How Important is SABAH to MALAYSIA's ECONOMY?

Описание: #sabah #sabahan

Sabah is considered an important state in Malaysian Federation, it contributes $21.8 billion, or around 5.8% of the 2021 Gross Domestic Product of the Country.

Sabah is Malaysia’s second biggest state, both in terms of population and land Area, with over 3.8 million Sabahan across states in an area of 73,904 square kilometers. It constitutes, of more than 11% of the Malaysian population and more than one-fifth of the land mass of the country.

Its oil and Gas Industry is one of the biggest in the Federation. Sabah has about 11 trillion cubic feet of gas, and 1.5 billion barrels of oil in its reserves, representing about 12% and 25% of Malaysia’s gas and oil Industry. With major oil and gas deposits offshore, Sabah has long been a key part of Malaysia’s hydrocarbons industry, a major driver of the national economy where oil and gas have made up a considerable slice of Sabah’s state revenues and the country’s economy.

Sabah is Malaysia's top crude oil producer, with about 42% of the oil produced in Sabah, while Peninsular Malaysia at 32% and the remaining 26% from Sarawak. While it produced 13% of the country’s natural gas, with Sarawak is the biggest producer of gas at around 61%.

Aside from its oil and Gas Industry, Sabah's palm oil industry produced about 5 million tons in 2020, about 6% of global output - making it the second-largest palm oil state in Malaysia. It contributes 1 billion ringgit or $238.7 million to state coffers each year, with plantations spread across 1.7 million hectares.

When the territorial dispute over Sabah resurfaced last week, when two overseas Malaysian assets under the control of Petronas, Malaysia’s National Oil Company were seized in Luxembourg, including its gas oil field in Azerbaijan in the effort to enforce the arbitrary award won by the heirs of the Sulu Sultanate in High Court of France.

Now it underlies a question, how important is Sabah, not just in the Malaysian Economy, but also in the foundation of the Malaysian Federation as a union state. Currently, Malaysian Federal Government is in chaos in responding to issues, protecting its overseas asset, and its sovereign rights over Sabah.


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