KOTA KINABALU: July 21, 2026 – The Sabah government will not proceed with the proposed development of a new industrial park in Kimanis due to high land acquisition costs, and is instead evaluating Beaufort as a more suitable alternative location.
Assistant Minister of Industrial Development, Entrepreneurship and Transport, Datuk Jonnybone Kurum, said the decision was made following an assessment which found that development at the identified site in Kimanis would involve more than 1,500 land grant owners.
He was responding to a question from Datuk Haji Pengiran Saifuddin Pengiran Tahir (Pantai Manis) during today’s sitting of the Sabah State Legislative Assembly.
According to him, MINDET, together with the Sabah Land and Survey Department, had previously conducted an initial assessment to identify suitable areas for industrial park development in Kimanis.
“Based on preliminary reviews, it is estimated that more than 1,500 land grant owners would be affected should the new industrial park development proceed at that location,” he said.
Jonnybone said this would carry significant financial implications for the state government, particularly involving land acquisition costs and the potential costs of relocating residents.
Taking these factors into account, he explained, the State Cabinet decided in February 2025 not to proceed with the development proposal at that site.
“This decision does not mean that Sabah’s industrialisation agenda has been halted. On the contrary, the ministry has taken proactive steps to explore alternative locations that are more suitable and feasible, including Beaufort,” he said.
He added that Beaufort is currently being evaluated because it is strategically located and requires less land acquisition compared to the original site in Kimanis, thereby reducing development costs and expediting project implementation.
Consequently, he said, the ministry is now coordinating assessments with relevant agencies to ensure the new industrial park can be implemented strategically, viably and with optimal economic returns for Sabah.
