PM Launches RM31 Billion Steel Manufacturing Project

Investment in Sabah has gone through unprecedented growth over the last several years. The industrial centres have expanded, and more centres are needed to accommodate the growth and its spillovers. The Sipitang Oil and Gas Industrial Park (SOGIP) and the Kota Kinabalu Industrial Park (KKIP) have seen increased tenancy in the past four years. In response to the growth trend, the State Government has approved three new industrial parks in Kota Belud, Beaufort and in Kudat for the Blue Economy Industrial Park. Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor said that the development trend is on track as Sabah continues to explore new horizons to accommodate more investment.

“I have stressed that Sabah will always remain investor-friendly, and we have implemented policies to attract more investors. We are committed to create a conducive space that nurtures investments and fosters collaboration,” Hajiji said. “We understand the importance of creating a stable, transparent, and supportive environment for investments to flourish.” Hajiji said that arising from more investment, the employment of locals is paramount.

“I want industry players to invest in the training and development of our local work force and to comply with this requirement as a core principle of our commitment to local development. This collective effort is essential to ensure that our local work force possesses the necessary skills and knowledge to meet the demands of industries,” the CM said on 30 May 2025 at the launching ceremony of phase one (RM6.4 billion) of the Esteel Enterprise Sabah Sdn Bhd’s project. The ceremony was held at the Sabah International Convention Centre (SICC), Kota Kinabalu.

The three-phased, RM31 billion steel manufacturing plant by Esteel Enterprise Sabah Sdn Bhd in Sipitang will create a wide range of ripple effects extending beyond green technology to spur innovation, drive benefits for businesses and communities in Sabah. Prime Minister Datuk Seri Anwar Ibrahim officiated the launching ceremony, attended by key stakeholders and dignitaries. Esteel Enterprise Sabah Sdn Bhd (Esteel Sabah), is a subsidiary of Singapore’s Green Esteel Pte Ltd. Hajiji said that the Esteel Group has high standards in environmental responsibility and that the transformative project marks a major step towards cleaner and greener steel manufacturing. It will also create spin offs and further enhance the livelihood of the people in Sipitang, in particular, and in Sabah, in general, from green technology innovation to job creation and community development.