND YOUNG LABOUR FORCE UNEMPLOYMENT 5.4% (2016) RATE POVERTY RATE 2.9 % (2016) Sabah’s Strengths • Strategically and centrally located in the ASEAN and Asian region • Strategic gateway to ASEAN and BIMP-EAGA with a market of of 580 mil and 73 mil respectively • Regional hub and gateway to East Asian and the southern Asia Pacific region (Australia and beyond) • Potential transhipment and aviation hubs for the region STRATEGIC LOCATION Sabah’s Strengths • Rich in natural resources (oil & gas, fertile agriculture land, minerals, forest, marine) • Largest crude palm oil producing State in Malaysia • Largest producer of cocoa beans in Malaysia • Largest aquaculture producer in Malaysia • Sits on one of the largest oil reserves in Malaysia (9 new oil discoveries in the span of 2002-2005) • Rich biodiversity (flora, fauna and marine) • Nation’s largest Ramsar site – 78,803 ha. • 58% still under forest cover and part of Heart of Borneo Initiative, oldest tropical rainforest • Rich marine resources – located at the Sulu Sulawesi Marine Eco region, Coral Triangle and RICH RESOURCES global center of marine biodiversity. 75% of Malaysia coral reefs of 3,600 sq km found in Sabah. • Largest marine Park in Malaysia – Tun Mustapha Park (898,763 ha). Has 6 marine Parks in Sabah. Sabah’s Strengths Cultural Diversity -more than 42 ethnic groups -Best example of 1 Malaysia GROSS DOMESTIC PRODUCT GDP: Real GDP Growth Rate %, 2011-2016 RM 73.8 BILLION (2016P) Sabah Malaysia 6.0 6.1 RM 58.1 BILLION (2010) 5.5 4.7 5.0 5.0 4.7 4.2 3.3 INCOME PER CAPITA: 3.2 2.1 RM 21,081 (2016P) 1.5 RM 17,831 (2010) Note: P = preliminary 2011 2012 2013 2014 2015 2016P % Contribution to GDP By Sector, 2016 40.8 Services 36.6 19.1 Agriculture 27.3 2016 2010 29.6 Mining and Quarrying 24.2 7.5 Manufacturing 8.3 2.6 Construction 3.2 Source: Department of Statistics, Malaysia GDP BY STATE 2016 SELANGOR (RM251.6BIL) WP KUALA LUMPUR (RM169.9 BIL ) SARAWAK (RM108.8 BIL) JOHOR (RM104.5 BIL ) SABAH (RM73.8 BIL ) PULAU PINANG (RM73.7BIL ) PERAK (RM60.4 BIL ) Sabah ranks no. 5 PAHANG (RM46.8 BIL ) NEGERI SEMBILAN (RM38.8 BIL ) KEDAH(RM37.2 BIL ) MELAKA (RM33.2 BIL ) TERENGGANU(RM28.6 BIL ) KELANTAN (RM20.7 BIL ) WP LABUAN (RM5.5 BIL ) PERLIS (RM5.1 BIL ) Source: Department of Statistics, Malaysia EXTERNAL TRADE RM Million 2010 2011 2012 2013 2014 2015 2016Pp Import 27,913.3 32,772.1 37,427.1 36,759.4 35,460.5 30,242.3 28,957.2 Export 43,613.7 49,395.1 47,684.8 45,307.8 47,406.5 40,837.5 41,400.1 Balance of Trade 15,700.5 16,623.1 10,257.7 8,548.4 11,945.9 10,595.2 12,443.0 Note: p = preliminary Source: Department of Statistics, Malaysia EXPORT OF MAJOR COMMODITIES, 2016p Crude Petroleum 37.0% Palm Oil 31.2% Others 15.8% Palm Kernel Oil 6.7% Methanol 4.3% Plywood 2.7% Hot Briquetted Iron 1.2% Others: Palm Kernel Cake, Palm Based Oleochemical, Refined Petroleum Prawn, Fresh or Frozen 0.7% Products, Sawn Timber, Sawlogs, Veneer Sheets, Mouldings, Uncoated Printing & Writing Paper Rubber 0.4% IMPORTS OF MAJOR ITEMS, 2016p Machinery and Transport Equipment 37.3% Mineral Fuels, Lubricants, etc. 9.6% Manufactured Goods 11.9% Chemicals 11.1% Food 14.8% Others: Beverages & Tobacco, Crude Materials, Animal & Vegetable Oil and Others Fats, Miscellaneous Manufactured 15.3% Articles, Miscellaneous Transactions and Commodities Source: Department of Statistics, Malaysia AGRICULTURE LAND USE BY AGRICULTURE CROP CRUDE PALM OIL PRODUCTION (HECTARES) (TONNES) Palm Oil 1,647,001 6,055,569 5,776,459 5,722,928 Rubber 148,133 5,542,649 4,847,450 Paddy 43,536 Coconut 16,491 % SHARE (2015P): Fruits 16,737 Oil Palm alone contributed about 87% Others 589 Cocoa 7,134 Note: Others include coffee, sugar cane, tea, Vegetables 4,026 tobacco, cash crops, spices etc Note: p = preliminary 2012 2013 2014 2015 2016 Source: Sabah Agriculture Department, Department of Statistic, Malaysia AGRICULTURE GROSS FISHERY PRODUCTION, 2014 & 2015 SELF-SUFFICIENCY IN FOOD, 2014P (%) 2014 2015 106% 100% 100% 100% Production Quantity Wholesale Quantity Wholesale 85% (Tonnes) value (Tonnes) value (RM’000) (RM’000) Marine Fish 214,676 1,043,112 175,443 902,476 50% Brackish 21,483 385,867 16,900 301,097 Water Fish 23% 12% Fresh