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Sabah is the second largest State in Malaysia with a total land area of 73,610 sq. km. Sabah is rich with natural resources from forest, mineral, fauna, flora to marine life. About 60 percent of its land is under forest cover while agriculture occupies about 30 percent. Forest resources and agriculture produce have always been the main sources of income for the State. Mineral and non-mineral deposits such as oil, copper, gold, limestone and quarry are also found in the State.

Sabah's economy is dependent on exports of its major primary commodities such as palm oil, cocoa, rubber, crude petroleum, sawn timber and plywood. Its export sector alone constitute about 70 per cent of its total output. Presently, the State is the major producer of palm oil and cocoa in the whole of Malaysia. Apart from timber and the agriculture sectors, the manufacturing and the tourism sectors in the State are fast developing and gaining increasing importance to the State's economy.

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