KUDAT (Oct 18): The Sabah Cabinet has approved 24-hour operations for the Sepanggar Bay Container Port (SBCP) to address logistics congestion, but implementation depends on the industry ecosystem's overall readiness, as well as the readiness of related government departments and agencies.

Deputy Chief Minister III Datuk Ewon Benedick, also industrial development, entrepreneurship and transport minister, said supply chain coordination is crucial because, despite the policy, most local depots and factories are still not ready to operate around the clock.

“I view this port congestion as a positive indication that Sabah's economic activity is rapidly growing, but we need to ensure that the entire transport ecosystem is ready before full operation hours are enforced.

"Although big firms such as the SBH Kibing Solar factory in Kudat operate 24 hours with 86% of its workers being local, there are other factory destinations and container depots that still end operations as early as 5pm," he said.

He said this to reporters on the sidelines of the Gabungan Rakyat Sabah Convention, officiated by its chairman and Chief Minister Datuk Seri Hajiji Noor here Sunday.

To address the issue, he is now chairing a monthly task force meeting with government agencies and shipping industry players to monitor the implementation of 10 interim action plans, including the provision of a temporary trailer parking zone at the Kota Kinabalu Industrial Park (KKIP).

Ewon said the task force will ensure the port operates smoothly while looking forward to the SBCP physical expansion project, which has now reached 68.1 % and is expected to be fully completed by October 2027.

"The rise in trade volume saw Sabah Ports Sdn Bhd's container handling increase 6.07% to 532,391 twenty-foot equivalent units (TEU) in 2025, with SBCP handling 74.6% or 396,964 TEU, before recording 416,854 TEU in the first nine months of this year," he said.

As for initiatives under the “Sabah First” pillar, he said the Sabah Cabinet approved a new policy last August allowing local companies to pay off KKIP's industrial land lease annually for 30 years compared to the old terms which demanded full payment within two years.

To support entrepreneurs’ working capital, his ministry is piloting a strategic collaboration with the Credit Guarantee Corporation and Syarikat Jaminan Pembiayaan Perniagaan to provide commercial financing guarantees to local companies looking to invest in industrial parks.

Ewon said investors' confidence in the state's potential proved strong as Sabah recorded approved manufacturing investments worth RM25.59 billion, including 101 projects and generating 9,157 job opportunities from September 2020 to June 2026.

He said capital inflows were led by foreign direct investment of RM19.60 billion and domestic direct investment of RM5.99 billion, contributing to manufacturing gross domestic product (GDP) of RM6.4 billion in 2025.

In line with the Hala Tuju Sabah Maju Jaya 2.0 goal, the state government aims to increase the manufacturing sector's contribution to GDP to between RM7.5 billion and RM8.0 billion, with a new investment target of between RM8 billion and RM10 billion.

The growth will be supported by a mega project in the Sipitang Oil and Gas Industrial Park, including the Esteel green steel investment worth RM6.59 billion and the PFLNG 3 floating liquefied natural gas plant worth RM12 billion, scheduled to be operational in the fourth quarter of 2027.

To expand the new economic zone, the state government began the land acquisition process to develop the Kota Belud Industrial Park, covering 5,437 hectares for high technology, in addition to preparing a master plan for the Kudat Blue Economy Industrial Park, covering ​​485.6 hectares.

In the oil and gas chain, Ewon said the Sabah Oil and Gas Services and Equipment Roadmap 2026-2030 was set in motion to enable more local vendors to seize opportunities beyond the 499 service contracts reached so far.

At the grassroots level, his ministry has strengthened the position of 71,219 micro, small and medium enterprise firms (SMEs) through the SME-UP assistance scheme, reaching 5,879 beneficiaries, and organised the Hawkers and Small Traders Day in Beluran, Kota Marudu, Membakut and Kota Belud.

To ensure long-term connectivity, his ministry has finalised the terms of reference for the Sabah Integrated Transport and Logistics Master Plan, covering land, sea and air modes, supported by a development ceiling of RM500.1 million under the 13th Malaysia Plan.

Uploaded by Magessan Varatharaja