2023 EXPLORATION OF NEW TREASURESTHROUGH THE BLUEECONOMY CONCEPTTOWARDS BEYOND LIMITS, UNLEASHING ECONOMY SABAH MAJUJAYA SABAH MAJU JAYA SECRETARIAT www.smj.sabah.gov.my
EXPLORATION OF NEW TREASURES THROUGH THE BLUE ECONOMY CONCEPT TOWARDS SABAH MAJU JAYA: BEYOND LIMITS, UNLEASHING ECONOMY EDITORS Syuhaida Ismail Nur Zulaikha Yusof Mazlinawati Abdul Majid Egbert Adolf Naintin Kota Kinabalu, Sabah 2023 In Conjunction with the Sabah Maju Jaya Synédrio 2023 on 14 December 2023
EXPLORATION OF NEW TREASURES THROUGH THE BLUE ECONOMY CONCEPT TOWARDS SABAH MAJU JAYA: BEYOND LIMITS, UNLEASHING ECONOMY is published by Sabah Maju Jaya Secretariat. Published by SABAH MAJU JAYA SECRETARIAT (SSMJ), Chief Minister Department Sabah, Level 15, Menara Kinabalu, Jalan UMS, Teluk Likas, 88400 Kota Kinabalu, Sabah. Tel: +6088-368650 E-mail: sabahmajujaya@sabah.gov.my Website: https://smj.sabah.gov.my/ First Published in 2023 Publication © Sabah Maju Jaya Secretariat Text © Maritime Institute of Malaysia All right reserved. No part of this publication may be produced, transmitted or stored in a retrieval system, in any form or by any means whether electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of publishers. The views and opinions expressed in this book are entirely those of the speakers and do not in any way reflect the position of publishers. Chief Coordinating Officer of Sabah Maju Jaya Secretariat: Datuk Haji (Datu) Rosmadi Datu Sulai, JP Head of Publications: Sabah Maju Jaya Secretariat Editors: Syuhaida Ismail, Nur Zulaikha Yusof, Mazlinawati Abdul Majid, and Egbert Adolf Naintin Cataloguing-in-Publication Data Perpustakaan Negara Malaysia A catalogue record for this book is available from the National Library of Malaysia ISBN 978-3-16-148410-0 Printed in Malaysia by Sabah Maju Jaya Secretariat (SSMJ), Chief Minister Department Sabah, Level 15, Menara Kinabalu, Jalan UMS, Teluk Likas, 88400 Kota Kinabalu, Sabah.
Table of Contents Preface Foreword by the Chief Minister of Sabah ii iv Officiating Remarks Datuk Seri Panglima Haji Hajiji Haji Noor Chief Minister of Sabah Keynote Address Datuk Haji (Datu) Rosmadi Datu Sulai, JP Chief Coordinating Officer Sabah Maju Jaya Secretariat Chief Minister Department SMJ SYNÉDRIO SPEECHES 2 Sustainable Seascape: The ESG-Driven Future of Sabah's Blue Economy Assoc. Prof. EUR. ING. Ts. Ir. Dr. Syuhaida Ismail Director of Research Maritime Institute of Malaysia (MIMA) Grabbing Opportunities and Leveraging Challenges in Malaysia’s Blue Economy Prof. Dr. Tamat Sarmidi Deputy Director Institut Kajian Malaysia dan Antarabangsa (IKMAS) Universiti Kebangsaan Malaysia (UKM) Marine Life: Soaring State Economy and People Assoc. Prof. Dr. Ching Fui Fui @ Faihanna Ching Abdullah Director Marine Borneo Research Institute Universiti Malaysia Sabah (UMS) Plenary Session 10 12 14 Interactive Forum Session 1 Blue Economy: Current and Future Potential Moderator: Dr. Muhamad Rias K V Zainuddin Senior Lecturer Faculty of Business, Economics, and Social Development Universiti Malaysia Terengganu (UMT) Sustainability of Marine Resources Datuk John Lo Thau Fah, JP Member Sabah Economic Advisory Council Empowerment of Sea Trade: Driving Growth of Blue Economy Datuk Jasmin Julpin Chairman Sabah Ports Authority Blue Economy: A Vision for Sustainable Development and Social Inclusivity Dr. Robin Bush Country Representative The Asia Foundation (Malaysia) 18 20 22 Foreword by the Sabah State Secretary vi 6
Table of Contents Interactive Forum Session 2 Potentials and Benefits: Marine Ecosystems and Production of Deep Ocean Resources 25 27 29 31 34 36 38 Moderator: Ts. Egbert Adolf Naintin Centre Head Centre of Ocean Law and Policy (OLAP) Maritime Institute of Malaysia (MIMA) Renewable Energy Potential in the Ocean through Blue Economy Datuk Ir. Abdul Nasser Abdul Wahid Chief Executive Officer Sabah State Energy Commission Exploring Potential of Ocean Thermal Energy Conversion (OTEC) for Sabah Blue Economy Prof. Dato’ Ir. Dr. A. Bakar Jaafar Founding Director and Research Fellow UTM Ocean Thermal Energy Centre (UTM OTEC) Universiti Teknologi Malaysia (UTM) Blue Economy: Sabah's Future Economy Datuk Ts. Dr. Ramzah Dambul Chief Executive Officer Institute Development Studies Sabah (IDS) Driving and Adding Value Economic Growth through Blue Economy Assoc. Prof. Dr. Firdausi Suffian Faculty of Administrative Science and Policy Studies Universiti Teknologi Mara (UiTM), Sabah Interactive Forum Session 3 Policy Empowerment: Stimulating Growth of Blue Economy Moderator: Dr. Gerald Jetony Secretary Sabah Biodiversity Centre Chief Minister's Department Capacity Policy Guarantees Sustainability Dr. Maklarin Lakim Director Sabah Parks Coastal and Island Coastal Control Policy Development Mr. Vitalis Moduying Director Department of Environmental Protection Direction of Sabah State Fisheries Policy Mr. Azhar Kassim Director Sabah State Fisheries Department
Table of Contents ROUND TABLE DISCUSSION: SUMMARY OF SMJ SYNÉDRIO 2023 PRESENTATION OF SMJ EKOB SURVEY FINDINGS AND SABAH BLUE 45 ECONOMY FRAMEWORK INPUT Assoc. Prof. EUR. ING. Ts. Ir. Dr. Syuhaida Ismail Director of Research Maritime Institute of Malaysia (MIMA) INPUT FROM THE COMMITTEE: INPUT 1 Mr. Maswandie Maimoon Director Sabah Ports and Harbours Department Ministry of Infrastructure Development INPUT 2 Mr. Azhar Kassim Director Department of Fisheries Sabah INPUT 3 Sr. Chua Ming Ling @ Alan Deputy Director of Lands and Surveys (Development) Department of Land and Survey Sabah INPUT 4 Dr. Maklarin Lakim Director Sabah Parks INPUT 5 Assoc. Prof. Dr. Ching Fui Fui @ Faihanna Ching Abdullah Director Borneo Marine Research Institute Universiti Malaysia Sabah (UMS) INPUT 6 Prof. Dr. Mohd. Kamarulnizam Abdullah Principal Fellow Institute of Malaysia and International Studies (IKMAS) Universiti Kebangsaan Malaysia (UKM) INPUT 7 Hj. Ahmad Ikram Abdullah Senior Policy Advisor The Asia Foundation (Malaysia) INPUT 8 Prof. Dr. Tamat Sarmidi Deputy Director Institute of Malaysian and International Studies (IKMAS) Universiti Kebangsaan Malaysia (UKM) DIRECTION OF ROUND TABLE DISCUSSION Assoc. Prof. EUR. ING. Ts. Ir. Dr. Syuhaida Ismail Director of Research Maritime Institute of Malaysia (MIMA) 50 51 53 54 55 56 57 58 59 CHAIRMAN’S REMARKS YBhg. Datuk Haji (Datu) Rosmadi Datu Sulai, JP Chief Coordinating Officer Sabah Maju Jaya Secretariat Chief Minister Department CHIEF OPERATING OFFICER’S REMARKS Mr. Ramlee Kariah Chief Operating Officer Sabah Maju Jaya Secretariat Chief Minister Department 42 44
SABAH MAJU JAYA DEVELOPMENT PLAN 1.0: 2021-2025 PREFACE
Welcome to the culmination of collective exploration and visionary thinking encapsulated in "Exploration of New Treasures Through the Blue Economy Concept Towards Sabah Maju Jaya: Beyond Limits, Unleashing Economy." This anthology stands as a testament to the groundbreaking discussions and insights that have emerged from the Sabah Maju Jaya Synédrio 2023 hosted by Sabah Maju Jaya Secretariat, held on the vibrant shores of Kota Kinabalu. Through this book, we endeavour to weave together the multifaceted facets of the concept of Blue Economy towards Sabah Maju Jaya Development Plan 1.0 (2021-2025), shedding light on its potential to propel Sabah towards a prosperous and sustainable future. Within these pages, a tapestry of perspectives, research findings, and visionary narratives contributed by esteemed experts and scholars is presented, each offering a unique lens through which to comprehend and harness the wealth concealed within Sabah's marine landscape. This book is more than a compilation of scholarly contributions through the Sabah Maju Jaya Synédrio 2023; it is a testament to the concerted ambition and dedication to steer Sabah towards the pinnacle of sustainable growth and development. As editors, it is our privilege to present this compendium, hoping that its contents serve as a guiding compass for policymakers, entrepreneurs, researchers, and even potential investors, driving them towards informed decisions and transformative actions in ensuring the success of the Sabah Maju Jaya Development Plan 1.0 (2021-2025). We extend our deepest gratitude to all contributors whose invaluable insights have enriched this book. May this book ignite a wave of inspiration, innovation, and collaboration, ushering Sabah towards a future where the Blue Economy becomes synonymous with progress, resilience, and inclusive prosperity. PREFACE ii Editors
FOREWORD BY THE CHIEF MINISTER OF SABAH SABAH MAJU JAYA DEVELOPMENT PLAN 1.0: 2021-2025
It is with great pleasure that I extend my warmest greetings to all who engage with this compendium, "Exploration of New Treasures through the Blue Economy Concept Towards Sabah Maju Jaya: Beyond Limits, Unleashing Economy." As we convene for the Sabah Maju Jaya (SMJ) Synédrio 2023 at the esteemed Le Meridien Hotel in Kota Kinabalu, this compilation stands as a testament to our dedication towards Sabah's growth and prosperity. Sabah Maju Jaya Development Plan 1.0 (2021-2025) is not merely a vision—it is a commitment to chart a course towards a future, where sustainable development and economic progress intertwine harmoniously. As aligned with the Sabah Maju Jaya Development Plan 1.0 (2021-2025), envisioned through the diligent efforts of Sabah Maju Jaya Secretariat, this compendium serves as a cornerstone in our journey. The concept of the Blue Economy has emerged as a beacon of hope, encapsulating the vast potential hidden within our marine landscapes. Through these pages, we unfold narratives, research findings, and visionary ideas curated by experts and scholars who share our zeal for propelling Sabah's economic tapestry towards unprecedented horizons. I extend my deepest appreciation to Sabah Maju Jaya Secretariat, the Maritime Institute of Malaysia (MIMA) and The Asia Foundation (TAF) as the editors, whose dedication and expertise have enriched this compendium. Your contributions fuel our ambition and fortify our resolve to nurture a Sabah that thrives in the embrace of sustainable growth and inclusive prosperity. Let this compendium be more than a repository of knowledge—let it be a catalyst for collaboration and innovation, guiding us towards a Sabah that stands tall, transcending boundaries and flourishing in the embrace of the Blue Economy through Sabah Maju Jaya Development Plan 1.0 (2021-2025). Together, let us embark on this journey towards Sabah Maju Jaya Development Plan 1.0 (2021-2025)—a future where opportunities abound, prosperity is shared, and our natural treasures are safeguarded for generations to come. Chief Minister of Sabah YAB DATUK SERI PANGLIMA HAJI HAJIJI HAJI NOOR iv
