Sabah, the eastern most state in Malaysia, is located at the center of the ASEAN community. Sabah's population is concentrated in major towns along the coastal belt, with less densely populated villages towards the interior.

As the eastern-most state of Malaysia, Sabah forms the Pacific gateway to the country. It occupies the northern part of Borneo, between five to seven degrees latitude north of the Equator, and covers an area of 73,620 square kilometers. Sabah enjoys a pleasant tropical climate, with a temperature range of between 24-34 degrees celsius and rainfall of 1800-3000mm, depending on locality. The Northeast Monsoon lasts from November to March, the Southwest Monsoon from June to August.

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Topographically, Sabah is a mountainous country of dense tropical forests, with alluvial and swampy coastal plains intersected by many rivers and valleys. These form contrasting terrains and ecosystems, with a corresponding variety of flora and fauna.

Of the State's many ecological wonders, none is more celebrated than the Mount Kinabalu. The mountain, at 4101 meters, is the highest in Southeast Asia, as well as being a botanical paradise of incomparable biodiversity and complexity.

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The state's capital, Kota Kinabalu, has an international airport and deep water port facilities. The city is served by five international airlines (Malaysia Airlines, Singapore Airlines, Dragon Air, Royal Brunei Airlines and Philippines Airlines) with direct links to Bangkok, Brunei, Hong Kong, Kuala Lumpur, Manila, Singapore, Taipei and Tokyo. Domestic flights by Malaysia Airlines and Sabah Air provide passenger and cargo transport to the interior and to off-shore destinations.

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Sabah's 2.7 million population has a rich cultural diversity of 32 ethnic communities, each with its own unique heritage. It's people are now a blend of different races, cultures and religions. The major ethnic groupings are Kadazandusun, Bajau, Murut, Brunei, and Chinese sub-groups - all still maintaining their customs and traditions, thus creating a unique mixture of culture and heritage.

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Sabah is rich in natural resources, but ironically its economic growth in recent years has been low compared to the national growth. The economy is export oriented, the main products being agricultural commodities and unprocessed timber. A review of the State's current industrial structure reveals a dependence on pre-dominantly low value-added natural resources for its economic growth. This will not sustain a long-term rise in living standards. The State Government realizes that it is vital for Sabah to maintain competitiveness by transforming its current assets into higher value-added, consumer-oriented goods.

Industrialization has an important role to play in developing a more diversified and value-added economy. Both State and Federal Governments understand this as being the major path towards sustainable economic development in Sabah.

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Sabah is fortunate in having the resource advantages to support an industrialization program:

• ample land and population,
• oil and gas reserves
• extensive and well-managed forestry
• established agricultural activities
• aquacultural and marine resources,
• young & trainable workforce

The Kota Kinabalu Industrial Park was conceived by the State Government to spearhead the long-term development plan to industrialize Sabah. KKIP will attract both local and foreign investments into the State's economy, contributing significantly to its transformation from an agricultural to an industrialized economy.

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