KOTA KINABALU, Saturday, 11 October 2025:
The Prime Minister recently projected Malaysia’s GDP growth for 2026 at between 4% and 4.5%, with inflation expected to range from 2% to 3%.
After adjusting for inflation, the true national growth will be only 1% to 2.5%, showing that much of the economic gain will be absorbed by rising prices.
This is why Sabah must aim for at least 8% annual GDP growth for ten consecutive years while keeping inflation below 3% to overcome poverty and close the development gap.
I first shared this vision in June at the Sabah Business and Economy Seminar, emphasising that sustained growth at this level is necessary to create jobs, increase incomes, and give Sabahans a real chance at better lives.
In 2022 Sabah’s poverty rate stood at 19.7% and with 8% annual GDP growth while accounting for population growth of 2% to 3% the poverty rate could fall to between 6% and 8% by 2035, and the resilience of Sabahans will ensure we seize the opportunities that growth brings.
Sabah’s strength lies in its natural resources, strategic location near the Lombok-Makassar Lane, and proximity to Indonesia’s emerging Nusantara region, which together create unique opportunities for economic expansion, while engagement in initiatives like One Belt One Road makes the 8% target achievable.
Sustained and inclusive growth at 8% per year while keeping inflation under control will eliminate poverty, strengthen stability, and give every Sabahan a brighter future.
Datuk Yong Teck Lee
SAPP President
Ex-Chief Minister