FOREWORD BY THE SABAH STATE SECRETARY SABAH MAJU JAYA DEVELOPMENT PLAN 1.0: 2021-2025
In today's dynamic global landscape, harnessing the potential of our natural resources while preserving the delicate balance of our ecosystems has never been more critical. The Blue Economy concept, with its focus on sustainable and responsible utilisation of marine resources, emerges as a beacon of hope and opportunity for Sabah. I am deeply honored to extend my heartfelt congratulations to YBhg. Datuk Haji (Datu) Rosmadi Datu Sulai, the Chief Coordinating Officer of Sabah Maju Jaya Secretariat, whose leadership, foresight, and unwavering commitment have been instrumental in steering Sabah Maju Jaya Secretariat towards embracing the Blue Economy paradigm. His dedication to fostering inclusive development and harnessing the vast potential of Sabah's maritime resources is truly commendable. As we embark on this journey outlined within these pages, we delve into a comprehensive exploration of strategies, ideas, and innovations poised to transform Sabah's blue economic landscape. Through collaborative efforts and a shared vision, Sabah Maju Jaya Secretariat lights us to transcend boundaries, unlocking the true potential of the Blue Economy and propelling Sabah towards unprecedented heights of progress and prosperity. "Exploration of New Treasures Through the Blue Economy Concept Towards Sabah Maju Jaya: Beyond Limits, Unleashing Economy” serves as a catalyst, offering invaluable insights, perspectives, and roadmaps for policymakers, industry leaders, researchers, and all stakeholders committed to shaping a sustainable and thriving future for Sabah. I extend my sincere appreciation to all the contributors, researchers, and individuals whose expertise and dedication have enriched the content of this book. May this collective effort inspire and guide us towards a future where Sabah flourishes, harnessing the wealth of its seas for the betterment of all. Sabah State Secretary YB DATUK SERI PANGLIMA SR. HAJI SAFAR UNTONG, JP vi
OFFICIATING REMARKS SABAH MAJU JAYA DEVELOPMENT PLAN 1.0: 2021-2025
Bismillahirrahmanirrahim. Assalamualaikum Wrt. Wbt. Salam Malaysia MADANI. Salam Sabah Maju Jaya. Alhamdulillah, we express our gratitude to Allah SWT for allowing us to gather today for this historic event. Congratulations and heartfelt thanks are extended to the organising committee from the Sabah Maju Jaya Secretariat for their dedication to make this programme a success. This programme is named Sabah Maju Jaya Synédrio 2023, and it has a theme of Beyond Limits, Unleashing Economy. This programme is significant because it provides a platform for experts from various backgrounds to gather, including speakers and panellists, such as senior government officials from the state and federal levels, senior officers from government-related companies, and leaders of non-governmental organisations. All of these individuals play crucial roles in determining the direction of development in the state of Sabah. YB DATUK SERI PANGLIMA SR. HAJI SAFAR UNTONG, JP Sabah State Secretary sabahmajujaya@sabah.gov.my OFFICIATING REMARKS 2 Your Excellencies, distinguished guests, ladies, and gentleman, The direction of Sabah Maju Jaya Development Plan 1.0 (2021-2025), launched on 29 March 2021, outlines the state's development strategy by optimising all available resources in Sabah. The Sabah Maju Jaya Development Plan 1.0 (2021-2025) is aligned with various national development agendas such as the 12th Malaysia Plan (12MP) and Malaysia MADANI, as well as international initiatives like the United Nations Sustainable Development Goals (UNSDG). With this alignment, the nature of the Sabah Maju Jaya Development Plan 1.0 (2021-2025) inherently provides space to explore new methods or resources to enhance economic development, public well-being, and simultaneously preserve the natural ecosystem. These aspects are embedded in the Sabah Maju Jaya Development Plan 1.0 (2021-2025) under the element J: Infrastructure Network and Green Sustainability. Therefore, on this basis, the Sabah Maju Jaya Development Plan 1.0 (2021-2025) fundamentally supports the Blue Economy development agenda in the state of Sabah. The concept of the Blue Economy was introduced in 2012 by the UN. It refers to the sustainable utilisation of marine resources for economic growth, improved living standards, and job creation, while simultaneously preserving the sustainability of marine ecosystems. Furthermore, at the Association of Southeast Asian Nations (ASEAN) conference in Brunei Darussalam in 2021, delegates, including Malaysia, agreed to adopt the Blue Economy in the ASEAN region. In Malaysia, the Blue Economy has been incorporated into the 12MP (2021-2025) as one of the approaches to boost the country's economy. In line with the presented 2024 Budget, the State Government aims to explore the Blue Economy to facilitate economic development, create job opportunities, and improve the standard of living. The Blue Economy holds significant potential in various fields. Among the identified sectors for the state of Sabah are Fisheries and Aquaculture, Shipping and Transportation (Logistics), Tourism, Renewable Energy, Mineral Resources, Biotechnology and Pharmaceuticals, Blue Carbon, Waste Management and Pollution Control, Research and Development (R&D), and Marine Infrastructure. represented by Sabah State Secretary
sabahmajujaya@sabah.gov.my 3 Your Excellencies, distinguished guests, ladies, and gentleman, Speaking about the Blue Economy, we must realise that what was once merely a concept in economics in the past has now become a necessity to explore. Moreover, the geographical position of the state of Sabah is highly strategic, surrounded by a vast ocean covering 37,300 square kilometres, with a continental shelf of 116,800 square kilometres, and a coastline stretching 2,383 kilometres. With the marine biodiversity and wealth that Sabah possesses, its potential knows no bounds. As a responsible government concerned about the long-term sustainability of the people and the state, I want to emphasise how committed and serious the government is in developing the Blue Economy, and understanding its significant implications for the people, the environment, and our collective future. In the effort to ensure the success of Blue Economy development, there are several crucial aspects that require attention. Firstly, is the aspect of environmental sustainability. Our natural resources need to be preserved and protected so that they can be enjoyed by future generations. Initiatives for marine conservation and sustainable harvesting practices should be the primary focus in every developmental step. Secondly is the aspect of human capital development. To achieve excellence in the Blue Economy, our society needs to be equipped with sufficient knowledge and skills. Education and training initiatives in the field of the Blue Economy need to be enhanced to ensure that future generations have the capability to manage marine resources wisely. Thirdly is the aspect of infrastructure development. The development of ports, marine facilities, and efficient logistics systems is crucial to facilitate business and trade activities in this field. Investment in infrastructure will open new opportunities and stimulate economic growth in coastal areas. Fourthly is the aspect of technological development. The application of modern technology in the management of marine resources can enhance economic efficiency and reduce negative impacts on the environment. Continuous innovation in research and development to advance sustainable and efficient technologies should be emphasised. Your Excellencies, distinguished guests, ladies, and gentleman, Turning back to today's programme, it is not merely about lectures and discussions. Instead, it is a purposeful engagement platform aimed at creating an economic framework that will determine the direction of the Blue Economy for the state of Sabah. Through the content of this programme, participants are provided with exposure and a more explicit understanding of the untapped potential of marine resources in Sabah, examining innovative solutions to help shape a balanced direction between economic growth and environmental conservation. Today is filled with in-depth knowledge-sharing sessions from various panels through lectures and interactive forums, providing us with a comprehensive understanding of the challenges and opportunities that lie ahead. This is where ideas will sprout and merge, and the outlines of the basic framework for the Sabah Blue Economy plan will take shape. The best ideas often arise from the collision of experiences and perspectives. Sabah is not just a state; it is a human community, and I believe in the power of collaboration, in the strength that emerges when we share knowledge and resources for common goals and interests. OFFICIATING REMARKS
sabahmajujaya@sabah.gov.my 4 This direction will not be successfully achieved without research and development (R&D) into various variables in the Blue Economy, as well as support and encouragement from experienced investors both domestically and internationally. Therefore, with this awareness, the programme will not conclude here; instead, it will be followed by a roundtable discussion session tomorrow to formulate and draft the final framework for the Sabah Blue Economy. Furthermore, another international conference will be organised next year, inviting experienced investors to participate, and providing a platform for industry professionals to connect and explore collaborative opportunities. I urge everyone to actively participate, share your valuable ideas, and contribute to the discussions. The success of this programme lies in the wealth of ideas generated and the collective commitment we make to drive the Blue Economy agenda forward. Once again, sincere thanks to the chairman and organising committee members, as well as everyone involved in making this programme a success. I hope that such close collaboration can continue. Therefore, with Bismillahirrahmanirrahim, I officially launch Sabah Maju Jaya Synédrio 2023: Beyond Limits, Unleashing Economy. Thank you. OFFICIATING REMARKS