Water 4,109 49,176 4,196 54,159 Fish Rice Fruits Vegetable Seaweed 245,332 81,460 260,760 57,338 Beef Pork Poultry Culture Egg Milk TOTAL 485,602 1,559,616 457,300 1,315,072 Note: p = preliminary Source: Sabah Agriculture Department, Sabah Fishery Department, Sabah Veterinary and Livestock Department TOURISM Tourism Receipts TOURISM ARRIVALS: TOURISM RECEIPTS: RM6.7 Bil RM7.5 Bil RM5.3 Bil RM6.63 Bil RM6.60 Bil 3.427 Mil (2016) RM 7.5 Bil (2016) 7.9% 13.5% 3.176 Mil (2015) RM 6.6 Bil (2015) 2012 2013 2014 2015 2016 Top Ten International Arrivals To Sabah 2016 Country Percentage of Total Tourism Arrival International Arrivals 3,383,243 3,427,908 1. China (Including Hong 33.2% 3,230,645 3,176,226 Kong and Macau) 2,875,761 2. South Korea 17.5% 3. Indonesia 14.4% 4. Brunei 8.1% 5. Taiwan 4.9% 6. UK & Ireland 3.2% 7. Philippines 2.9% 8. Australia 2.7% 9. Japan 2.4% 2012 2013 2014 2015 2016 10. Singapore 2.0% International 941,765 1,089,320 996,522 978,426 1,128,776 Source: Sabah Tourism Board Domestic 1,933,996 2,293,923 2,234,123 2,197,800 2,299,132 MANUFACTURING Approved Investment in Manufacturing Sector Manufacturing Sector Contribution to GDP (RM Billion) RM5.4 Bil RM3.5 Bil RM3.0 Bil 2016 RM5.5 Bil RM2.4 Bil RM1.2 Bil RM0.7 Bil 2015 RM5.74 Bil 2011 2012 2013 2014 2015 2016 2014 RM5.73 Bil 201 2012 2013 2014 2015 2016 1 Number of 33 30 35 38 35 58 2013 RM5.3 Bil Project Applications Approved 2012 RM5.1 Bil Potential 2,5 2,896 2,333 2,205 1,361 5,070 Employment 52 Source: Malaysian Investment Development Authority & Department of Industrial Development and Research Source: Department of Statistic, Malaysia EMPLOYMENT CONTRIBUTION BY INDUSTRY (%) 35.3 Agriculture 31.9 16.5 Increase in Wholsale and Retail Trade 17.8 employment 8.3 Manufacturing 9.7 contribution: 8.4 Construction 7.2 Wholesale and 4.6 Retail Trade Public Admin & Defense 4.7 5.5 Manufacturing Education 4.8 Accommodation and Food & Beverage 6.4 Public Admin & Service Activities 7.7 D e f e n s e 0.4 Mining&Quarrying 0.4 Accommodation 14.6 a n d Food & Others 15.8 B e v e r a g e S e r v i c e 0 10 20 30 40 A c t i v i t i e s 2015 2016 Total employed : 1,771,100 (2015) Total employed : 1,823,700 (2016) Source: Department of Statistics, Malaysia Key Development Challenges 1 To increase the value chain of economic activities 2 To develop more new growth sectors to spearhead growth 3 To minimise environment and biodiversity degradation 4 To reduce urban-rural socio-economic disparity 5 To address foreign workers and illegal immigrants issues 6 To produce high skilled workers and reduce brain drain 7 To improve provision of infrastructure & utilities, connectivity and reduce logistic cost 8 To further beef up security and minimise security concerns 9 To embrace and prepare for Industrial Revolution 4.0 Current Key Economic Challenges 1 Slow recovery in most economies globally – emerging economies 2 China factor – slower growth and imposition on outflow of funds from China and China-US trade war 3 Slow recovery in prices of commodities including CPO 4 Cautious consumer spending 5 Marginal strengthening of the Ringgit 6 Increasing cost of living 7 Creation and empowerment of more entrepreneurs 8 Lack of affordable housing Sabah.LEAP Long Term Strategic Action Plan (2016-2035) BRIEF SUMMARY HIGHLIGHTS OF THE CONTENT OF THE PLAN 19 SABAH LONG TERM STRATEGIC ACTION PLAN (SABAH.LEAP) 2035 20 SABAH.LEAP COMPONENTS BY POLICY AREA Dynamic, competitive, stable and sustainable economic growth, fully linked to the global economy Economic By 2035, the A vibrant and empowered private sector, fuelled by people of entrepreneurial zeal and attracting substantial Sabah will lead investment productive and Advanced education, healthcare, infrastructure, meaningful utilities, ICT and skilled human capital, providing fair lives in and equitable access to the people of Sabah harmony with nature, Maintain Sabah’s cultural heritage and diversity Social conserving it for future generations Safe and secure environment and supported by a vibrant Management and conservation of Sabah’s natural Environmental and sustainable resources economy.
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