12MP measures to increase Sabah, Sarawak annual GDP growth to 6.5 pct and 5.3 pct respectively

According to the 12MP document release by the Economic Planning Unit (EPU) today, Sabah and Sarawak's strategic locations, which are close to a majority of ASEAN countries as well as China and Japan, offered the two states huge potential in terms of economic opportunities and trade.

It said that leveraging on this, measures would be undertaken to provide a conducive ecosystem for economic growth.

"In promoting growth in the states, the focus will be given on more equitable industrial development, modernising the agriculture sector, strengthening the oil and gas subsector, enhancing the services sector and promoting the digital economy.

"The success of these initiatives will reduce socioeconomic disparities among regions in Malaysia," the document said.

It said the 12MP would look into strengthening the development of micro, small and medium enterprises (MSMEs) as a conducive ecosystem is vital to ensure its progressive and sustainable growth.

"For this purpose, efforts will be undertaken towards improving access to financing, enhancing resource-based activities, facilitating ease of doing business and boosting the market access of MSMEs whereby these initiatives will enhance their contribution to the economy," it said.

It said MSMEs would be encouraged to increase the sales of products and services through the adoption of technology and digitalisation.

The document said in establishing a conducive ecosystem as a prerequisite in promoting economic growth, efforts would be focused on leveraging regional economic corridors to play a more important role as an engine of growth.

Additionally, it said concerted efforts would also be undertaken in making Sabah and Sarawak the preferred investment destinations in the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) by leveraging on comparative advantages in both states.

"Measures will be undertaken to strengthen regional development strategies in ensuring a higher development impact," it said.

It said the development of rural areas in Sabah and Sarawak would be accelerated to close the gap between rural and urban areas with measures including the strengthening of growth enablers, re-energising rural economic activities and providing access to online businesses.

The document said in ensuring the better contribution of cities towards the development in the states, measures to accelerate urban development would focus on improving the development potential of cities, upgrading urban services and enhancing liveability.

"These measures will spur more development and contribute towards the wellbeing of urban dwellers," it said.

Meanwhile, it said green growth is also imperative in boosting sustainable socio-economic development through the expansion of the green market and would be promoted by accelerating green initiatives and conserving natural capital.

"These initiatives represent a systemic shift towards generating new economic opportunities, while minimising its detrimental impact on the environment, addressing climate change and ensuring natural resource sustainability," it added.