🔀 For Everyone

Sabah Trade Statistics 2026 — Exports, Imports & Partners

Q: What are Sabah's main exports?

Sabah's three largest exports are: (1) Crude petroleum — RM21.3 billion (34.7% of exports), mostly to China and India; (2) Palm oil & products — RM17.3 billion (28.2%), to India, China, EU; (3) Liquefied natural gas (LNG) — RM4.6 billion (7.5%), to Japan, South Korea, Taiwan. Together, these three commodities account for 70.4% of Sabah's total exports . Other exports include timber (~3%), seafood products (~2%), and miscellaneous manufactured goods.

Q: Is the timber export decline permanent?

Timber export volumes have collapsed from ~2M cubic metres/year (early 2000s) to ~0.3–0.5M cubic metres today. This is due to: (1) Log export ban (1996) — Malaysia prohibited export of unprocessed logs to encourage downstream processing, but enforcement has been uneven; (2) Sustainable logging moratorium (2005) — Sabah pledged to stop clearing primary and high-conservation-value forests, limiting new timber supply; (3) Reduced harvest quotas — diminishing accessible timber and rising environmental standards; (4) Market shift to plantation wood — tropical hardwoods face declining global demand due to environmental concerns and alternatives (engineered wood, composite materials). Timber exports may stabilise at current low levels but recovery to historical volumes is unlikely. Opportunities exist in higher-value downstream (furniture, plywood) but capital requirements are high.

Q: What does Sabah import and from where?

Top imports (2024): (1) Refined petroleum products — RM5.2 billion, mostly from Singapore and Malaysia; (2) Machinery and equipment — ~RM4 billion, from China, Japan, Germany; (3) Vehicles and parts — ~RM2.5 billion, from Japan, Thailand, Malaysia; (4) Fertilisers and chemicals — ~RM1.5 billion, from China, India; (5) Food and consumer goods — ~RM2 billion, from Malaysia, Thailand, Singapore. Import dependence reflects Sabah's limited manufacturing base — the state imports almost all processed goods, vehicles, machinery, and spare parts. The trade deficit in manufactured goods is offset by surpluses in commodities.

Q: What is the outlook for Sabah's trade balance?

Sabah typically runs a trade surplus (exports > imports) due to commodity exports. In 2024, surplus was RM14.9 billion. However, this surplus is volatile and entirely dependent on commodity prices : (1) If palm oil prices fall 20%, surplus could shrink by RM3+ billion; (2) If oil prices collapse, the impact is even larger. Long-term risk: as commodity markets mature and energy transition progresses, commodity prices may face downward pressure, eroding Sabah's trade surplus. Mitigation requires diversifying into higher-value manufacturing and services (tourism already contributes significantly). Without diversification, Sabah's trade surplus could turn to deficit by the 2030s.

Last updated: 11 April 2026

Sepanggar port with container vessels and Southeast Asian dock workers loading cargo

ℹ️ The quick answer

Sabah\u2019s total international trade in 2024 was RM107.8 billion — exports RM61.3B, imports RM46.4B, yielding a trade surplus of RM14.9 billion. Top exports: crude petroleum (35%), palm oil (28%), and LNG (7.5%). Top partners: China, India, European Union, and Japan. Sabah\u2019s trade is heavily commodity-dependent and vulnerable to global price fluctuations.

📊

RM107.8B

Total trade 2024

↑ +2.7% vs 2023

📤

RM61.3B

Exports

↓ −2.3% vs 2023

📥

RM46.4B

Imports

↑ +10.2% vs 2023

💰

RM14.9B

Trade surplus

commodity-driven

🛢️

Crude oil

Top export

35% of total

🇨🇳

China

Top partner

18% of trade

Sabah Exports by Commodity (2024)

Three commodities — crude petroleum, palm oil, and LNG — account for 70.4% of all exports. Dependence on commodities creates vulnerability to price shocks.

Source: DOSM Sabah External Trade 2024

Trade profile and structure

Sabah is a commodity export economy with a modest but growing services export base (tourism). The state runs a consistent trade surplus, reflecting its abundant natural resources and limited domestic manufacturing. However, this trade surplus masks structural challenges: the economy imports nearly all processed goods, machinery, and consumer products, and is vulnerable to global commodity price cycles.

Sabah\u2019s main trade partners are all large economies with strong demand for commodities: China, India, Japan, South Korea, and the European Union. Trade with smaller neighbouring economies (Brunei, Indonesia) is limited, partly due to Malaysia\u2019s protectionist policies and cabotage restrictions on shipping.

