SANDAKAN – The Sabah government should prioritise translating investments that the state receives into job opportunities for the local population, said activist Datuk Johan Ariffin Samad.
He noted that foreign investments announced by the Sabah government often overlook the need for training and skill development for the locals, thereby failing to benefit Sabahans through job creation.
Johan, who previously served as the chief executive officer of Sabah’s Institute for Development Studies, pointed out that Sabah faces a dearth of industries capable of providing ample job opportunities for its residents.
He said aside from the plantation and construction sectors, which offer significant employment, there is limited interest among locals in these fields.
“Investments are not translated into jobs. That is why we have this massive number of unemployed people in Sabah, which is not new.
“I have observed speeches by the ministers announcing these FDI (foreign direct investment), but other than the copper investment (SK Nexilis’s copper foil production that will create 400 jobs), none of them mentioned skills training for the locals so that these investments would hire Sabahans in the future,” he told Scoop.
While acknowledging the importance of foreign direct investment for Sabah’s economic growth, Johan questioned how much it would materialise into sustainable industries.
“I am not surprised (with Sabah’s high unemployment rate). It has been a long-standing problem in Sabah for decades. Remember, there was one time when over 100,000 people (in Sabah) applied for government posts that had only six vacancies?
“Foreign direct investment is important for Sabah, but apart from what has been announced in the newspapers, how much of that will be translated into an actual industry?” he asked.
“When we discuss industries in Sabah, we have the Kota Kinabalu Industrial Park and the Sipitang Oil & Gas Industrial Park. However, the key question is, how many of them genuinely employ local residents?”
Recently, Human Resources Minister V. Sivakumar revealed that Sabah had the highest unemployment rate in the country, with approximately 29% of the nation’s unemployed population hailing from the state, accounting for 169,800 people out of the 588,700 unemployed nationwide. Sabah’s unemployment rate stands at 7.5%, double the national average of 3.5%.
Sabah also recorded a 3.7% gross domestic product growth rate in 2022, in contrast to the national growth rate of 8.7%.
Deputy Human Resources Minister Mustapha Sakmud, who is also from Sabah, identified inadequate infrastructure and challenging geographical conditions as significant obstacles to job creation in Sabah.
He stressed that insufficient infrastructure not only hampers access to education but also impedes business operations and growth.
“The lack of adequate infrastructure, such as roads, ports, and airports, makes it difficult for businesses to operate in Sabah and create jobs. Businesses need good infrastructure to transport goods and services and to attract customers and investors,” he said.
He added that Sabah’s unique geographical distribution, with 55% of its population residing in rural areas, exacerbates the challenge by limiting opportunities within these regions.
“Sabah’s geography, characterised by its rugged terrain and isolated communities, poses significant challenges to economic development. Many remote areas lack adequate transportation infrastructure, hindering access to markets and employment opportunities,” he said.
Mustapha also noted that the MYFutureJobs portal data indicates a comparatively low migration rate in Sabah compared to other states, with approximately 96% of job seekers opting to remain in the state.
Additionally, he pointed out that the portal ranks fourth in terms of jobseeker registrations, reflecting a surplus supply of labour compared to the average demand of 67,000 vacancies annually. These vacancies predominantly fall under elementary occupations, accounting for 47.3% of the total.
“High unemployment rates in Sabah are a complex issue rooted in socio-economic, geographical, and structural factors. The Human Resources Ministry, in collaboration with other relevant stakeholders, is committed to addressing these challenges through a multifaceted approach,” he added. – September 5, 2023
