Kota Kinabalu (Feb 8) - Sabah’s state government has initiated a review into reports that 81 accommodation establishments in Semporna, the state’s renowned diving destination on the East Coast, are owned by foreign individuals and companies.
State Tourism, Culture and Environment Minister Datuk Jafry Ariffin emphasized that while foreign investment is welcomed, it must benefit local communities and ensure Sabahans gain meaningful economic opportunities. “Foreign investment plays a key role in expanding global networks and market access, which are essential for tourism growth,” he said on Sunday (Feb 8). “However, such investments must strengthen local participation, create jobs for Sabahans, and contribute positively to the surrounding communities.”
The review follows concerns raised by Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali, who called for an investigation to protect the interests of local micro, small, and medium enterprises (MSMEs) and ensure Sabahans are not sidelined in the tourism sector.
Jafry noted that the state government established a Special Task Force on Semporna Tourism Industry Monitoring two months ago to address these issues. The task force comprises representatives from state agencies, local authorities, industry players, and community groups. Its goal is to tackle Semporna’s tourism challenges systematically rather than reactively, ensuring clear coordination of roles, jurisdiction, and enforcement.
He added that illegal business activities fall mainly under the jurisdiction of the state’s Local Government and Housing Ministry. Nevertheless, the tourism ministry will work closely with this ministry and other relevant authorities to maintain proper governance, ensure effective enforcement, and promote orderly tourism development.
“Our approach is evidence-based and solution-oriented,” Jafry said. “Tourism should not become an enclave economy where profits leave the state while local benefits remain minimal. Sabah must stay competitive globally while ensuring Sabahans are the primary beneficiaries in their own land.”
The state government will continue collaborating with the Federal Government, including the Domestic Trade and Cost of Living Ministry, to ensure sustainable tourism development and clear governance in Semporna.
This review is crucial for protecting local interests in Semporna, particularly for small business owners and workers in the tourism sector. By ensuring Sabahans benefit from tourism development, the initiative aims to create jobs, promote local entrepreneurship, and prevent economic leakage from foreign-owned enterprises.