Export structure and commodities

Total exports (2024): RM61.3 billion — down 2.3% from 2023, reflecting lower commodity prices and volumes.

Crude Petroleum (35% of exports, RM21.3B)

Sabah\u2019s largest single export commodity. Exported to China (~40%), India (~25%), Japan (~15%), and others at global benchmark prices (Brent crude). Price volatility is the primary driver of export value swings. A US$10/barrel price change affects export revenues by roughly RM2–3 billion annually.

Palm Oil & Products (28% of exports, RM17.3B)

Second-largest export. Includes crude palm oil (CPO), palm kernel oil, and refined products. Shipped to India (largest importer, ~25%), China (~20%), European Union (~15%), and others. Markets are more stable than oil but subject to currency fluctuations and trade disputes (some countries restrict imports due to sustainability concerns).

Liquefied Natural Gas (7.5% of exports, RM4.6B)

Growing export category. Produced by floating LNG vessels and exported to Japan (~35%), South Korea (~25%), Taiwan (~20%), and others in East Asia. LNG markets are integrated with global energy markets but have longer-term contracts, providing some price stability.

Timber & Wood Products (~3%, RM~2B)

Collapsed from historical levels (~RM5–6B in the 1990s) due to sustainability concerns, logging moratorium, and declining global demand for tropical hardwoods. Remaining exports are mostly sawn timber, plywood, and specialty products, with minimal value growth prospects.

Seafood & Aquaculture (~2%, RM~1.2B)

Growing but modest. Includes fresh and frozen fish, shrimp, and seaweed. Markets are mainly Singapore, Japan, and regional processors. Aquaculture growth (tiger grouper, seabass, shrimp) is expanding production and export potential.

Sabah Export Destinations (2024)

China is the largest single partner, but Sabah exports are distributed across multiple buyers, reducing over-reliance on any single market. Diversification has improved over the past decade.

Source: DOSM Sabah External Trade 2024

Imports and trade balance

Total imports (2024): RM46.4 billion — up 10.2% from 2023.

Top import categories:

Refined petroleum products (~RM5.2B) — refined fuel, diesel, petrol for transport and power generation. Mostly from Singapore and Malaysia refineries.
Machinery and equipment (~RM4B) — industrial machinery, computers, electronic equipment. From China, Japan, Germany.
Vehicles and parts (~RM2.5B) — cars, trucks, motorcycles, spare parts. From Japan, Thailand, Malaysia.
Chemicals and fertilisers (~RM1.5B) — mainly inorganic fertilisers for palm oil, from China and India.
Food and consumer goods (~RM2B) — rice, food products, textiles, consumer goods. From Malaysia, Thailand, Singapore, China.

Imports reflect Sabah\u2019s limited manufacturing base and reliance on Peninsular Malaysia and external suppliers for almost all processed goods. The large import growth (10.2% YoY) reflects rising commodity input costs and increased capital goods imports for infrastructure projects.

Sepanggar port with container vessels loading Sabah palm oil exports with Southeast Asian workers — Sepanggar port — main trade hub

Palm oil export terminal with bulk loading and Southeast Asian port workers — Palm oil terminal — commodity export

Fish market in Kota Kinabalu with Southeast Asian vendors selling seafood exports — Seafood market — growing export

Trade trends and volatility

Sabah\u2019s trade is highly volatile due to commodity price dependence. Year-to-year swings of 15–20% are common:

Sabah Total Trade Value & Exports, 2019–2024

Trade collapsed in 2020 (COVID), surged in 2022 (commodity boom), then moderated in 2023–2024. Total trade and exports remain well above pre-2022 levels but below the 2022 peak.

Source: DOSM Sabah External Trade

2020: COVID collapse

Total trade fell to RM78.5B (−18% from 2019) as global demand collapsed, shipping disruptions occurred, and commodity prices plummeted.

2021–2022: Commodity boom

Trade rebounded sharply to RM120.3B in 2022 as: (1) global economic recovery; (2) oil and gas prices surged; (3) palm oil prices spiked (US$1600+/tonne at peak). Export revenues were abnormally high, funding exceptional state government spending and development projects.

2023–2024: Normalization

Trade moderated to RM107.8B as commodity prices normalised. However, 2024 trade remains ~12% above pre-2022 levels, reflecting sustained global demand and structural economic growth beyond the commodity boom.

Trade challenges and opportunities

Commodity price volatility: Sabah\u2019s trade and government revenues are at the mercy of global markets. A sustained commodity downturn would be economically disruptive.

