Economic Corridors - SDC - MIDA | Malaysian Investment Development Authority
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Economic Corridors – SDC

Sabah Development Corridor (SDC)

Sabah Development Corridor (SDC) is an economic initiative launched in 2008 to boost Sabah’s growth by diversifying its economy, improving infrastructure, and attracting investments.

 

The implementation of the SDC is overseen by the Sabah Economic Development and Investment Authority (SEDIA), which is the one-stop authority that drives the SDC, with the primary responsibility to plan, coordinate, promote, and accelerate the development of the SDC, while ensuring that social development and sustainable development are kept as priorities.

 

Overall, the Sabah Development Corridor is a long-term initiative aimed at transforming Sabah into a vibrant, sustainable, and inclusive economy by leveraging its unique strengths and addressing its challenges.

 

For further details on SEDIA and investment opportunities within SDC , please visit SEDIA

Focus Sectors

Sabah, located on the northern tip of Borneo, is Malaysia’s second-largest state, and home to 3.59 million people. Sabah’s strategic location within the BIMP-EAGA region and its proximity to Indonesia’s new capital positions it to become as a prime hub for businesses, connecting to around 79.8 million new market. Supported by improving infrastructure development and government incentives, Sabah focuses on tourism, manufacturing, agriculture as well as logistics and services. The state’s unique ecosystems, cultural diversity, and potential for eco-tourism and greener industrial practices further enhance its appeal, positioning Sabah as a dynamic region for sustainable and profitable investments.

Tourism

Manufacturing

Agriculture

Logistics

Industrial Parks

Sabah hosts several industrial parks designed to attract investment, support manufacturing, and promote economic development. These parks are strategically located to leverage the state’s resources, infrastructure, and connectivity. These industrial parks are integral to Sabah’s economic strategy, offering opportunities for investors in various sectors.

1
Kota Kinabalu Industrial Park (KKIP)
2
Sabah Agro-Industrial Precinct (SAIP)
3
Sipitang Oil & Gas Industrial Park (SOGIP)
4
Sandakan Industrial Park (SIP)
5
Palm Oil Industrial Cluster (POIC) Lahad Datu

Value Propositions

SDC offers compelling value propositions to investors, business and stakeholders looking to capitalise on strategic opportunities and drive sustainable growth.

Strategic Location

Sabah’s strategic location in BIMP-EAGA and near Indonesia’s new capital positions it as a prime cold-chain logistics hub, connecting 79.8 million end-users.

Robust Economic Growth

Sabah’s economy is on a strong upward trajectory, with rising GDP reflecting robust growth across key sectors.

Rich Natural Resources

Sabah’s Rich Natural Resources: A Prime Investment Opportunity

  • Palm Oil
  • Minerals
  • Timber

Talent Development

Talent Development in Sabah: Empowered by

  • 5 Universities
  • 25 Private Institutions
  • 11 Training Centres

Attractive Incentives and Support

Investment incentives and government support programs for businesses.

Prominent Companies in the Region

Investment Incentives

The SDC tax incentive package offers lucrative benefits for both domestic and foreign investors engaging in promoted activities across designated areas within the Sabah Development Corridor (SDC), namely Kinabalu Gold Coast Enclave, POIC Lahad Datu, Sabah Oil & Gas Industrial Park, Sabah Agro-Industrial Precinct (SAIP), Integrated Livestock Valley, Marine Integrated Cluster and Sandakan Education Hub.

Key incentives include:

  • 100% income tax exemption for up to 10 years; or
  • 100% investment tax allowance for a period of 5 years. The allowance can be used to offset against 100% of each year of statutory income.
  • Exemptions on stamp duty for land development related to tourism projects;
  • Import duty exemption for machinery and equipment.

Disclaimer: Please note that incentives provided by SEDIA are subject to expiration or revision. It is advisable to verify the current status and terms of the incentive package with SEDIA.

Facilitations

MIDA and SEDIA provide investment advisory services, incentives for key sectors, establishment of one-stop centres, infrastructure enhancements, market insights, and human capital development initiatives. Additionally, the partnership with SEDIA aims to provide counsel on investment processes, and aid in the expansion of businesses within the Sabah Development Corridor.

 

Explore your investment opportunity in Malaysia. Contact us at MIDA and we would be happy to assist.

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