Sabah Entrepreneurs Receive RM950.78 Million in State-Backed Financing

By Olivia Hart

Sabah has received RM950.78 million in financing for 44,059 entrepreneurs and cooperatives as of September this year, according to Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor. The funds flowed through the Ministry of Entrepreneur Development and Cooperatives (KUSKOP) and its agencies. Averaged out, that is roughly RM21,600 per recipient — a figure that covers financing disbursement, not outcomes.

Hajiji announced the numbers at the opening of the Sabah-level Hebatkan Perniagaan Malaysia (HPM) Carnival 2026 at Lintasan Deasoka in Kota Kinabalu on 25 October 2026. Deputy Chief Minister III, who also serves as Industrial Development, Entrepreneurship and Transport Minister, Datuk Ewon Benedick, delivered the speech on his behalf.

What does the money actually buy?

Hajiji framed the RM950.78 million as proof of the government's commitment to expanding financing access for micro, small and medium enterprises (MSMEs). He also welcomed KUSKOP's HPM initiative, which he said emphasises comprehensive entrepreneur development rather than merely providing financing.

"Entrepreneurs need not only financing, but also training, technology, improved productivity, simpler application procedures and access to wider markets," Hajiji said.

He added: "We want to see more entrepreneurs and local companies in Sabah move forward become more digitalised, productive and innovative, while expanding their market reach nationally and internationally."

The statement lists ambitions. It does not say how many of the 44,059 recipients have grown revenue, hired staff, or repaid their financing. Those metrics were absent from the announcement.

How does this fit Sabah's development plan?

Hajiji tied the financing push to the Sabah Maju Jaya (SMJ) 2.0 Development Plan covering 2026 to 2030. The plan focuses on enhancing competitiveness, productivity, and value creation in the state's economy, he said.

He also credited KUSKOP with bureaucratic reforms: simplifying procedures and shortening application processing times to improve service delivery for entrepreneurs.

"This is the kind of approach we want to see further strengthened, where entrepreneurs spend more time building their businesses and finding customers, and less time dealing with procedures that can be simplified," Hajiji said.

No specific processing-time reductions or before-and-after figures were provided. The State Government said it stands ready to keep working with KUSKOP so federal programmes match Sabah's business needs.

What role does Budget 2027 play?

Hajiji welcomed Prime Minister Datuk Seri Anwar Ibrahim's Budget 2027 announcement, which he said placed special emphasis on MSME development. The emphasis runs through two channels: improved access to financing and reduced costs of doing business. Details on either mechanism were not disclosed in his remarks.

Beyond federal support, Hajiji said the State Government spent this year strengthening local entrepreneur development through the SME-UP Assistance Programme, which aims to build capacity, productivity and competitiveness of local enterprises.

Which sectors is Sabah targeting?

The State Government is pushing local products into new markets in five areas:

• Food and beverage
• Agriculture
• Tourism
• Handicraft
• Locally sourced products

It is also backing innovation- and technology-based entrepreneurship, alongside rural product empowerment and skills development programmes.

"These initiatives provide opportunities for more entrepreneurs, particularly youths and rural communities, to enhance their skills, add value to their products and explore new economic opportunities," Hajiji said.

He called for continued State-Federal cooperation so more Sabah entrepreneurs can sustain businesses, scale operations and become local business champions — a phrase that carries no defined benchmark.

What was asked of entrepreneurs themselves?

Hajiji urged Sabah entrepreneurs to use the HPM Carnival's offerings: financing consultations, digital training, and business matching sessions run by KUSKOP agencies and the state's strategic partners.

"We must not be content with our existing markets. Improve product packaging, branding and consistency to become more competitive," he said.

He expressed confidence that cooperation among the State Government, Federal Government, financial institutions, the private sector and the business community could build an ecosystem that lets more local enterprises grow and penetrate global markets.

The promise is broad; the test will be whether the 44,059 recipients show measurable growth before the SMJ 2.0 plan's first-year review.