Cabotage policy: Mandatory use of Malaysian-flagged vessels increases shipping costs, making Sabah\u2019s exports less price-competitive and imports more expensive.

Limited export diversification: Dependence on three commodities (oil, palm, LNG) limits resilience. Building a manufacturing base for value-added processing would reduce vulnerability.

Trade facilitation: Sepanggar port is the main gateway; recent upgrades have improved throughput. Further improvements in port efficiency and logistics would reduce trade costs and support export competitiveness.

Frequently asked questions

Q What are Sabah's main exports?

Sabah's three largest exports are: (1) Crude petroleum — RM21.3 billion (34.7% of exports), mostly to China and India; (2) Palm oil & products — RM17.3 billion (28.2%), to India, China, EU; (3) Liquefied natural gas (LNG) — RM4.6 billion (7.5%), to Japan, South Korea, Taiwan. Together, these three commodities account for 70.4% of Sabah's total exports. Other exports include timber (~3%), seafood products (~2%), and miscellaneous manufactured goods.

Q Why does Sabah depend so heavily on China?

China is Sabah's largest trading partner (roughly 18% of exports) due to: (1) Crude oil imports — China's massive refinery capacity and fuel demand makes it the default buyer for Sabah oil at global prices; (2) Palm oil demand — China imports millions of tonnes for food, feed, and industrial use; (3) Manufacturing inputs — Chinese suppliers dominate machinery, vehicles, and consumer goods imported to Sabah. This dependence creates vulnerability: if China reduces commodity imports (due to recession, policy shift, or sanctions), Sabah's trade and government revenue suffer. Diversification to India, EU, and other partners is strategically important but difficult given global trade patterns.

Q Is the timber export decline permanent?

Timber export volumes have collapsed from ~2M cubic metres/year (early 2000s) to ~0.3–0.5M cubic metres today. This is due to: (1) Log export ban (1996) — Malaysia prohibited export of unprocessed logs to encourage downstream processing, but enforcement has been uneven; (2) Sustainable logging moratorium (2005) — Sabah pledged to stop clearing primary and high-conservation-value forests, limiting new timber supply; (3) Reduced harvest quotas — diminishing accessible timber and rising environmental standards; (4) Market shift to plantation wood — tropical hardwoods face declining global demand due to environmental concerns and alternatives (engineered wood, composite materials). Timber exports may stabilise at current low levels but recovery to historical volumes is unlikely. Opportunities exist in higher-value downstream (furniture, plywood) but capital requirements are high.

Q What does Sabah import and from where?

Top imports (2024): (1) Refined petroleum products — RM5.2 billion, mostly from Singapore and Malaysia; (2) Machinery and equipment — ~RM4 billion, from China, Japan, Germany; (3) Vehicles and parts — ~RM2.5 billion, from Japan, Thailand, Malaysia; (4) Fertilisers and chemicals — ~RM1.5 billion, from China, India; (5) Food and consumer goods — ~RM2 billion, from Malaysia, Thailand, Singapore. Import dependence reflects Sabah's limited manufacturing base — the state imports almost all processed goods, vehicles, machinery, and spare parts. The trade deficit in manufactured goods is offset by surpluses in commodities.

Q How does the cabotage policy affect Sabah's trade costs?

Malaysia's cabotage policy requires all goods shipped between Malaysian ports to use Malaysian-flagged vessels. This increases shipping costs by 15–25% for Sabah (and Sarawak) relative to Peninsular Malaysia, because: (1) Malaysian flagged ships are expensive — stricter regulations and higher wages; (2) Limited competition — few Malaysian operators, reducing competitive pressure; (3) No economies of scale — cabotage removes the option of using cheaper Southeast Asian or international carriers. Effect: imported goods cost more in Sabah, exported goods must price higher to cover shipping, making both exports and imports less competitive. This is a hidden tariff that disadvantages East Malaysia.

Q What is the outlook for Sabah's trade balance?

Sabah typically runs a trade surplus (exports > imports) due to commodity exports. In 2024, surplus was RM14.9 billion. However, this surplus is volatile and entirely dependent on commodity prices: (1) If palm oil prices fall 20%, surplus could shrink by RM3+ billion; (2) If oil prices collapse, the impact is even larger. Long-term risk: as commodity markets mature and energy transition progresses, commodity prices may face downward pressure, eroding Sabah's trade surplus. Mitigation requires diversifying into higher-value manufacturing and services (tourism already contributes significantly). Without diversification, Sabah's trade surplus could turn to deficit by the 2030s.