KEYNOTE ADDRESS SABAH MAJU JAYA DEVELOPMENT PLAN 1.0: 2021-2025
Initially, we proposed to the YAB Chief Minister a focus on mitigating poverty. Recognising the need for a new income-generating avenue to boost Sabah's economic activities, we identified the ocean's potential. In response, the YAB Chief Minister directed Sabah Maju Jaya Secretariat to prepare a working paper for presentation to the State Cabinet, seeking approval. Subsequently, the YB Minister of Finance announced in the 2024 State Budget that Sabah will host the International Conference on Blue Economy in February 2024, highlighting the Blue Economy as the frontier for Sabah's progress. As a kickstart, we inaugurated Sabah Maju Jaya Synédrio 2023: Exploration of New Treasures through the Blue Economy Concept in the State of Sabah, themed "Beyond Limits, Unleashing Economy." This event featured an Experts Round Table Discussion aimed at establishing a framework for the Sabah Blue Economy. This serves as an initial step to provide guidance for the state, national, and future generations. YBHG. DATUK HAJI (DATU) ROSMADI DATU SULAI, JP Chief Coordinating Officer Sekretariat Sabah Maju Jaya sabahmajujaya@sabah.gov.my KEYNOTE ADDRESS 6 Assalamualaikum. Selamat Pagi. Salam Sejahtera. Salam Malaysia MADANI. Salam Sabah Maju Jaya. The Blue Economy in Sabah is a recent development. While the United Nations (UN) initiated it in 2012, ASEAN embraced it in 2018, and Indonesia has formulated a Blue Economy framework. Malaysia is currently in the developmental phase. Sabah is taking the lead in the Blue Economy, as indicated by the National Blue Economy Development. While the United Nations and the World Bank have defined the Blue Economy in their own ways, Sabah has uniquely defined it to encompass both living and non-living resources in the ocean and rivers. This broader definition acknowledges the significant role rivers play, serving as essential resources for aquaculture. Sabah boasts its river management system, known as "Tagal," which can be utilised as a guiding principle to ensure the sustainability of the Blue Economy in Sabah. We seldom discuss the ocean; our conversations mostly revolve around land. When we signed the Malaysian Agreement in 1963, the inclusion of the ocean should have been considered. Sabah is abundantly rich in ocean resources, with a significant portion of its economy centered on the sea, encompassing tourism, seafood, oil, gas, and more. Hence, the Blue Economy initiatives align seamlessly with the Sabah Maju Jaya Development Plan 1.0: 2021-2025. Sabah's population is 3.59 million, and a considerable number of Sabahans are engaged in Blue Economy activities, particularly fishing and tourism. The total area in Sabah is 227,720 km², including the continental shelf (116,800 km²), the ocean (37,300 km²), the coastline (2,383 km²), and the river watershed (66,321 km²). Leveraging land resources yields an RM8 billion net revenue. By directing attention to the ocean, which doubles the land area, the potential revenue can reach RM16 billion. However, it is crucial to establish a framework applicable not only at the national level but also at the global and neighbouring country levels.
Exploration at sea does not demand extensive infrastructure, unlike on land, such as electricity and water supply. With due care, we believe God will favourably increase our endeavours. Marine life, abundant and diverse, does not require specific identification and can be found in various water areas. Strong data is crucial to ensure the effectiveness of this framework. Operating within the Exclusive Economic Zone (EEZ) allows us a 200 nautical miles (nm) reach, a potential largely untapped. Vietnam and the Philippines are consistently active in the ocean, surpassing our limited engagement. Our focus remains fixated on geopolitics, diverting attention from economic pursuits. While acknowledging geopolitical tensions, there's a pressing need to shift our concentration toward economic activities. This shift will bring us face-to-face with six countries, including China. We have identified the components of the Blue Economy for Sabah, which encompass four main activities with 14 industries: 1. Harvesting of living resources; 2. Extraction of non-living resources; 3. Commerce and trade in and around the oceans; and 4. Response to ocean health challenges. Venturing into pharmaceuticals and chemicals presents a new opportunity for us. To support these activities, we strive to attract investors, aiming to enhance Sabah's income and revenue for the next generation. Sabah holds numerous possibilities, comparable to countries like Thailand and Vietnam, especially in terms of seabed mining, an area where we have yet to extensively explore but must do so promptly. Additionally, in the realm of renewable energy, during our visit to China, Datuk Ir. Abdul Nasser Abdul Wahid, Chief Executive Officer of the Sabah State Energy Commission identified Tawau as suitable for thermal energy exploration, presenting another avenue for development. In addressing water supply concerns, desalination is an option worth considering. However, it is imperative to address other aspects, including political issues and more. Rivers are integral to the Blue Economy, and it is noteworthy that 45% of trade occurs through ocean routes, emphasising the importance of infrastructure, transport, and trade. Coastal tourism stands as one of the most mature industries, emphasising our commitment to preserving mangroves, coral, shorelines, and more. To safeguard the value-added to these industries, we aim to enhance our efforts. Preserving the 12 nm is not only preferable but mandatory; our focus is on preserving and expanding mangrove areas, constituting 43% of Sabah. Mangroves play a crucial role in supporting our living resources, particularly amid climate change and business ventures. In the realm of technology and research and development (R&D), we collaborate with Universiti Teknologi PETRONAS (UTP) and Universiti Malaysia Sabah (UMS). With vast experimental areas, we have the potential to innovate, exemplified by a novel carbon capture device to further protect our coastal environment. Simplifying the success of the Blue Economy into five critical issues, we prioritise good governance, acknowledging the complexity due to varied international and national regulations. Benchmarking practices, financing through Blue Sukuk, and incentivising investors are key considerations. While we anticipate federal incentives, exploring state-level incentives and leveraging the Chief Minister's influence can be pivotal. The introduction of a Blue certification, overseen by those actively engaged in ocean activities, is envisioned to stimulate new ideas for the Sabah Blue Economy— spanning areas like blue food and innovative technologies. sabahmajujaya@sabah.gov.my KEYNOTE ADDRESS 7
However, at Sabah Maju Jaya Secretariat, our approach transcends thinking outside the box; instead, we encourage thinking with no limits. This mindset benefits not only the state of Sabah but also everyone involved. Throughout these endeavours, our inspiration is grounded in the 3 S's: safe, secure, and sustainable. Our overarching aspiration is to achieve sustainability in all our planned initiatives. Thank you. sabahmajujaya@sabah.gov.my KEYNOTE ADDRESS 8
PLENARY SESSION SABAH MAJU JAYA DEVELOPMENT PLAN 1.0: 2021-2025
Assoc. Prof. EUR. ING. Ts. Ir. Dr. Syuhaida Ismail started her presentation by emphasising that the Malaysian state of Sabah stands out as a biodiversity hotspot, boasting 75% of the nation's coral diversity. The region's rich ecosystems, particularly coral reefs and mangrove swamps hosting endemic animals, contribute significantly to its environmental wealth, presenting untapped potential for further development in the ecotourism industry. ASSOC. PROF. EUR. ING. TS. IR. DR. SYUHAIDA ISMAIL Director of Research Maritime Institute of Malaysia (MIMA) sabahmajujaya@sabah.gov.my PLENO SESSION 1 10 According to Assoc. Prof. EUR. ING. Ts. Ir. Dr. Syuhaida, despite its natural beauty, Sabah faces challenges shared globally, such as rising temperatures attributed to increase in energy consumption. The insufficient focus on renewable energy in Malaysia contributes to greenhouse gas (GHG) emissions. The maritime industry, a crucial part of Sabah's economy, witnesses a rising trend in GHG emissions, with a prediction to increase to about 90 -130% by 2050, mainly due to the growing fleet of sea vessels. In addition, the fishing industry faces issues of overfishing. According to a report by the United Nations (UN) Food and Agriculture Organization (FAO), data for year 2020 showed almost 95% of the world’s fish stocks are estimated to be either overfished or fished to their biological limit. If overfishing continues, experts predict that by the year 2048, none of the species currently being fished for food will have survived. However, the challenges affecting marine ecosystems extend beyond overfishing. The United Nations Environment Programme (UNEP) highlights that nearly 80% of worldwide wastewater is dumped into the ocean without treatment. This untreated discharge contributes to climate change, damaging coral reefs and other key ecosystems. The interconnected issues include overfishing, which threatens the stability of fish stocks, and nutrient pollution that contributes to the creation of dead zones in the sea. Harmonising with the Sabah Maju Jaya Development Plan 1.0 (2021-2025), distinguished by its pillars of digital government, effective delivery, governance excellence, fiscal sustainability, and financial facilities, a profound nexus emerges with the Blue Economy. The strategic essence of the Sabah Maju Jaya Development Plan 1.0 (2021-2025), focusing on the seascape, seamlessly aligns with the comprehensive vision of the United Nations' Blue Economy concept, encompassing renewable energy, fisheries, maritime transport, waste management, tourism, and climate change. To further strengthen the Sabah Maju Jaya Development Plan 1.0 (2021-2025), Assoc. Prof. EUR. ING. Ts. Ir. Dr. Syuhaida suggested incorporating Environment, Social, and Governance (ESG) principles. As the world intensifies its focus on reducing carbon footprints, ESG principles emerge as an indispensable and all-encompassing risk management tool, evaluating sustainability and societal impact beyond the confines of traditional stakeholders.
