BUSINESSES are shying away from Sabah due to the high cost of investment, said International Trade and Industry Minister Darell Leiking.

He said, after watching Sabah for 18 months, the state needs a new strategy to attract investors.

“There are a lot of investors who want to come here, but we need the state government and local authorities to consider new strategies to entice them.

“First, land is too costly in Sabah. Second, the electricity tariff is too high. We need to find a baseline.

“We must also ease the way of doing business, so investors who come here don’t have to face bureaucracy and red tape,” he told reporters at the Malaysia Autoshow 2019 held at the Penampang Cultural Centre, 13km from Kota Kinabalu.

The Penampang MP said Kota Kinabalu Industrial Park was still not a premier industrial park after 30 years, due to the high cost of land.

According to Leiking, foreign companies prefer to be “asset light” when venturing overseas and therefore will not spend a lot on assets.

China, he said, has progressed because it started out by giving away free land.

Leiking said he is not suggesting Sabah do the same but suggested giving a three-year control over land to investors.

“If they don’t build anything, they must return the land back to the state government,” he added. – October 19, 2019.