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 global trade flows shift, technology accelerates, and environmental issues intensify, the state’s logistics and transportation landscape must not only keep pace but set new standards for integration, sustainability, and inclusivity.
A bold vision for Sabah’s logistics and transportation sector is therefore essential, one that positions the state as a leading, integrated, and sustainable logistics hub in Southeast Asia.
This essay explores such a vision, examining its foundational pillars, the challenges it must overcome, and the transformative impact it can have on Sabah’s economy and society.
Transformation Agenda
Sabah’s geography is both a blessing and a challenge. Its vast landmass, rugged interior, and extensive coastline are rich in biodiversity and resources, yet they pose significant obstacles for connectivity and efficient goods movement. Historically, the state has grappled with fragmented infrastructure, limited rural access, and overreliance on road transport. As Sabah aspires to diversify its economy beyond traditional sectors such as agriculture and tourism, the need for a robust, future-ready logistics and transportation system becomes ever more pressing.
In a rapidly globalising world, logistics is no longer a mere support function but a strategic enabler of competitiveness. Efficient logistics lowers the cost of doing business, attracts investment, and opens new markets for local producers. For Sabah, with its strategic location at the heart of the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA), the opportunity to serve as a gateway for regional trade is immense. However, realising this potential requires a fundamental reimagining of the state’s logistics and transportation landscape.
Integrated Multimodal Connectivity:
The Backbone of Progress
Central to Sabah’s logistics vision, there must be integrated multimodal connectivity. This means creating a seamless network that links road, rail, air, and maritime transport, enabling goods and people to move efficiently across the state and beyond. Currently, Sabah’s logistics flows are heavily road-centric, leading to congestion, higher costs, and environmental strain. Upgrading and expanding critical infrastructure—such as the Sapangar Bay Container Port, regional airports, and arterial highways—is essential to accommodate growing volumes and meet international standards.
Yet, integration goes beyond physical infrastructure. It entails harmonising schedules, streamlining customs and regulatory processes, and fostering interoperability between different transport modes. For instance, synchronising port and rail operations can significantly reduce cargo dwell times, while digital platforms can provide real-time visibility across the supply chain. By prioritising intermodal solutions, Sabah can reduce bottlenecks, enhance resilience, and position itself as a logistics hub capable of serving both domestic and transhipment markets.
Technological and Digital Transformation
The logistics sector worldwide is undergoing a digital revolution, and Sabah must not be left behind. Embracing advanced technologies such as artificial intelligence, the Internet of Things, blockchain, and automation can yield dramatic improvements in efficiency, transparency, and cost-effectiveness. For example, AI-driven analytics can optimise route planning and inventory management, while IoT-enabled sensors provide real-time tracking of shipments, reducing losses and delays.
Digitalisation also enhances customs clearance and regulatory compliance, making Sabah more attractive for international investors and trading partners. However, technology is only as effective as the people who use it. Therefore, fostering digital talent through targeted education, training, and industry partnerships is vital. By cultivating a workforce skilled in logistics technology, Sabah can ensure that its transformation is both deep and sustainable, rather than superficial or short-lived.
Sustainable and Green Logistics
In the twenty-first century, sustainability is not a luxury but a necessity. Sabah’s logistics vision must be anchored in environmental stewardship, aligning with global trends towards green logistics.
This involves investing in electric vehicles, renewable energy-powered facilities, and eco-friendly port operations. Moreover, infrastructure planning must incorporate climate resilience, given the increasing frequency of extreme weather events and rising sea levels.
Sustainable logistics is not merely about reducing emissions; it is about creating systems that are resilient, adaptive, and resource efficient. For Sabah, this means balancing economic growth with the preservation of its unique natural heritage. By positioning itself as a leader in green logistics, the state can attract environmentally conscious investors and partners, while also fulfilling its responsibilities to future generations.