sabahmajujaya@sabah.gov.my PLENO SESSION 1 11 Originally from Perlis, Assoc. Prof. EUR. ING. Ts. Ir. Dr. Syuhaida Ismail is a graduate of Doctor of Philosophy (Ph.D.) in Civil Engineering, Universiti Teknologi Malaysia (UTM), a Master's Degree in Engineering - Project Management from the University of Melbourne, Australia and a Bachelor's Degree in Engineering (Civil - Construction Management), UTM. As the Director of Research of the Maritime Institute of Malaysia (MIMA), her current research specialisation is in the field of Marine Environment, Maritime Economics, and Maritime Education and Training Policy. She has received a total of 133 awards and honours from various parties at home and abroad. In addition, she has also successfully achieved several major professional recognitions, including ASEAN Chartered Professional Engineer (ACPE) and European Engineer registered under the European Federation of National Engineering (FEANI). Throughout her career, more than 400 publications were produced and 100 research projects were carried out, where she also had experienced as a lecturer since 2007.
However, global industrial revolutions led to a disregard for sustainability in marine exploration. The United Nations (UN) had to address this by introducing concepts like Environmental, Social, and Governance (ESG), Sustainable Development Goals (SDG), and the Blue Economy. Prof. Dr. Tamat also quoted a statement by Joseph Stiglitz, who stated that 'to measure is to manage.' In Malaysia, this principle holds true as maritimerelated economic activities contribute approximately 23% to the country's Gross Domestic Product (GDP). By sector, fisheries and aquaculture contribute about 21% to Malaysia's overall Blue Economy, marine tourism and recreation 26%, shipping and ports 39%, and others. However, these figures are just an estimation, and there is uncertainty in the actual contribution of the Blue Economy to the national economy, leading to discrepancies in the reported data. PROF. DR. TAMAT BIN SARMIDI Deputy Director Institute of Malaysian and International Studies (IKMAS) Universiti Kebangsaan Malaysia (UKM) sabahmajujaya@sabah.gov.my PLENO SESSION 2 12 Prof. Dr. Tamat bin Sarmidi started his presentation by explaining the concept of the Blue Economy that has become ingrained in Malaysian society, extending beyond modern economics to the era of independence. Traditionally, Malaysian communities engaged in worship ceremonies or rituals, seeking permission from sea deities before activities like fishing, emphasising the early emphasis on sustainability and preservation before exploring the seas. Prof. Dr. Tamat also revealed that the UN uses a 4-digit code in the Blue Economy Valuation Toolkit (BEVTK), developed for Africa. It identifies 48 economic activities relevant to the Blue Economy. The challenge in Malaysia is the use of a 2-digit Malaysia Standard Industrial Classification (MSIC) classification for the Blue Economy. Through collaboration with Sabah Maju Jaya Secretariat, a more detailed input-output (IO) table can be developed specifically for Sabah. Universiti Kebangsaan Malaysia (UKM) is willing to cooperate with the Maritime Institute of Malaysia (MIMA), the strategic partner of the Sabah Maju Jaya Synédrio 2023 to develop a 6-digit MSIC classification for more accurate insights. With a detailed MSIC classification, Sabah can make a significant contribution during the ASEAN- Gulf Cooperation Council (GCC) Summit hosted by Malaysia in 2025. Prof. Dr. Tamat also stressed about the existing acts, such as the Fisheries Act 1985, that are outdated. According to him, industry proposals for adjustments to align with current needs should be considered. Key stakeholders like the Ministry of Economy and the Maritime Institute of Malaysia (MIMA) play a critical role in developing a robust Blue Economy framework.
sabahmajujaya@sabah.gov.my PLENO SESSION 2 13 From an academic perspective, eight drivers (8i) can propel the Blue Economy, namely infrastructure, infostructure, intellectual capital, integrity systems, incentives, institutions, interaction, and internationalisation. As an immediate suggestion, raising awareness and public education about the importance of marine conservation is crucial. The establishment of a central authority is essential for better management due to current overlapping jurisdiction issues. Improvements in data collection, as discussed, also play a crucial role. In the short term, the development of a comprehensive national strategic plan for the Blue Economy is necessary while for the long term, investment in research and development is crucial to fully harness the potential of the Blue Economy. Prof. Dr. Tamat bin Sarmidi is a Doctor of Philosophy (Ph.D. Economics) graduate from the University of Leicester, United Kingdom (UK). He also holds a Master's Degree (Economics) from Universiti Putra Malaysia (UPM) and a Bachelor's Degree (Economics) from the International Islamic University Malaysia (IIUM). He has 28 years of teaching experience. His research focus areas are Applied Macroeconomics, Applied Econometrics and International Economics. During his tenure as a lecturer in the field of Economics, he has received several awards and honours, such as Excellent Teaching Awards (Universiti Kebangsaan Malaysia (UKM)), Excellent Service Award (UKM) three times and MAPIM-KPM 2014 Best Paper Award (Ministry of Higher Education (MoHE)). He has also received research grants from 2018 to 2023 and has been awarded the best research paper twice. Currently, he plays the role of an expert to the special committee on economics and finance of the Malaysian Parliament, "Alternate Member" Malaysia to the Research Institute Network (RIN) Tokyo, "Subject Matter Expert" Economy (SME) for the Malaysian Urban Observatory (MUO) Plan Malaysia and Assessor FRGS and KPT Translational Grants.
According to Borneo Marine Research Unit (BMRI) observations, Sabah's ocean area is twice as large as its land area, surrounded by three distinct seas. In terms of fish landings, the East Coast records higher numbers compared to the West Coast, possibly linked to nutrient concentrations in both regions. Assoc. Prof. Dr. Faihanna also highlighted the significant potential for the development of the aquaculture sub-sector. This approach, centred on the cultivation of marine life rather than traditional fishing, promises a more reliable income stream for entrepreneurs. In stark contrast to the uncertainty faced by traditional fishermen, whose livelihoods hinge on the unpredictable outcomes of fishing expeditions influenced by weather conditions, aquaculture entrepreneurs find stability intending to farm fish, particularly hatchlings in carefully managed cages. ASSOC. PROF. DR. CHING FUI FUI @ FAIHANNA CHING ABDULLAH Director Borneo Marine Research Institute Universiti Malaysia Sabah (UMS) sabahmajujaya@sabah.gov.my PLENO SESSION 3 14 Assoc. Prof. Dr. Faihanna Ching Abdullah opened her speech by magnifying the beauty of Sabah, which is also known as the "Land Below the Wind". It is not only celebrated for its diverse marine life but also for the beauty of its islands and vast seas. The primary contributors to this rich marine life are bacteria and planktons, acting as agents capable of supplying nutrients to the seas of Sabah. Assoc. Prof. Dr. Faihanna underscored the importance of the tourism sector based on the Blue Economy in boosting the state's economy. A well-preserved marine ecosystem directly encourages the breeding of marine life, such as coral reefs, turtles, sharks, rays, and more, potentially attracting tourists to Sabah. Consequently, the influx of tourists will have socio-economic impacts, especially on the local population involved in tourism-related businesses. Equally emphasised is the intellectual wealth inherent along Sabah's coastline, encapsulated in the skills, values, and natural knowledge possessed by coastal fishermen. Assoc. Prof. Dr. Faihanna underscored the imperative to not only recognise but also preserve and transmit this intellectual wealth to successive generations. With a nod to the profound expertise of coastal fishermen, who navigate the sea with a deep understanding acquired through hands-on experience rather than reliance on high-tech equipment, the call is made to cherish and perpetuate these invaluable maritime traditions.
sabahmajujaya@sabah.gov.my PLENO SESSION 3 15 A native of Sabah, Assoc. Prof. Dr. Ching Fui Fui @ Faihanna Ching Abdullah is a graduate of Doctor of Philosophy (PhD) in the field of Aquaculture from Kindai University (Japan) in 2012. Meanwhile, she has a Master's and Bachelor's Degree in the same field from Universiti Malaysia Sabah (UMS) and is currently a specialist in the field of fish breeding and Food Safety. In the research arena, she has led more than 30 national and international research grants and published nearly 84 scientific articles. She is also the recipient of the UMS Young Researcher Award in 2018. Most recently, she was honoured to deliver two keynote speeches at an international conference in Japan on the Malaysian Carp Aquaculture landscape. In addition to research, she is also active in the transfer of aquaculture knowledge and technology to local communities throughout Malaysia. She is also a consultant for several aquaculture projects in Malaysia, Indonesia and Japan and is the first Malaysian to enter the 'Women in Aquaculture' space published in an international publication. Currently, she is the Director of the Borneo Marine Research Institute and she intends to continue to be active in the field of aquaculture research and development so that it can be fully utilised especially in Sabah.
