Sabah prioritises ‘monkeys over coal’

KOTA KINABALU: It was Sabah’s choice to prioritise “monkeys over coal,” that led to the state having some of the largest permanent forest reserves in the country, says Finance Minister Datuk Seri Masidi Manjun (pic).

The former Tourism, Culture and Environment Minister said 47%, or 3,575,034.573ha, of Sabah, is preserved as permanent forest reserves.

About 63% of Sabah’s 7.4mil ha land remains forested, including forest reserves, parks, wildlife sanctuaries and state land forests.

“Sabah holds some of the world’s finest coal deposits, yet there is no coal-powered plant in the state because environmentally conscious Sabahans stood firmly against it.

“When faced with the choice between preserving our natural heritage and exploiting coal, the people chose the former,” he told the crowd at the Credit Guarantee Corporation (CGC) Appreciation Night on Monday (Sept 2).

Masidi said that despite ongoing development, Sabah is committed to retaining its permanent forest reserves.

He also said that the state’s economy has rebounded and grown since the Covid-19 pandemic, driven by a bottom-up approach to socio-economic development.

Key sectors such as agriculture, tourism, and manufacturing have expanded, significantly boosting Sabah’s economic output.

“However, despite these positive developments, there is still much we can do collectively to accelerate economic growth and create more job opportunities in Sabah, particularly for micro, small, and medium enterprises (MSMEs),” he added.

Masidi praised MSMEs’ vital role in driving innovation, job creation, and community development in Sabah, describing them as the backbone of the community, embodying the entrepreneurial spirit and resilience of the people.

“Across Malaysia, including Sabah, MSMEs account for around 7.3 million jobs, underscoring their crucial role in employment and supporting the local economy. They contribute approximately 39.1% to Malaysia’s GDP, with significant input from various states, including Sabah,” he said

Masidi further explained that MSMEs are integrated into the economic development plan under the state government’s Sabah Maju Jaya initiative, which aims to drive economic growth and development across the state.

This initiative emphasises their role in diversifying the economy, creating jobs, and fostering innovation.

The initiative supports MSMEs with financial facilities, encourages the adoption of new technologies, and improves infrastructure to enhance market access.

Additionally, it promotes sustainable practices, ensuring that MSMEs contribute to and benefit from Sabah’s economic growth while aligning with environmental conservation goals.

Masidi also noted CGC’s pivotal role in the development and growth of MSMEs, which currently constitute 97.4% of the country’s business enterprises.

“According to CGC’s latest 2023 Annual Report, the corporation has provided over RM95.4bil in financing to more than 380,000 MSMEs since its inception on July 5, 1972. This demonstrates CGC’s unwavering commitment to ensuring the success of Malaysian MSMEs through its sustainable initiatives in providing customised financial solutions and strategic guidance,” he said.

He added that financial institutions remain the primary source of financing for SMEs, providing over 90% of total funding, a process facilitated by CGC through various guarantee schemes.

“A robust credit guarantee scheme is essential in filling the financing gap for small and medium-sized enterprises, which CGC has been delivering since its inception in 1972,” Masidi said.