Economic Inclusivity and Rural Empowerment
A truly transformative logistics and transportation vision must be inclusive, ensuring that the benefits of progress reach every corner of Sabah. Rural connectivity remains a persistent challenge, with many communities facing limited access to markets, healthcare, and education. By improving rural transport links, the state can empower smallholders, artisans, and entrepreneurs to participate more fully in the economy.
Enhancing rural logistics also reduces post-harvest losses in agriculture, supports food security, and stimulates local industries. Public transport improvements are equally vital, reducing the cost and barriers for low-income groups to access opportunities in urban centres. In this way, logistics becomes not just an economic driver but a tool for social equity and cohesion.
Governance, Collaboration, and Stakeholder Engagement
No vision can succeed without effective governance and broad-based collaboration. Sabah’s logistics transformation requires strong institutions, clear accountability, and active engagement with all stakeholders—government agencies, private sector players, civil society, and local communities.
The establishment of bodies such as the Sabah Logistics Council can provide strategic direction, coordinate efforts, and resolve bottlenecks swiftly.
Public-private partnerships are critical for mobilising investment, sharing expertise, and driving innovation. Cross-border collaboration, especially within ASEAN and BIMP-EAGA, can open up new markets and facilitate knowledge exchange. Crucially, community engagement ensures that transport solutions are tailored to local needs and enjoy public support, fostering a sense of ownership and shared purpose.
Long-Term Master Planning and Policy Alignment
Transforming Sabah’s logistics and transportation landscape is a long-term endeavour, requiring vision, perseverance, and adaptability. Developing a comprehensive Sabah Transport Masterplan, aligned with national policies such as the National Transport Policy 2019–2030, provides a roadmap for phased, data-driven implementation. Such a plan must be flexible enough to accommodate technological advances and shifting socio-economic dynamics.
Policy alignment ensures coherence, secures federal support, and enables Sabah to contribute meaningfully to Malaysia’s broader economic and sustainability goals. Regular monitoring, evaluation, and course correction are essential to keep the transformation on track and responsive to emerging challenges and opportunities.
Overcoming Challenges and Seizing Opportunities
While the vision for Sabah’s logistics and transportation landscape is ambitious, it is not without challenges. Funding constraints, bureaucratic inertia, and skills shortages can impede progress. However, these obstacles are not insurmountable. By leveraging its strategic location, natural resources, and youthful population, Sabah can attract investment and talent from across the region.
The rise of e-commerce, the shift towards regional supply chains, and the growing demand for sustainable solutions all present opportunities for Sabah to differentiate itself. By positioning itself as a logistics gateway for Borneo and the wider ASEAN region, the state can catalyse new industries, create high-quality jobs, and enhance its global standing.
The Transformative Impact
If realised, this vision will have far-reaching impacts on Sabah’s economy and society. Efficient logistics will lower the cost of goods, making everyday life more affordable for Sabahans. Improved connectivity will open up new markets for local producers, stimulate investment, and diversify the state’s economic base. Sustainable practices will safeguard Sabah’s environment, ensuring that development does not come at the expense of its natural heritage.
Most importantly, a modern, inclusive logistics and transportation system will enhance the quality of life for all Sabahans, bridging the urban-rural divide and fostering a sense of shared progress. It will position Sabah not just as a recipient of global trends but as a shaper of its own destiny—a state that is open, connected, and resilient in the face of change.
Charting a Course for the Future
Sabah’s journey towards becoming a sustainable logistics and transportation powerhouse is both a challenge and an opportunity. By embracing integration, technology, sustainability, inclusivity, and collaboration, the state can unlock its full potential and secure a prosperous future for generations to come. The vision outlined here is not merely aspirational; it is a practical blueprint for action, grounded in Sabah’s unique strengths and responsive to the demands of a rapidly changing world.
As Sabah stands on the threshold of transformation, the choices made today will shape its trajectory for decades. With courage, creativity, and collective effort, Sabah can bridge horizons—connecting its people, its economy, and its future to the wider world.