INTERACTIVE SESSION SABAH MAJU JAYA DEVELOPMENT PLAN 1.0: 2021-2025
Moderator DR. MUHAMMAD RIAS K. V. ZAINUDDIN Senior Lecturer Faculty of Business, Economics, and Social Development Universiti Malaysia Terengganu (UMT) Dr. Muhamad Rias K. V. Zainuddin is originally from Melaka Tengah, Melaka, he received his early education at SK Bandar Hilir and SMK Tinggi Melaka before continuing his studies at STPM level at SMK Tinggi Melaka and at the Bachelor's Degree level in Economics (Natural Resources) at Universiti Malaysia Terengganu (UMT). After that, he continued his studies with a Master's Degree in Econometrics and a Doctor of Philosophy in International Trade at Universiti Kebangsaan Malaysia (UKM). He has more than 5 years of experience in the world of research. He has economic expertise in the field of International Trade, Quantitative Economics, Applied Macroeconomics, and Econometrics. He is also actively involved in the world of research through the publication of articles in indexed journals and the presentation of papers in conferences organised at home and abroad. In addition, he was involved in the formulation of the Shared Prosperity Vision Strategic Plan 2030 (SPV2030) as a consultant. INTERACTIVE SESSION 1 Blue Economy: Current and Future Potential
According to Datuk John Lo Thau Fah, historically, the state's economic dependence on resources from the forestry sector has resulted in an annual income of approximately RM 200 million. Concurrently, the palm oil industry, dominated by external entities with a 90% ownership stake, while the remaining share is held by Sabah residents, plays a significant role in shaping the economic landscape. The advent of the Blue Economy introduces a transformative economic sector with the potential to yield up to three times more income than traditional land-based sectors. This heightened economic promise is attributed to Sabah's invaluable assets, notably a 1,000 km coastal zone and expansive marine areas. It is crucial to meticulously identify and enumerate all the benefits that the Blue Economy can derive from these assets. DATUK JOHN LO THAU FAH, JP Member Sabah Economic Advisory Council sabahmajujaya@sabah.gov.my INTERACTIVE SESSION 1 Blue Economy: Current and Future Potential 18 Confronting challenges, particularly those rooted in legislation, such as the 2012 Territorial Sea Act 2012, which may restrict the state's maritime border to only three nautical miles, becomes imperative. The state government must proactively assert its rights over the exclusive economic zone, extending up to 200 nautical miles (nm) for Sabah's marine areas. To fully unlock the advantages of the Blue Economy, strategic actions are imperative. These include the enactment of legislation to safeguard the state's maritime area rights, the establishment of a robust economic framework, the formulation of an investor-friendly economic policy, and the assurance of political stability. In terms of financial considerations, advancing the Blue Economy presents no insurmountable challenges. Numerous foreign investors, financial institutions, and international companies stand ready to invest in this promising sector, underscoring the potential for robust financial support.
sabahmajujaya@sabah.gov.my INTERACTIVE SESSION 1 Blue Economy: Current and Future Potential 19 Datuk John Lo Thau Fah, JP is the Managing Director of Carlota's Borneo Group and is a well-known and respected personality in the business sector in Sabah. He has extensive experience especially in the field of finance and business. He is a graduate of Bachelor of Social Science in Economics from Loughborough University of Technology, Leicestershire, England. He started his professional career as a "Covenanted Officer" at Bank Standard Chartered in Peninsular Malaysia and Sabah from 1971 to 1974. Next, he joined Credit Corporation Malaysia as "District Manager" for Sabah and Sarawak in 1974-1978. His valuable experience in the financial field continued to grow when he later led UOB branches in Singapore and Sabah from 1978 to 1986. In 1988, he was entrusted as Chief Executive Officer at Sabah Bank Berhad. He was also a Corporate Advisor at The Kuok Group's Perlis Plantation Bhd from 1990 to 2006, as well as leading Karambunai Resort Sdn. Bhd. as Deputy Executive Chairman from 2007 to 2010. In addition to playing a role as a player in the financial and business sectors, he is also an important figure in the economic development and tourism of the state of Sabah. Datuk John also played an important role in various corporate bodies, statutory bodies and State Government Linked Companies (GLC) in Sabah such as the Sabah Tourism Board and Sri Pelancongan Sabah Sdn. Bhd. Datuk John's involvement in the industry is also translated through his leadership as Chairman of the Sabah International Hotel Organization and as a member of the Sabah Economic Advisory Council (SEAC).
Datuk Mohd. Jasmin Julpin explained the context of maritime trade and its impact on economic growth, where the Sabah Ports Authority (LPPS) has played a pivotal role since 1968. The LPPS defines the Blue Economy as a maritime economy driven by port and shipping activities, involving the handling of commercial cargo through commercial ships in Sabah's waters under LPPS jurisdiction. There are two crucial components in these portactivities: those at the wharf on the mainland and those in the waters, covering eight ports in Sabah, ferry terminals, transshipment activities, and barter trade. According to LPPS data, cargo handling in Sabah's ports has significantly increased, reaching an average of 34 million metric tons from 2019 to 2022, with approximately 9,000 ships calling at the eight ports annually. DATUK MOHD. JASMIN JULPIN Chairman Sabah Port Authority sabahmajujaya@sabah.gov.my 20 According to Datuk Mohd. Jasmin, LPPS recognises that activities in the waters will be a major source of revenue in the coming years and has received applications for ship-to-ship activities, particularly involving oil and gas. The organisation is confident that with the 200 nautical miles (nm) declaration, it can enforce laws according to the Forest Enactment 1968 repealed in 1981. Activities in the waters encompass ship-to-ship transfers (STS), floating wharves, single buoy mooring, and private jetties, involving various cargoes, such as oil, gas, sand, minerals, fossils, and even unknown cargo. LPPS is prepared to handle unknown cargo, having improved enactments and charges in the waters to ensure effective monitoring. LPPS has established a marine unit for monitoring purposes and is committed to focusing on the Blue Economy in maritime waters. The authority emphasises the importance of empowering maritime trade through the enforcement of enactments, compliance with regulations, efficient management as a One-Stop Centre, issuance of permits, and promotion of port activities and facilities within a 200 nm radius. This comprehensive approach aims to drive economic growth and ensure responsible and sustainable maritime practices in Sabah. INTERACTIVE SESSION 1 Blue Economy: Current and Future Potential
sabahmajujaya@sabah.gov.my 21 Despite his challenging duties as Chairman of the Board of Directors, Sabah Ports Authority, Datuk Mohd. Jasmin Julpin is actually a simple and friendly person. A native of Semporna, he holds a Master of Business Administration (MBA) from Oklahoma City University, USA and a Bachelor's Degree in Business Administration from Mara Institute of Technology (now known as Universiti Teknologi MARA (UiTM)). He is actually a person who really likes to help and share the knowledge he has. He has taught as a visiting/part-time lecturer at several prestigious higher education centres, such as Universiti Malaya (UM) and Universiti Teknologi MARA (UiTM). On top of his outstanding contribution of more than 35 years of experience in his role as a Civil Servant, he has received the Sabah State Medal of Honor, Anugerah Panglima Gemilang Darjah Kinabalu (PGDK) in 2021. His high and unrelenting commitment to excellence and focus on results in order to bring and improve the Sabah Ports Authority to a higher level has led him to be awarded as the recipient of the 2023 BrandLaureate Entrepreneur Award for Best Entrepreneurial Leadership in the Leadership Port Management category. His outstanding commitment to excellence also made a significant impact in the industry. As a distinguished member of Chartered Institute of Logistics and Transport (CILT), he received accreditation as a 'Conferment of Chartered Fellowship (FCILT)' on 18th November 2023. He adheres to the principle of wanting to serve the universal humanity. INTERACTIVE SESSION 1 Blue Economy: Current and Future Potential
Dr. Robin Bush emphasised on the intersection of the Blue Economy and social inclusion will yield significant economic benefits, as businesses experience enhanced profitability through inclusivity. Embracing socially inclusive groups provides access to a broader labour pool, fostering economic growth. In alignment with this, the 12th Malaysian Plan (12MP) places a strong emphasis on Environmental, Social, and Governance (ESG) principles. ESG, integral to various international agreements, underscores the importance of compliance and social inclusion in the Blue Economy. According to Dr. Robin, an illustrative international case is The Asia Foundation (TAF) Indonesia's collaboration with the Indonesia Ocean Justice Initiative, exemplifying how social inclusion is integral to effective Blue Economy development. TAF's support for the blue carbon ecosystem emphasises the vast potential of coastal ecosystems, such as mangroves and seagrass, in global carbon markets. Despite being the fifthlargest mangrove forest globally, the size of blue carbon land assets in Sabah is comparatively smaller, emphasising the untapped potential of ocean assets. DR. ROBIN BUSH Country Representative The Asia Foundation (Malaysia) sabahmajujaya@sabah.gov.my 22 TAF Indonesia identifies seven functions provided by the blue carbon ecosystem, including disasterrisk reduction, climate change mitigation, and socio-economic improvement for coastal communities. Social inclusion is deemed crucial for maximising the benefits of the blue carbon ecosystem, given the various threats it faces from human activities like overfishing, oil palm cultivation, environmental pollution, and tourism-related development. In Sabah, the Tagal System and the concept of Free, Prior, and Informed Consent (FPIC) play pivotal roles in safeguarding the blue carbon ecosystem. Indigenous communities are consulted and give their consent, a practice increasingly vital for international carbon market transactions. Australia and the Pacific, through initiatives by the Department of Foreign Affairs and Trade (DFAT), such as the Pacific Pathway Project, contribute to the promotion of social inclusion in Blue Economy development. Turning focus to Sabah's Blue Economy, opportunities for social inclusion abound, particularly among the youth, who constitute 50% of the population. Existing eco-tourism initiatives in Sabah should be further emphasised, and the participation of women, constituting another 50%, can significantly contribute to the Gross Domestic Product (GDP), as evidenced by examples like Women in Aquaculture in Marudu Bay. Embracing and enhancing social inclusion across these dimensions is integral to realising the full potential of Sabah's Blue Economy. INTERACTIVE SESSION 1 Blue Economy: Current and Future Potential
