SABAH and Negeri Sembilan have emerged as top performers in governance and development, earning national recognition for their strategic planning, economic progress and public service delivery.
Their achievements will be formally recognised at the upcoming International Business Review ASEAN Awards (IBRAA) 2025 where both states are set to receive top honours for their exceptional contributions to Malaysia’s growth story.
Sabah will receive the “Most Outstanding Malaysian State” award for 2024 while Negeri Sembilan has been recognised as the “Most Progressive State”.
The awards are part of a new initiative to acknowledge state-level excellence in governance and development in the prestigious IBR ASEAN Awards which sees participation from renowned companies and government agencies across Southeast Asia and beyond.
Traditionally focused on honouring corporate leadership and achievements in public-private partnerships, IBRAA has expanded its scope this year to include state governments that have demonstrated exceptional performance and commitment to the people.
The selection of award recipients was based on information collated from states that submitted the necessary documentation. Case studies were developed by Expert Advisors, a consultancy firm appointed to conduct this survey, which then compiled detailed reports on state-level initiatives.
The final decisions were made by an adjudication panel consisting of experienced professionals and regional figures.
Award with merit
Sabah was selected as the “Most Outstanding State” based on its achievements in economic growth, infrastructure, environmental sustainability, public welfare and good governance guided by the structured and far-reaching Sabah Maju Jaya (SMJ) development plan.
Sabah is now firmly positioning itself as an industrial state by 2040 with available data backing that ambition.
The state recorded the highest manufacturing sector growth rate in Malaysia at 4.4% in 2023, recovering from a contraction the previous year. Foreign direct investment (FDI) in Sabah saw exponential growth by soaring from RM132.7 mil in 2023 to over RM1.078 bil in 2024.
A key industrial hub, the Kota Kinabalu Industrial Park is now operating at 90% occupancy, housing 288 investors and creating over 14,600 jobs for Sabahans.
Major players such as South Korea’s SK Nexilis (M) Sdn Bhd and China’s SBH Kibing Solar New Energy (M) Sdn Bhd have invested more than RM7 bil in Sabah, drawn by the state’s industrial potential and streamlined processes.
“These investors were able to obtain all the necessary approvals and begin construction within about seven months. This is something that has never been done before,” said Datuk Phoong Jin Zhe, Sabah’s Minister of Industrial Development and Entrepreneurship.
SBH Kibing Solar New Energy (M) Sdn Bhd chairman William Chen said the group’s decision to invest in Sabah was due to its strategic logistics location at the heart of Southeast Asia, access to vital resources like silica sand and natural gas, and the incredible support provided by the state government.
In terms of public development, Sabah has been proactive. The Rumah Mesra SMJ housing programme which targets the hardcore poor will see 3,000 units built this year. The state is also investing RM470 mil into the education sector this year with a clear focus on youth development.
In environmental governance, 62% of Sabah or 4.6 million hectares, remains under forest cover. The state has also strengthened legislation and institutional frameworks, introducing 83 strategies and 295 actions to manage land and marine resources.
“Under Chief Minister Datuk Seri Hajiji Noor’s leadership, long-term non-compliant licenses have been terminated and half a million hectares returned to the state government,” said Datuk Frederick Kugan, Chief Conservator of Forests of the Sabah Forestry Department. “This is a major achievement for sustainable governance.”
Sabah’s conservation efforts are further supported by its progress on protected areas. It has expanded its Totally Protected Areas (TPAs) from 12% in 2007 to 27% in 2024, bringing it closer to the 30% global target under the Kunming-Montreal Biodiversity Framework.
Apart from these achievements, the state had also signed a Commercial Collaboration Agreement (CCA) with state-owned oil giant PETRONAS which resulted in more than RM3 bil in oil and gas (O&G) payments in 2023.
Tourism also showed a strong rebound with international arrivals and tourism receipts increasing by 47% following the pandemic.
Meanwhile, the state has seen improved basic infrastructure with a rural electrification rate of 96.83% with full coverage targeted by 2030.
To reinforce the rigour of the awards process, the IBRAA 2025 organisers have clarified that evaluation was based on independent case studies and verifiable performance data, not on paid submissions.
“What impressed us most about Sabah’s transformation was the sheer depth and structure of the SMJ plan,” said Datuk Seri Azman Ujang who is chairman of the Adjudication Panel.
“It’s not just a vision, it’s a detailed, well-monitored strategy that touches on nearly every facet of development.”
He added: “Sabah submitted one of the most comprehensive dossiers we’ve ever received. That level of care and preparation speaks volumes about the calibre of leadership and governance in the state.”
“Most Progressive State”
Meanwhile, Negeri Sembilan was recognised as Malaysia’s Most Progressive State for its long-term development planning and consistent growth efforts.
The state’s transformation is anchored by the Rancangan Struktur Negeri Sembilan 2045 (RSNS 2045) and Malaysia Vision Valley (MVV) 2.0, both of which aim to strengthen regional connectivity and economic diversity.
Negeri Sembilan is currently home to more than 60 industrial parks, many of which are nearing full capacity, with over 900 companies from more than 20 countries currently operating in these parks.
When contacted, Negeri Sembilan Tourism, Arts and Culture executive councillor Nicole Tan Lee Koon said she was proud that her state had been recognised as Malaysia’s Most Progressive State.
“This recognition is a testament to the state leadership that saw the successful implementation of RSNS 2045 and MVV 2.0 which is expected to contribute up to 15% of Malaysia’s GDP and create over 600,000 jobs,” revealed Tan who is also the two-term Bukit Kepayang state assemblywoman.
The awards will be presented at a gala event scheduled to be held on July 19 at the Sabah International Convention Centre (SICC).
Themed Reimagining ASEAN, the event coincides with Malaysia’s ASEAN Chairmanship for 2025 and is expected to attract government leaders, diplomats, business executives and other distinguished guests from the region.
The IBRAA 2025 gala is expected to be attended by key government and corporate figures from across ASEAN.
As it is, Sabah seems to be on the brink of a major transformation. If the current momentum continues, we can expect to see a new Sabah which is strong, strategic and firmly anchored in its promise to the rakyat. With continuity and time, Sabah can become one of the region’s most dynamic success stories. – June 17, 2025
Post-script: The IBR ASEAN Awards secretariat serve not only to celebrate past achievements but also to inspire continued excellence among ASEAN’s public and private sector leaders.
Nominations are still open for other categories in the IBRAA 2025, including corporate excellence, public-private partnerships and leadership awards.
Organisations across ASEAN are invited to submit their entries by June 30. Nominations can be submitted online at https://forms.gle/gAefBeVwAsdeU54S8. For more information, the organisers can be reached at 012-861 9126 or 012-433 9914.
Main image credit: SabahTravel.com
