The Department of Industrial Development & Research (DIDR), was formed in 1977 by a State Cabinet directive and place under the jurisdiction of the Ministry of Industrial Development, Sabah. DIDR is entrusted with the responsibility of promoting and coordinating industrial development in Sabah.


Sabah Economic Development Corporation (SEDCO) was established on December 21, 1971 following the introduction of the New Economic Policy (NEP), the strategies of which included the setting up of State economic development corporation (SEDC) in each state in the country to assist in achieving the goals of eradicating poverty & restructuring of society.

SEDCO was formed with the objectives of accelerating industrial and commercial development in the State & effectuating greater bumiputera participation in commerce and industry.

In order to fulfill these objectives, SEDCO has undertaken various economic activities on its own through joint ventures with investors, both local and foreign.

Today, SEDCO's spectrum of commercial activities includes manufacturing, property development, trading and services. While pursuing its commercial objectives, SEDCO remains committed to its responsibility to uplift the economy of bumiputera through its entrepreneurial development program.


K.K.I.P Sdn. Bhd. (KKIP) was incorporated on 24 February 1994, a fully-owned subsidiary of SEDCO and Sabah Urban Development Corporation Sdn. Bhd. (SUDC).

Kota Kinabalu Industrial Park (KKIP) in Sepangar is Sabah's first integrated industrial park located north of the state of capital. It is intended to catalyse the economic growth of the state. Due to the sheer size of the project, KKIPSB was later put directly under the state government of Sabah in 1996.


The Sabah State Government set up POIC Lahad Datu in 2005 to spearhead the development of palm oil downstream processing to add value to its 1.5 million hectares of oil palm plantations, to create jobs and business opportunities. Apart from palm oil/oil palm, POIC Lahad Datu is also poised to attract investments in port & logistics, biomass, bio refineries, oil & gas and related small and medium enterprises for the Halal Park @ POIC. Total investment in POIC now stand at RM3.3 billion.

POIC Lahad Datu is incorporated within the Sabah Development Corridor which aims to propel the state to a developed economy status by 2025. to-date, 1,700 acres in POIC Lahad Datu have been developed with infrastructure and utilities. The industrial park is planned to cover more than 4,400 acres of integrated industrial complex designed to cater to light, medium and heavy industries.

A Liquid Bulk and Dry Bulk terminal are presently in operation, while the Container terminal is under construction and due to be operational by 2017.

POIC Lahad Datu is envisaged to be not only a catalyst for the development of Sabah, but also the resource-rich BIMP-EAGA (Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area) which supplies the global market with palm oil, cocoa, rubber, timber and minerals, including coal and petroleum.


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Sabah is the biggest crude petroleum oil produced in Malaysia. To date, there is still significant potential in Sabah's deep water. SHELL as a leading oil and gas company in Sabah has discovered two deep-water projects namely Gumusut in 2003 and Malikai in 2004.

The Sabah State Government has recognised that the growth in the oil and gas industry is vital to the social and economic development of Sabah and Malaysia. For this purpose, The State Government took steps to establish in 2010 the Sipitang Oil and Gas Development Corporation (SOGDC), now known as Sabah Oil and Gas Development Corporation (SOGDC) to spearhead the development of Sipitang Oil and Gas Industrial Park (SOGIP).

SOGIP is well positioned to spearhead this drive to develop oil and gas downstream activities, since there is the availability of natural gas feedstock from Sabah's offshore production facilities.

PETRONAS Chemicals Group Berhad (PCGB) has given strong support to SOGIP by implementing the USD1.5 billion Sabah Ammonia and Urea Project (SAMUR) that has become the first tenant at SOGIP.

On 16 Feb 2012, another groundbreaking ceremony has been launched by PETRONAS Chemicals Group Berhad (PCGB), a subsidiary of PETRONAS for its Sabah Ammonia Urea (SAMUR) Project in Sipitang, Sabah by YAB. Dato' Seri Mohd. Najib Tun Hj. Abdul Razak, Prime Minister of Malaysia.

The Sipitang Oil & Gas Industrial Park (SOGIP), located within the Sabah, Brunei and Labuan economic triangle will become a focal point of new oil and gas investment in that region.