sabahmajujaya@sabah.gov.my 23 Dr. Robin Bush is the Country Representative for The Asia Foundation in Malaysia. She is responsible for overseeing various programs that are organised to support Malaysia's economic development as a more developed and excellent middle-income country. She holds a Doctorate of Philosophy (Ph.D.) in Political Science from the University of Washington, a Master's Degree in International Affairs from Ohio University, and a Bachelor's Degree in Political Science from the University of South Carolina. She has more than twenty years of experience in governance and policy reform as well as academic expertise on the Southeast Asian region. Her academic specialisation is in designing programmes related to religion and development, evidence-based policy making, refugee issues, innovation, and growth. Previously, in 2019 to 2021, she is an Adjunct Professor at the Singapore Management University (SMU), where she is responsible for creating and teaching courses in the School of Social Sciences on topics as diverse as religion and policy, evidence-based policy making, and Southeast Asian history and politics. She was also previously a research fellow at the Asian Research Institute, National University of Singapore (NUS) from 2012 to 2014, where she was part of the team leading research on religion and development in Asia at that time. INTERACTIVE SESSION 1 Blue Economy: Current and Future Potential
INTERACTIVE SESSION 2 Potential and Advantages: Marine Ecosystems and the Production of Marine Resources Moderator TS. EGBERT ADOLF NAINTIN Centre Head Ocean Law and Policy (OLAP) Maritime Institute of Malaysia (MIMA) As an experienced Maritime Officer with a history of 17 years serving in government administration, Ts. Egbert Adolf Naintin is an expert in Ship Management, Maritime Law, Maritime Operations, International Shipping, and Maritime Education and Training. His professional background is further strengthened by the academic certificates he holds, namely a Bachelor of Engineering (Marine Technology) from Universiti Teknologi Malaysia (UTM) and a Master of Science (MSc) in Maritime Studies from Universiti Malaysia Terengganu (UMT). He is also professionally recognised as a Registered Trainer on the Maritime Labor Convention (MLC) 2006 by the International Training Center (ITC), International Labor Organization (ILO), Italy. He has expertise in designing "Fixed Pitch" type marine propellers, which are widely used on luxury yachts, work boats, and others and has worked as a marine propeller design engineer in Southampton, United Kingdom (UK) in 2017 to 2019.
During the informative session, Datuk Ir. Abdul Nasser Abdul Wahid introduced the Energy Commission of Sabah (ECoS), a statutory body under the Chief Minister Department, officially established on 10 January 2023. ECoS assumes the critical role of being the new regulator for the energy sector in Sabah, encompassing electricity and land-based gas. Notably, following a special sitting of the State Assembly on 3rd January 2024, ECoS is set to take over the regulation of electricity, including renewable energy, which was previously under the purview of the Energy Commision and the Sustainable Energy Development Authority (SEDA). In its regulatory capacity, ECoS governs the economic aspects of consumer tariffs for electricity and gas, sets technical standards for utilities and licensees, and ensures safety for consumers at large. DATUK IR. ABDUL NASSER ABDUL WAHID Chief Executive Officer Energy Commision of Sabah sabahmajujaya@sabah.gov.my 25 The Sabah Energy Roadmap and Masterplan 2040, unveiled on 19th September 2023, by the Chief Minister, serves as the guiding principle and reference point for Sabah's energy landscape. The vision is to achieve reliable, accessible, affordable, and sustainable energy for Sabah through three key objectives and 16 identified strategies. These strategies aim to strike the right balance in Sabah's energy sector, focusing on energy security, equal accessibility and affordability, and environmental sustainability. Key strategies include identifying new energy sources and technologies, optimising energy resources for socio-economic growth, and enhancing the energy sector's contribution to environmental sustainability. According to Datuk Ir. Abdul Nasser, milestones outlined for Sabah's journey towards carbon neutrality by 2050 include achieving a 50% share of renewable energy by capacity and 30% by energy generated. The plan also introduces the Sabah Energy Efficiency Action Plan (SEEAP) and the implementation of a Greenhouse Gas (GHG)/carbon inventory and action plan, recognising the significant contribution of mangroves to carbon sequestration. Sabah is acknowledged for its abundant renewable energy resources, particularly in solar, bioenergy, biomass, hydro, and the potential for wind energy exceeding 1000 MW. However, wind energy feasibility studies are still pending. The presentation emphasises a planned renewable energy capacity of 650 MW on land by 2030, with the need for further exploration of the potential of Ocean Thermal Energy Conversion (OTEC). Looking ahead to 2050, the ECoS envisions the possibility of achieving 90% renewable energy in the generation mix, gradually transitioning from fossil fuel dependence to more sustainable options. The discussion also delves into the potential of harnessing renewable energy from the ocean through Blue Economy initiatives, including offshore wind, tidal/wave power, floating solar, and OTEC. Challenges, such as interconnectivity costs and installation expenses are discussed, underscoring the importance of innovative solutions for a sustainable energy future in Sabah. Potential and Advantages: Marine Ecosystems and the Production of Marine Resources INTERACTIVE SESSION 2
sabahmajujaya@sabah.gov.my 26 Datuk Ir. Abdul Nasser Abdul Wahid started his career as an Operations Engineer at the Sabah Electricity Board's (LLS) Power Station in 1990 and went on to hold important positions in LLS and Sabah Electricity Sdn. Bhd. (SESB), such as General Managers and Senior General Managers in various parts of the company. In 2019, he was appointed as the Chief Executive Officer (CEO) of Sabah Electricity Sdn Bhd (the sole energy utility company of Sabah and WP Labuan that provides services to over 650,000 customers). While at SESB, as the Chief Executive Officer, he drafted the 2030 Sustainability Transformation Plan and achieved several successes, namely leading the company to achieve a more stable financial status with the first achievement of positive current assets as well as improving the company's operational performance through reducing the supply disruption index and improving the quality of customer service through various initiatives including introducing the MySESB application system. In addition, he also played an important role in the implementation of the sustainable and renewable energy agenda in the Sabah energy industry landscape through the implementation of the Incentive Tariff Scheme, Large Scale Solar, and BioEnergy. In addition, he also played a leading role in obtaining Federal Government grant funds to implement the development of critical Electricity Supply Infrastructure in Sabah worth more than RM3.0 billion since 2017 until now. In January 2023, he also played a major role in Sabah's success in taking over the regulatory power of onshore gas supply and will now continue that effort for the acquisition of the regulatory power of Electricity Supply and Renewable Energy in January 2024. Potential and Advantages: Marine Ecosystems and the Production of Marine Resources INTERACTIVE SESSION 2
Prof. Dato’ Ir. A. Bakar Jaafar opened his speech by introducing Ocean Thermal Energy Conversion (OTEC). OTEC is a method designed to harness the sun's heat stored in the surface layers of water bodies, particularly in tropical and subtropical regions, and convert it into electrical energy or its equivalent. The OTEC system operates by utilising a turbine linked to and powered by a working fluid, typically Ammonia, to generate electricity. According to Prof. Dato’ Ir. A. Bakar, the most favourable locations for OTEC installations are tropical and subtropical waters due to their warmer surface temperatures. OTEC has been recognised as a significant source of renewable energy, not only for electricity generation but also to produce hydrogen. Green hydrogen production is closely tied to the economics of OTEC. Approximately 80% of the cost of hydrogen production through water electrolysis is attributed to electricity costs. Given the competitiveness of electricity generated by OTEC, it presents a costeffective solution for green hydrogen production. The transport sector stands out as a promising consumer of green hydrogen, with potential benefits due to the sector's substantial energy consumption. PROF. DATO’ IR. DR. A. BAKAR JAAFAR Founding Director and Research Fellow UTM Ocean Thermal Energy Centre (UTM OTEC) Universiti Teknologi Malaysia (UTM) sabahmajujaya@sabah.gov.my 27 The University Teknologi Malaysia (UTM) has taken a pioneering step in promoting OTEC-driven initiatives in Malaysia, establishing its research and development centre (UTM OTEC) since 3 January 2013. The commercial arm, UTM Holdings Sdn Bhd, has incorporated UTM OTEC Solutions Sdn Bhd, a special purpose vehicle (SPV) dedicated to OTEC projects in collaboration with various partners, including technology providers, engineering firms, and Engineering, Procurement, Construction, Installation, and Commissioning (EPCIC) consortia. Sabah, with its extensive deep-sea areas along the Tawau-Semporna coastal region, presents an opportunity for OTEC projects. These deep waters, reaching depths beyond 700m within 15km off the coast, offer an ideal environment for OTEC development. The state has the potential to generate renewable energy, with an estimated capacity of 20,000 MW or gross revenue of USD 21 billion annually from green hydrogen production. Despite the heavy initial capital investment, the deployment of OTEC technology is anticipated to recover costs within five years. The multiple revenue streams include green hydrogen production, utilisation of deep-sea water for various purposes, and the potential to fulfil the United Nations' (UN) 17 Sustainable Development Goals (SDGs). Potential and Advantages: Marine Ecosystems and the Production of Marine Resources INTERACTIVE SESSION 2
