Investors needed to boost manufacturing sector’s 7.5% contribution to GDP – Tangau

SMEs in Sabah have to seriously look into how they can make use of technology in order to enhance productivity and efficiency, said Deputy Chief Minister Datuk Seri Panglima Wilfred Madius Tangau.

“Technology can assist you to get the necessary certification as well as recognition. That is why I really want to collaborate with the Federal Government especially SIRIM to conduct a technological audit and I want the SMEs to work together with us so that both sides can grow together,” he said.

He said this in a press conference after launching the Platinum Business Awards 2018 roadshow on behalf of Chief Minister Datuk Seri Shafie Apdal yesterday.

Tangau also announced that the state government approved an allocation of RM50,000 to the association.

According to Tangau, who is Trade and Industry minister, the total annual GDP for Sabah was about RM80 billion.

“At this point in time contribution of the manufacturing sector to GDP is only about 7.5 per cent. In order for it to be a developed economy the contribution of the manufacturing sector must be at least 35 per cent.

“So the challenge to push it up to 35 per cent is quite great but it is doable. We need investors to come to Sabah especially to the key destinations like POIC Lahad Datu to invest in downstream processing and producing value added products.

“We have identified some of the key interests to boost investment especially pertaining to utilities, to infrastructure, and we are working on that and especially on logistics, which is a key element for Sabah,” he said.

Tangau said he hoped to sort out the issue of logistics especially for Lahad Datu as the government would like to see the east coast of Sabah as an industrial wealth in the future because a big chunk of the natural resources is in the east coast.

“We need investments and we need to attract investors but at the same time it is very important that we do the talents for industrialists, Sabah home grown industrialists. We want the SME to grow, move and be more dynamic. Perhaps they can look at various mechanisms how this can be done, they can collaborate and work with others who are already there.

“I am happy today that the SME Malaysia has expanded to Sabah and a chapter has been set up here. The state Government would like to collaborate with you and see how we could match the talents that we have to go into a lot of this. We want to see that the natural resources in Sabah as a blessing to us rather than a curse,” he pointed out.

Tangau added that in the past Sabah was characterized as an extracting economy and the state exported whole logs and CPO without processing them.

“We want to see more downstream processing. The state government decided to ban the export of whole logs because it wants to see them to be processed. But we want to see a win-win situation with all those concerned. We do not want to kill the goose that lays the golden egg.

“I think it is going to be a niche role for Sabah. For instance sabah can be a niche market for furniture. I have directed my officers to look into how we can facilitate, not to frustrate otherwise the industry will not grow.

“I want to make sure the certified forest management will be translated into premium prices. They have spent money to get certified therefore the product should have premium price to the key market,” he said.