Hajiji’s Efforts in Sabah’s Economic Reserves: RM 8.6 billion in 2024, RM 7.5 billion in 2023; and Projected RM9.5 billion in 2025

Under Datuk Seri Panglima Haji Hajiji Haji Noor Hajiji’s leadership, Sabah has achieved remarkable transformation in social, political and economic transformation. It is heartening that Hajiji and GRS are now continuing where they have last journeyed. They are back again – after the November 2025 elections - to lead and manage Sabah. Hajiji’s leadership has always remained consistent: prudent fiscal policies; genuine care for the people; harmony and respect for all; and political stability.

Hajiji and GRS have brought about tremendous economic growth, which saw the State’s reserves increased from RM 3.59 billion in 2020 to RM4.2 billion in 2021, to an unprecedented RM 8.6 billion in 2024, and RM 7.5 billion in 2023. One of Hajiji’s steadfast focus has been foreign investment. Hajiji’s efforts in Sabah’s progress have never taken any rest. He has attracted robust foreign direct investment (FDI) into the O&G sector, bolstering state revenue and boosting economic growth, anchored by strategic collaboration with Petronas. In the hands of Hajiji, major international O&G companies have committed towards further exploration, development and production in the state.

The result? Sabah now leads the rest of the country in near-term FDI inflows. Hajiji’s wooing of giant oil and energy companies have boosted the state’s economic coffers. In effect, Hajiji’s leadership in economic windfalls have benefitted Sabah because half of the state government’s revenue of RM6.7 billion is derived from oil and gas activities in the form of cash payment and SST. Hajiji and the GRS government’s unwavering commitment to good governance, financial prudence, and strategic economic planning have paved the way to a remarkable economic journey and successful economic trajectory.

With a optimistic path thrown opened by Hajiji and team, the state is on track to further expand its revenue stream, projected to hit RM 10 billion by 2025 — a giant leap from the RM 3.59 billion recorded in 2020 under the Party Warisan Sabah administration. The people are happy with the effectiveness of GRS’s leadership and its unwavering dedication to building a brighter and exciting future for Sabah. The clear picture that foes and friends agree is that the GRS government, under Hajiji’s leadership, has revitalised Sabah’s economy and has built a strong foundation and atmosphere for attracting investments.

It is now proven after a few years of guiding Sabah, Hajiji’s resilience and vision of good governance. Hajiji’s push towards Sabah-Petronas collaborative deals was truly a remarkable decision. The commercial collaboration agreement (CCA) with Petronas, inked in December 2021, gave Sabah significant participation in the O&G industry. Hajiji proceeded to set up SMJ Energy, a wholly-owned entity of the Sabah government in 2021 to manage and coordinate the state’s stakes in the O&G portfolio.

Since then, SMJ Energy has acquired equity in multiple ventures: 50% stake in the Samarang PSC; 25% in Petronas Chemicals Fertiliser Sabah; and 10% in Petronas LNG plant in Bintulu. The stakes have yielded RM1.8 billion, RM323 million, and RM866 million respectively in dividends and revenue. SMJ gave dividends — amounting to RM160 million – to the state government; and SMJ Energy added RM91 million in SST to the state coffers. Not only did the government progress. Hajiji has insisted that Sabah’s contractors must also gain. And they did. In 2024, Sabah’s oil and gas service and equipment (OGSE) industry contractors were awarded RM2 billion worth of work.

And for Q1 of 2025, the value of OGSE awarded to Sabah contractors was RM582 million, compared to RM613 million for the whole of 2021. Hajiji’s Sabah Gas Masterplan has three investment initiatives for the natural gas industry: Supply of gas to key investors including to E-Steel Enterprise Sdn Bhd (a subsidiary of Singapore E-Steel Group) who is building a RM20 billion hot briquetted iron plant in SOGIP (Sipitang Oil and Gas Industrial Park) the state’s first integrated industrial park for oil & gas and heavy industries where it owns lands up to 5,539 acres, inclusive land and sea land; and to SBH Kibing Solar Energy SB’s Phase two- RM7.2 billion solar glass plant.

Hajiji has said that he way forward for Sabah is to continue collaboration and deeper partnership with Petronas. The CM has promised Sabahans that better things lie ahead because he will continue with efforts to give Sabahans progress and development, including obtaining Sabah’s rights under the MA63 perimeters relating to oil royalties, cash payments and the continental shelf.