sabahmajujaya@sabah.gov.my 28 Prof. Dato' Ir. Dr. A. Bakar Jaafar is a Research Fellow and Founding Director of UTM Ocean Thermal Energy Centre, and Professor at Perdana Centre, Razak Faculty of Technology and Informatics since 2013. Currently, he is a leading proponent in Malaysia in promoting and developing renewable energy projects, including ocean thermal energy, as well as green hydrogen generation and production. He holds a Bachelor's Degree (Hons) in Mechanical Engineering from the University of Newcastle, New South Wales, Australia, 1973, a Master's Degree in Environmental Science from Miami University, Ohio, USA, 1976; and Doctor of Philosophy (Ph.D.) in (Marine) Geography from the University of Hawaii at Mānoa, 1984. He was awarded an Honorary Doctor of Science Degree by Universiti Malaysia Terengganu (UMT) in 2018, and by the University of Newcastle, New South Wales, Australia in 2022. During 1975-76, he was a Senior Engineer at the US Environmental Protection Agency, Office of Research and Development, Industrial Environmental Research Laboratory, Cincinnati, Ohio, during which time he successfully completed a Research Training Report that related to the conversion of solar energy into hydrogen, which is a partial fulfillment requirement for the Environmental Science Master's programme, Miami University, Oxford, Ohio, USA. He has served the Malaysian Government by holding various positions since 1973. After his voluntary retirement from his position as Director General of the Malaysian Environment Department (DOE) (1990-1995), he continued to serve the Malaysian Government as an Elected Member of the UNCLOS Commission on Limits of the Continental Shelf (1997-2002) (2002- 2007) (2007-2012). Potential and Advantages: Marine Ecosystems and the Production of Marine Resources INTERACTIVE SESSION 2
Datuk Ts. Dr. Ramzah explained that the Blue Economy in Sabah strategically encompasses two key areas, which are the blue growth point in northern Sabah and the wealth point on the East Coast. The northern region, covering districts like Kota Belud, Kota Marudu, Kudat, and Pulau Banggi, holds abundant mineral resources, fisheries, tourism potential, transportation avenues, and agricultural opportunities, offering a fertile ground for economic advancement. Plans for a port in Kudat anticipate a significant boost in economic activities. Simultaneously, the East Coast of Sabah is celebrated for its natural beauty both on land and at sea. Recognising the importance of downstream industries, Sabah aims to generate income for the local population and contribute to the overall prosperity of the state. This entails inclusive involvement of the community in economic development, providing job opportunities, fostering awareness about environmental conservation, and facilitating skill enhancement. DATUK TS. DR. RAMZAH DAMBUL Chief Executive Officer Institute for Development Studies, Sabah (IDS) sabahmajujaya@sabah.gov.my 29 According to Datuk Ts. Dr. Ramzah, the collaborative engagement of the local population in Sabah's economic progress is essential for mutual benefits, ensuring sustained economic prosperity. However, the Blue Economy faces a critical challenge in balancing economic development with environmental sustainability. Threats, such as overfishing, pollution, habitat destruction, and climate change pose risks to marine ecosystems. Addressing these challenges demands international cooperation, effective regulations, and innovative technologies to safeguard the health of oceans and coastal areas. Prioritising sustainable practices and responsible resource management is crucial for overcoming these hurdles and establishing a truly sustainable Blue Economy in Sabah. This approach not only preserves the marine environment but also contributes to the long-term economic viability of the region. Potential and Advantages: Marine Ecosystems and the Production of Marine Resources INTERACTIVE SESSION 2
sabahmajujaya@sabah.gov.my 30 Datuk Ts. Dr. Ramzah Dambul has been the Chief Executive Officer at the Institute for Development Studies (Sabah) (IDS) since 1 March 2022. He was the former Deputy Vice-Chancellor (Research and Innovation) of Universiti Malaysia Sabah (UMS) from 1 April 2019 until 28 February 2022. He holds a Bachelor of Science Degree (University of Malaya) in the field of Physical Geography; Master of Arts (National University of Malaysia) in the field of Geography of Thought; and Doctor of Philosophy (Ph.D.) (University of East Anglia) in Atmospheric Science. Having expertise in the field of Climatology, he has been assigned to the Ministry of Science, Innovation and Technology Malaysia (MoSTI), and the Ministry of Energy, Science, Technology, Environment, and Climate Change (MESTECC) by holding the position of Deputy Secretary General of the ministry. Potential and Advantages: Marine Ecosystems and the Production of Marine Resources INTERACTIVE SESSION 2
Assoc. Prof. Dr. Firdausi Suffian underscores that on a global scale, the momentum behind the blue economic growth is propelled by various factors, including the significant income derived from oceans, accounting for 3%-5% of the world's Gross Domestic Products (GDP). Additionally, fisheries play a crucial role in ensuring the livelihoods of 10%-12% of the global population, and oceanbased jobs are expected to increase by 120%. Industries, such as tourism, maritime activities, and deep-sea mining contribute to the overall development of the Blue Economy. Environmental issues like marine protection, the Paris Agreement, Net-Zero, and Sustainable Development Goals (SDG) have heightened awareness regarding the importance of sustainable blue economic practices. ASSOC. PROF. DR. FIRDAUSI SUFFIAN Associate Professor Faculty of Administrative Science and Policy Studies Universiti Teknologi Mara (UiTM), Sabah Campus sabahmajujaya@sabah.gov.my Within Malaysia, the country ranks third in Southeast Asia for the economic value added to the sea, totaling USD 61 billion and contributing at least 23% to the GDP. The diverse activities encompassed by the Blue Economy, including fishing, aquaculture, tourism, marine biotechnology, renewable energy, and carbon reduction, make it a multifaceted contributor to the nation's economic wellbeing. Sabah, with its abundant natural resources, particularly vast marine areas, stands as an economic powerhouse. Supported by data from the Department of Statistics Malaysia (DOSM), the Blue Economy in Sabah holds the potential to significantly contribute to economic growth. Its inclusion in strategic policies and frameworks such as the 12th Malaysia Plan (12MP), Sabah Maju Jaya Development Plan 1.0 (2021 - 2025), and the State Budget 2024 underscores its importance. Sabah's status as one of the top five destinations for investment further emphasises its economic potential. However, according to Assoc. Prof. Dr. Firdausi, the wealth of marine resources necessitates a profound responsibility for optimal management. To harness the existing framework effectively, the Blue Economy in Sabah is suggested to focus on emphasising fisheries, exploring seaweed extraction for cosmetic production, utilising financing through blue bonds, and introducing blue certification (blue tag) to add value and increase government revenue. The strategic direction for the Blue Economy in Sabah involves the implementation of bottom-up connected and top-down integrated policies, substantial investments in research and development (R&D) with collaboration from universities and fostering collaboration between the Federal and State Governments to ensure sustainable and harmonious economic development. 31 Potential and Advantages: Marine Ecosystems and the Production of Marine Resources INTERACTIVE SESSION 2
sabahmajujaya@sabah.gov.my 32 Assoc. Prof. Dr. Firdausi Suffian is a Senior Lecturer at the Faculty of Administrative Science and Policy Studies, Universiti Teknologi MARA (UiTM), Sabah Campus. He obtained a Doctorate of Philosophy (Ph.D.) from the University of Bristol, United Kingdom. He holds a Master's Degree in Public Policy, specialising in policy analysis, from the Australian National University (ANU) and the Crawford School of Public Policy and holds a Bachelor's Degree in Administrative Science (First Class Honours) from UiTM, Malaysia. His interest in the field of political economy research has led him to publish his work in various journals and his articles also often appear in various local and international news portals. Outside of academia, he has also served as a consultant to the United Nations Children's Fund (UNICEF) and the Konrad-Adenauer-Stiftung (KAS). He has delivered several keynote speeches on political economy in the context of development and has been a panel member for various high-impact economic forums and conventions in the country and abroad. Potential and Advantages: Marine Ecosystems and the Production of Marine Resources INTERACTIVE SESSION 2
INTERACTIVE SESSION 3 Policy Strengthening: Igniting the Growth of the Blue Economy Moderator DR. GERALD JETONY Secretary Sabah Biodiversity Centre Originally from Putatan, Sabah, Dr. Gerald Jetony received his early education at SK Tansau and SMK Putatan before continuing his schooling at upper secondary level and Matriculation at SMK Menggatal. He then continued his studies with a Bachelor of Science degree in Geology at Universiti Kebangsaan Malaysia (UKM), a Master of Science degree in Land Administration and Development at Universiti Teknologi Malaysia (UTM) and a Doctor of Philosophy (PhD) degree in Ecological Processes at Universiti Malaysia Sabah (UMS). He has expertise in policy formulation and natural resource management, particularly in the field related to 'community-based conservation'. He also has over 30 years of experience in public service during which he was actively involved in the field of biodiversity conservation through participation as a member of various committees and steering committees established by government organisations and non-government organisations at home and abroad.
