July 10, 2026

Sabah, Malaysia, inks MoUs to advance mixed development and dairy industry

Two memoranda of understanding (MoUs) signed on July 9 are expected to drive the economic development of Sabah, Malaysia, through a mixed-development project in Tuaran and a proposed large-scale dairy industry project in Keningau, supporting the state's RM120 billion (US$28.3 billion) gross domestic product (GDP) target under Sabah Maju Jaya 2.0.

Agriculture, Fisheries and Food Industry Minister Datuk Jamawi Jaafar said the initiatives would help accelerate economic diversification from traditional reliance on natural resources towards higher value-added industries involving property development, industrial activities and modern agriculture.

The first MoU, between the Sabah Rubber Industry Board (LIGS) and KTI Sdn Bhd, will explore a proposed 500-acre (202-hectare) mixed development in Tuaran comprising shoplots, terraced houses, apartments and an industrial area. The second MoU brings together LIGS, the Sabah Veterinary Services Department and Farm Fresh Berhad to explore the Keningau Dairy Valley commercial dairy project.

Jamawi said the proposed projects remain at the preliminary stage but have the potential to attract private investment and technical expertise, strengthen the local dairy industry, improve self-sufficiency in fresh milk, meat and dairy products, and create employment and training opportunities for livestock breeders and Sabahans.

He also urged KTI to begin a feasibility study immediately and present its findings and investment value to the state government, while calling on LIGS, Farm Fresh and the Sabah Veterinary Services Department to expedite the collaboration in the interests of local breeders, environmental sustainability and animal welfare.

- Daily Express