Sabah posts 5.1% GDP growth to RM88.8 billion, driven by services and construction

Sabah achieved a 5.1% rise in gross domestic product last year, the strongest performance in six years, bringing the total to RM88.8 billion. Growth was led by the services sector, which expanded by 4.5%, manufacturing by 5%, and a remarkable 28.3% jump in construction activity. Chief Minister Hajiji Noor said the state now has momentum and must translate it into stronger local businesses, higher-value industries, and improved employment opportunities.

He also noted a record development allocation of RM12.02 billion under the 13th Malaysia Plan, covering 933 new projects and 240 extensions, to boost competitiveness and attract investors. Deputy Chief Minister and Finance Minister Masidi Manjun read the chief minister's remarks at the Sabah edition of Kembara Borneo 2026, emphasizing the need to nurture creativity and entrepreneurship, especially among youth, and to leverage Sabah's agricultural, blue-economy and downstream potential.