Dr. Maklarin Lakim highlighted that the insights shared during the keynote session underscore the pivotal role of Sabah Parks in the tangible implementation of Blue Economy principles. This involves a concentrated emphasis on resource conservation, robust infrastructure development, and the strategic allocation of socio-economic opportunities within local communities. Within the context of Tun Sakaran Parks (TTS) 1, the challenge of implementing a capacity policy is acknowledged, encompassing considerations of physical, ecological, facility, and social capacities. Notably, iconic protected sites like Kinabalu Park and Sipadan Island, managed by TTS, rigorously adhere to capacity policies, aligning with sustainable conservation practices guided by the Parks Enactment 1984 . DR. MAKLARIN LAKIM Director Sabah Parks sabahmajujaya@sabah.gov.my INTERACTIVE SESSION 3 Policy Strengthening: Igniting the Growth of the Blue Economy 34 Sabah's marine area, encompassing the Coral Triangle Initiative (CTI) 2 region renowned as the 'Amazon of the Sea,' boasts exceptional coral reef biodiversity. With 400 islands, 198 of which are real islands, and 38% located within the TTS area, the Sabah State Government's decision in 1974 to designate islands under Taman Tunku Abdul Rahman as Marine Parks marks a significant conservation milestone. The Blue Economy concept in Sabah Marine Park involves meticulous zoning to address biological diversity, social and physical concerns, port development prospects, and potential ocean collisions. Notably, 75% of Sabah is designated as a Marine Protected Area, highlighting the commitment to conservation. The Green Zone, comprising 38 points, is strictly conserved, while the Red Zone permits deep-sea fishing activities. The strategic conservation efforts aim to translate the rich biological diversity into financial benefits for coastal communities. According to Dr. Maklarin, Sabah's marine area hosts seven iconic species, with the Green Turtle and Whale Shark being noteworthy examples. The conservation endeavours, including the release of 20 million baby turtles from marine parks and the active involvement of Sabah Parks in the conservation and management of Marine Parks, underscore the commitment to preserving these vital species. Dr. Maklarin emphasises the role of biological diversity in fostering opportunities for study and research, driving innovation and development within Sabah's fishing industry. Furthermore, Sabah stands as one of the top three scuba diving destinations globally, with Sipadan Island recognised as a premier site. The collaboration between Sabah Marine Park and Sabah Maju Jaya Secretariat in activities such as young ranger initiatives and coral reef planting and conservation enhances the overall commitment to sustainable practices, further solidifying Sabah's position as a leader in marine conservation and Blue Economy implementation.
sabahmajujaya@sabah.gov.my 35 Dr. Maklarin Lakim was born in Semporna and is a graduate of Universiti Kebangsaan Malaysia (UKM), Selangor. He started his career in 1991 as a Research Assistant at the Danum Valley Conservation Area (DVCA), Sabah Foundation. He joined Sabah Parks in June 1992 as Park Manager based in Sandakan. Subsequently, he was appointed as a Research Officer based in Kinabalu Park in 1994. As a researcher, he continued and obtained a Master's Degree in Biodiversity Management from the National University of Malaysia in 1998, and received a Doctorate of Philosophy (Ph.D.) in Primate Ecology from Universiti Malaysia Sabah (UMS) in 2008. He is currently the Director of Sabah Parks since January 2020. He has attended international seminars, such as World Parks Congress, Sydney 2014, World Conservation Congress, Honolulu 2016, Asian Conservation Forum, Islamabad 2019, Asian Park Congress, Sabah 2022, World Tourism Conference (WTC), Sabah 2022 and UNEP-Convention on Biological Diversity (CBD) COP-15, Montreal 2022. INTERACTIVE SESSION 3 Policy Strengthening: Igniting the Growth of the Blue Economy
Mr. Vitalis Moduying highlighted that the coastal zone serves as the meeting point between aquatic and terrestrial areas, encompassing shorelines, estuaries, mangrove swamps, seagrass, and peat swamp forests. In Sabah, the coastal zone covers approximately 2,200 km, excluding tidal lagoons and 400 islands. This area experiences high population density and is a focal point for socioeconomic activities, such as tourism, agriculture, aquaculture, fisheries, industry, navigation, and settlement. The habitats within the coastal zone, including mangroves, seagrass, and coral reefs, play a crucial role in addressing climate change issues, carbon storage, flood buffering, and providing breeding grounds for marine life. The dynamic nature of the coastal zone, influenced by external factors like wave changes, tidal fluctuations, sea level variations, wind, geology, climate change, vegetation, river sedimentation, and development activities, necessitates careful planning and monitoring. MR. VITALIS MODUYING Director Department of Environmental Protection (JPAS) sabahmajujaya@sabah.gov.my 36 According to Mr. Vitalis, the Shoreline Management Plan (SMP), implemented since 2007 and set for review in 2024, stands as a management tool for the coastal zone. Planning and monitoring coastal development and activities are essential to ensure sustainable and harmonious growth, prevent conflicts, and protect critical ecosystems like coral reefs and mangrove forests. The setback mechanism, requiring a 60-metre setback from the coastal zone, serves as a crucial control to prevent economic losses due to coastal erosion. However, adjustments may be needed in areas with active morphological changes. Land development is integral to sustainable coastal land use, aiming to reduce pressure on coastal resources, control erosion and degradation, adapt to climate change, and mitigate environmental pollution. The State Environmental Policy of Sabah, issued in 2017, serves as a strategic framework for sustainable development. With 83 strategies and 195 action plans, this policy guides environmental administration and management in Sabah through an integrated approach involving stakeholders and prioritising key areas. Various departments, including the State Department of Environment and the Federal Department of Environment, play a vital role in environmental management within their respective jurisdictions. INTERACTIVE SESSION 3 Policy Strengthening: Igniting the Growth of the Blue Economy
sabahmajujaya@sabah.gov.my INTERACTIVE SESSION 3: Policy Strengthening: Igniting the Growth of the Blue Economy 37 With over 25 years of experience in public service in the state of Sabah, Mr. Vitalis Moduying has extensive expertise in environmental management. In his role as Director of the Sabah Environmental Protection Department, he expects the integration of environmental considerations into every phase of project planning and implementation. His aspiration is to promote sustainable development throughout the state, ensuring a harmonious balance between development initiatives and environmental preservation.
Mr. Azhar Kassim highlights the food production chain within the fisheries subsector, originating from captured marine resources or aquaculture, and its journey through various stages to reach consumers. This chain encompasses marine capture fisheries, river and lake capture fisheries, marine aquaculture, and freshwater aquaculture. The primary function of the Sabah Fisheries Department is to manage fisheries resources effectively, ensuring a sustainable fishing industry and the exploration of enduring resources. This management is based on existing legislation empowering the Sabah Fisheries Department, along with relevant policies and regulations. In 2021, recorded landings of fish from marine capture sources totalled 230,171 metric tons, while landings from aquaculture sources amounted to 319,813 metric tons, with the majority derived from tropical seaweed. This involved 30,893 marine fishermen and 8,798 aquaculture fish farmers contributing to Sabah's fish production, with an estimated 15,000 individuals involved in the entire supply chain, including drivers, factory workers, and others. MR. AZHAR KASSIM Director Department of Fisheries Sabah sabahmajujaya@sabah.gov.my 38 According to Mr. Azhar, Sabah stands as the only state in Malaysia with a high trade balance, recording over RM495 million in 2022 alone. The agricultural sector, including the fisheries sector, contributed 15.61% to the state's Gross Domestic Product (GDP) in 2021. Fish landings from coastal and deep-sea capture fisheries exhibited growth in 2022 compared to 2021, with 99.37% coming from coastal fisheries and only 0.63% from deep-sea fisheries. Therefore, the Blue Economy opportunities should be fully utilised to explore fisheries in the deep-sea waters of Sabah. The Sabah Fisheries Department operates under both state and federal legislation to manage fisheries resources. State-level legislation includes the Sabah Inland Fisheries and Aquaculture Enactment 2003, Pearl Oyster Shell Fishery Ordinance Cap. 95, Seed Pearl Ordinance Cap. 134 Vol. IV, and the repealed Fisheries Ordinance 1963. At the federal level, the Fisheries Act 1985 (Act 317), International Trade in Endangered Species, and the Exclusive Economic Zone Act 1984 are applied. On 26 November 2021, the Sabah Fisheries Department obtained the authority to manage deep-sea fishing under Section 3(4) of the Fisheries Act 1985 (Act 317), a significant achievement within the framework of the Malaysia Agreement 1963 (MA63). INTERACTIVE SESSION 3 Policy Strengthening: Igniting the Growth of the Blue Economy