By Ts Dr. Hj Ramli Amir, former President of the Chartered Institute of Logistics and Transport (CILT) Malaysia and Vice-President of CILT International for Southeast Asia
KOTA KINABALU: As the global economy embraces Industry 4.0, data science and engineering have become critical pillars of modern manufacturing and investment strategies. However, Sabah faces a major shortfall in homegrown data engineers and scientists, leaving the state unprepared to fully support smart manufacturing, AI-driven logistics, and foreign direct investment (FDI).
With the state government actively promoting industrialisation through initiatives such as the Sabah Manufacturing Hub, AI-driven ports, and green energy projects, the question remains: Can Sabah develop a strong local talent pool in data science and engineering to attract investors and support local industries?
Sabah’s Growing Industrial Needs
Sabah’s manufacturing and industrial sectors are undergoing gradual transformation, with increasing investments in:
Renewable Energy Manufacturing –
Companies like SBH Kibing Solar New Materials Sdn. Bhd. are leading the charge in solar glass production.
AI-Driven Ports & Logistics – The expansion of Sapangar Bay Container Port (SBCP) and DP World’s involvement in Sabah Ports require AI and data-driven analytics to enhance operations.
Automated Agriculture & Smart Farming – The push for precision farming, IoT-based monitoring, and AI-enhanced productivity demands advanced data analytics.
Despite this industrial momentum, a key challenge persists—Sabah lacks a qualified workforce of data engineers and scientists to support this shift. Many companies must either import talent from West Malaysia or outsource to foreign AI service providers, increasing operational costs and slowing local economic benefits.
The Consequences of Sabah’s Data Talent Shortage
The absence of a robust local data-driven workforce has far-reaching implications:
Manufacturing Competitiveness at Risk
– Without predictive analytics, IoT integration, and AI automation, Sabah’s industries risk falling behind regional competitors.
Missed Foreign Investment
Opportunities – Companies looking to establish manufacturing operations in Sabah require a skilled workforce in data-driven production and automation. Without this, they may choose to invest in Peninsular Malaysia, Indonesia, or Vietnam instead.
Limited Economic Growth – Without a strong digital workforce, Sabah risks missing out on high-value industries such as semiconductor production, electric vehicle (EV) battery manufacturing, and AI-powered logistics hubs.
Challenges in Developing Sabah’s Data Workforce
Several barriers stand in the way of Sabah cultivating its own data engineering and science professionals:
Lack of Specialised Higher Education Programs – Sabah’s universities, including UMS and UCSF, currently do not offer dedicated faculties for AI, data science, and machine learning.
Brain Drain to West Malaysia & Singapore – Many Sabahan tech graduates prefer to work in KL, Penang, or Johor due to higher salaries and better career prospects, worsening the local talent shortage.
Limited Awareness Among Sabah’s Business Leaders – Many local manufacturers still operate using outdated methods and fail to realise the full potential of data analytics and AI-driven automation.
Slow Integration of AI & Data Science in Policy Making – While the Sabah Digital Government Blueprint promotes digital transformation, comprehensive data governance and AI strategy policies remain underdeveloped.
Solutions: Building a Data-Driven Workforce in Sabah
To overcome these challenges, Sabah must take a structured and proactive approach to developing a sustainable talent pipeline in data science and engineering:
Establish a Data Science & AI Faculty in Sabah
UCSF and UMS should collaborate with international tech universities to fast-track AI and data engineering degree programs.
Introduce TVET-focused diploma courses on data analytics for manufacturing, logistics, and agriculture.
Partner with global AI firms (such as NVIDIA, Google Cloud, or Microsoft AI) for certification programs.
Create Industry-Academia Collaborations
Government and industries should fund R&D programs at local universities to train industry-ready data engineers.
Implement industrial internships where students work directly with manufacturers, logistics hubs, and renewable energy firms.
Incentivise Local Tech Startups
Provide government grants for AI-based startups in Sabah, focusing on predictive maintenance, smart factories, and supply chain analytics.
Establish an AI & Data Hub at Sabah Industrial Park to nurture tech talent.
Retain & Attract Local Data Experts
Offer competitive salaries and job opportunities to prevent Sabahan AI & data engineers from migrating.
Provide tax incentives for companies hiring local data scientists.
Establishing an AI & Data Hub: A Strategic Necessity
An AI & Data Hub at Sabah Industrial Park could be a game-changer for the state’s industrialisation trajectory. Here’s why it is critical in shaping Sabah’s future:
Driving Digital Transformation in Industry
Sabah’s industrialisation has been largely resource-driven, but the future demands a shift towards high-tech, data-driven industries. An AI & Data Hub would provide the foundation for:
Smart Manufacturing – Enabling automation, predictive maintenance, and AI-driven supply chain optimisations.
Agritech & Smart Farming – Using AI and IoT for precision agriculture, improving productivity and sustainability.
Energy & Sustainability Solutions – Supporting Sabah’s move towards renewables (solar, micro-hydro, floating power plants) by integrating AI for grid optimisation.
Enhancing Human Capital Development
Currently, Sabah lacks a strong digital workforce. Without an AI & Data Hub:
The state risks being left behind in Malaysia’s digital economy push.
Existing industrial players will continue outsourcing data and AI expertise to firms in Peninsular Malaysia or abroad.
There will be limited career opportunities for local talent in tech fields, leading to further brain drain.
Strengthening Sabah’s Industrial Competitiveness
Sabah needs to move up the value chain and develop industries that are less dependent on raw commodity exports. A strong AI-driven ecosystem can:
Attract foreign direct investment (FDI) in high-tech sectors.
Support digital trade & logistics hubs, complementing initiatives like Sapangar Bay Container Port (SBCP) expansion.
Enable advanced port analytics & logistics automation, improving port efficiency and trade competitiveness.
Aligning with National & Global Trends
Malaysia’s Madani Economy prioritises digital transformation. Sabah must align with national AI & Digital Economy policies to secure federal funding & investment incentives.
Global industries are increasingly AI-driven. Sabah must position itself as a regional AI hub to remain competitive in ASEAN.
A Digital Future for Sabah
Without a strong foundation in data science and AI, Sabah’s ability to attract foreign investment and foster industrial growth will remain limited. By prioritising education, industry collaboration, and policy innovation, the state can create a thriving digital workforce, ensuring that it remains competitive in the rapidly evolving global economy.
Sabah has the potential to be a leader in the digital revolution—but will it act fast enough to secure its place in the future of smart manufacturing and AI-driven industries?
