AI, automation, digital economy all central to Sabah’s future growth, says minister

KOTA KINABALU (Jan 17): Artificial intelligence (AI), automation and digital economy will drive Sabah’s growth in the coming years, said State Education, Science, Technology and Innovation Minister Datuk James Ratib.

He emphasised education and technology as being critical in attracting foreign investments.

“Education, science, technology and innovation play a critical role in strengthening investor confidence,” he said during the Malaysia Market Outlook 2026 seminar here Friday.

James also pointed out the importance of talent readiness, particularly through robust Science, Technology, Engineering, Mathematics (STEM) and Technical and Vocational Education and Training (TVET) programmes.

“In Sabah, the state government is focused on developing industry-ready local talents and building a sustainable talent pipeline in collaboration with technology companies and investors,” he added.

James also said the state was introducing a responsible and ethical AI policy framework to encourage innovation, provide regulatory clarity, and reduce risks for investors.

Meanwhile, Kota Kinabalu Chinese Chamber of Commerce and Industry (KKCCCI) president Datuk Michael Lui emphasised the crucial role of stable policies in supporting business growth.

“In today’s rapidly evolving world driven by technology and innovation, businesses face unprecedented opportunities and challenges.

“The ability to anticipate trends and seize the initiative is essential for sustainable growth,” he said.

Lui also highlighted the need for predictable and forward-looking government policies.

“Frequent policy shifts can unsettle local businesses and weaken the confidence of foreign investors.

“Policies should aim for win-win outcomes between state government and enterprises, creating an environment where long-term planning, innovation, and sustainable growth are possible,” he said.

Lui added that enterprises and the state government must work hand in hand, supported by education, technology and innovation policies, to expand into diverse investment fields and strengthen the international competitiveness of local businesses.

“Through collaboration, knowledge sharing, and consistent policies, we can ensure Sabah remains attractive for investment while empowering local enterprises to thrive,” he said.