Economy of Sabah: An Overview
Sabah’s economy is historically rooted in its abundance of natural resources. While the state initially relied on timber, the economic landscape has evolved significantly. Today, the economy is anchored by the Services sector, which is the largest contributor to the state's Gross Domestic Product (GDP).
Key Economic Sectors
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Services (Tourism & Commerce): This is the engine of the modern Sabahan economy. It is driven primarily by a thriving Tourism industry, leveraging assets like Mount Kinabalu and Sipadan Island, as well as wholesale, retail trade, and government services.
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Mining & Quarrying: The second-largest contributor, dominated by the export of Crude Petroleum and Natural Gas (including LNG).
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Agriculture: Sabah remains a powerhouse for food and commodity production, with Palm Oil being the primary export earner. The state is also a key producer of cocoa, rubber, and fisheries.
Exports & Industrialization
The state actively exports Crude Petroleum, Palm Oil, and Liquefied Natural Gas (LNG). Concurrently, the Manufacturing sector is expanding as the state shifts focus toward downstream processing, turning raw materials into finished goods - to create high-value jobs.