Sabah's Stagnation – Can Progress Happen Without Embracing Change?

 

In Part 7: The Unresolved Horizon (link-to-part-7), I examined the glaring disparities between foreclosure laws in Sabah and Peninsular Malaysia. While the Federal Court in the peninsula has begun curbing indefinite claims through cases like Thameez Nisha Hasseem v Maybank Allied Bank Berhad [2023] 4 MLRA 492, Sabah still clings to its outdated Limitation Ordinance. Item 114 exempts foreclosures entirely, leaving borrowers exposed to threats that can linger for 60 years. This is not a mere legal quirk—it is a symptom of a deeper malaise: Sabah’s persistent refusal to align with evolving national and global standards.

 

The consequences are visible everywhere. Despite being rich in oil, gas, palm oil, and timber, Sabah remains Malaysia’s second-poorest state. Poverty rates hover between 17.7% and 19.5%, compared to the national average of 5.6%. Infrastructure failures compound the problem:

 

Electricity supply remains unreliable.

 

Internet connectivity is patchy, with mobile broadband penetration at just 78.8%—the lowest in Malaysia.

 

Roads are underdeveloped, inflating logistics costs by 20–30% compared to the peninsula.

 

Rural communities, which make up half of Sabah’s population, suffer most. Extreme poverty rates that are quadruple the national figure. These are not abstract statistics—they are lived realities. Sabahans see their oil wealth siphoned away while development funds trickle back unevenly. Manufacturing contributes a meager 4.6% of Sabah’s GDP, compared to 20% nationally decades ago. The state remains trapped as a supplier of raw materials, unable to climb the value chain.

 

Frustration is mounting. On social media and in public forums, Sabahans lament being treated as “poor cousins” of Peninsular Malaysia. In 2025, basic needs—running water, streetlights, jobs—remain unmet. Power blackouts, water shortages, and absent teachers are no longer news; they are normalized hardships.

 

The crux is clear: progress demands adaptation. Yet Sabah’s institutions cling to outdated frameworks. The Limitation Ordinance’s foreclosure exemption is emblematic of a broader resistance to reform. Why should justice depend on geography when the peninsula has moved toward equity? This avoidance echoes in economic policy: weak fiscal ties with the federal government limit autonomy, poor transport stifles SMEs, and even digital initiatives like e-invoicing face calls for exemptions because “Sabah isn’t ready.”

 

Globally, regions that thrive do so by embracing change. Singapore and South Korea did not leapfrog by preserving the status quo—they reformed, invested in education, and fostered innovation. Sabah’s reluctance to evolve risks entrenching its backwardness.

 

Breaking the Cycle: What Sabah Must Do

Harmonize legal systems – Extend reforms like Thameez Nisha to Sabah, ensuring foreclosure laws protect borrowers equally across Malaysia.

 

Invest in tailored development – Expand broadband to national levels, electrify rural areas, and build roads to cut logistics costs.

 

End patronage politics – Enforce transparency, empower SMEs, and move beyond raw exports.

 

Retain talent – Invest in vocational training, tech hubs, and education to stop youth migration.

 

Adopt Sabah-centric solutions – Policies must reflect local realities, not copy-paste models from the peninsula.

 

This is not about blaming Sabahans. It is a call to action. The federation’s unity is tested when one region lags so far behind. If silence continues to shield outdated practices—as foreclosure laws currently do—Sabah risks deeper isolation in a world racing toward digital and equitable futures.

 

The question is stark: Will leaders confront these inequities, or allow them to fester?

 

As I explored in Part 8, these disparities could either spark reform or perpetuate division. Sabahans deserve better—a horizon not unresolved, but actively advancing.