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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. Agriculture :: Timber Industry :: Fisheries :: Manufacturing :: Economic Policy & Agencies :: Business Associations | Sabah Forestry Department | SAFODA | The timber industry over the past three decades has been the backbone of the State's economy. Its contribution to the State Government revenue is substantial reprensting aobut 40 per cent of the total State Government revenue collected in 1997. In terms of exports, the timber sector plays a pertinent role to the State's export sector.
Source : Sabah Institute Development of Studies (IDS), April 1999 With more than three quarters of its boundaries surrounded by the sea. Sabah is a very rich maritime state with an estimated potential yield of 251,500 metric tonnes metric tonnes of fish resources. In 1997, contribution from the fishery sector to the State 's Gross Domestic Product is minimal representing only about 2 percent of the State 's Gross Domestic Product. In terms of employment, the fishery sector generates about 22,000 jobs to the State's labour force. The main activity in the fishery sector is prawn trawling. Deep sea fishing is still undeveloped and therefore are tremendous potentials to venture into the area. The aquaculture sector in the State is fast developing particularly in the East Coast with prawn culture being the major aquaculture activity. Culture of fresh water fish, sea water fish, oysters, pearls and seaweed are also becoming more popular in recent years. In terms of exports, fresh frozen prawn is the major fishery product exported from the State contributing about RM150 million to the State's export earning annually. | Federation of Sabah Manufacturers | Kota Kinabalu Industrial Park | The Manufacturing Sector's contribution to the State's output has grown substatianlly from 9 percent of the State's Gross Domestic Product in 1990 to 15 percent in 1997. However, the State's Manufacturing Sector is still at its infancy stage where its manufacturing process is dominated by primary processing of natural resources. The bulk of its manufactured products include sawn timber, veneer, plywood, wooden mouldings, uncoated printing and writing paper, processed palm oil , methanol and Hot Briquetted Iron Higher end products such as furniture and electrical appliances are also produced but in a small scale. The Manufacturing Sector in the State comprise of mainly Small And Medium Scale Industries. In order to spearhead the State's industrialisation process, the Government has drawn up the Sabah Industrial Master Plan. The Government has also developed various industrial parks such as the Kota Kinabalu Industrial Park (KKIP). Timber Intergrated Complexes and Parks, Palm Oil Industrial Cluster and Rubber Industrial Cluster to enhance the State's Manufacturing Sector. Special investment incentives are also given to the Manufacturing Sector to attract potential investors. Economic Policy and State Agencies
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