Sabah in Malaysia's Energy and Industry Plans (NETR and NIMP 2030)
What do Malaysia's national energy and industry plans say about Sabah?
The National Energy Transition Roadmap (NETR, 2023) includes a Sabah Energy Security Initiative, led by the Energy Commission of Sabah, covering large-scale solar, small hydro, biowaste feedstock policy and a geothermal study. The New Industrial Master Plan 2030 says Sabah is among the three states contributing least to manufacturing and wants its oil and gas, timber, minerals and palm oil processed at home instead of exported raw.
What are NETR and NIMP 2030?
| NETR | NIMP 2030 | |
|---|---|---|
| Full name | National Energy Transition Roadmap | New Industrial Master Plan 2030 |
| Published by | Ministry of Economy | Ministry of Investment, Trade and Industry (MITI) |
| Launched | Ten flagship projects launched 27 July 2023 | Unveiled 1 September 2023 |
| What it covers | Moving Malaysia's energy system away from fossil fuels | Growing manufacturing and spreading it more evenly across the states |
Both are federal plans. In Sabah, electricity is regulated by the state's own Energy Commission of Sabah (ECoS), and NETR names ECoS, and in places Sabah Electricity (SESB), among the champions for items affecting Sabah. For the state's own energy plan, see Sabah's power plan explained.
What does NETR say about Sabah?
Sabah has its own flagship among NETR's ten: the Sabah Energy Security Initiative, led by the Energy Commission of Sabah. NETR describes it as an integrated initiative to secure long-term energy supply and support Sabah's socioeconomic development, including:
- large-scale solar (LSS) and small hydropower plants;
- a policy and regulatory framework on biowaste, to ensure a consistent supply of feedstock;
- a study of the feasibility of geothermal power.
NETR also lists Sabah agencies among the "champions" for two renewable energy initiatives, alongside federal bodies:
| Initiative | What it involves | Sabah champions |
|---|---|---|
| RE1: solar parks | Find land for utility-scale solar parks with federal and state governments and utilities | ECoS, among others |
| RE4: grid investment | Plan the amount, timing and funding of grid investment to reduce grid constraints | ECoS and SESB |
A separate initiative (RE6) proposes new or upgraded power links with neighbouring countries and cross-border renewable energy trading. For what that means for Sabah, see power from Sarawak.
What does NIMP 2030 say about Sabah?
Sabah is near the bottom for manufacturing. NIMP says manufacturing is unevenly spread across Malaysia: Selangor, Johor, Penang and Sarawak contribute the most, while Kelantan, Perlis and Sabah contributed the least to manufacturing value-added.
Process resources at home. Under Action Plan 4.3.2, which aims to align federal and state industrial plans, NIMP says Sabah's oil and gas, timber, minerals and palm oil provide opportunities for downstream manufacturing, "instead of exporting them in raw form". It adds that Sabah's current energy insufficiency could be addressed by exploring renewable energy.
MITI leads that action plan with state governments and others. NIMP says it will identify growth areas through regular engagement with the states, and support them in infrastructure, investment and talent development.
A target for less developed states:
| Measure | Baseline (2021) | Target (2030) |
|---|---|---|
| Manufacturing value-added in less developed states | 22% of state GDP | 30% to 35% of state GDP |
| Realised investment (FDI and DDI) as a share of state GDP | 13% on average | 25% |
Source: NIMP 2030, p.42. The table does not name the states it counts as less developed.
For the parks where this industry would go, see industrial parks in Sabah and Sabah's gas and the LNG plans.
How far along is it?
Status as of September 2026:
- Solar and hydro: the Babagon Dam floating solar farm (13.2 MW) and a 15 MW solar farm at Batu Sapi were launched in February 2026, and the Upper Padas hydro project was re-approved in May 2026. See renewable energy in Sabah.
- Biowaste policy and geothermal: we have not found a published Sabah biowaste feedstock policy, or a restart of the Tawau geothermal project.
- Manufacturing: we have not found a published NIMP progress report giving Sabah's manufacturing share against the 2030 target.
Much of this depends on Sabah agencies: ECoS and SESB for energy, and the state government for industrial land and investment. We will update this page as progress is reported.
Frequently asked questions
Q What is the Sabah Energy Security Initiative?
Q Does NIMP 2030 mention Sabah?
Q What is NIMP's target for less developed states?
Q When were NETR and NIMP 2030 launched?
Sources & References 3 sources
Last verified: 27 September 2026
National plans
- National Energy Transition Roadmap (Ministry of Economy, 2023) Preface: ten flagships launched 27 July 2023. p.34: RE1 solar parks, RE4 grid investment (ECoS and SESB), RE6 cross-border RE trading. p.53: Sabah Energy Security Initiative, champion Energy Commission of Sabah.
- New Industrial Master Plan 2030 (Ministry of Investment, Trade and Industry) p.31: Kelantan, Perlis and Sabah contributed least to manufacturing value-added. p.42: less developed states 22% to 30–35% of state GDP; investment 13% to 25%. pp.127–128: Action Plan 4.3.2, Sabah downstream opportunities and energy insufficiency.