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B28 SABAH DEVELOPMENT CORRIDOR
(SDC)
Introduction
The Sabah Development Corridor (SDC) was launched on 29 January 2008 and is aimed at accelerating the
growth of Sabahs economy. Sabah with an area of 74,000 sq km, will see the SDC implemented through
three sub-regions (i.e. Western, Central and Eastern) of Sabah. The Western sub-region is Sabahs
industrial zone and major tourism portal while the Central sub-region comprises the states agriculture and
food production area. The Eastern sub-region is rich in natural resources and home to Sabahs oil palm
plantations.
Objectives
The three key guiding principles for the SDC are:
Capturing higher value economic activities in the high-margin sectors such as tourism and
logistics.
Promoting balanced economic growth which encompasses natural resources, cultural heritage
and biodiversity.
Ensuring sustainable growth via environmental conservation to ensure the environment is
conserved and protected for future generations.
Key economic focus areas
There are 5 strategic development areas under the SDC initiative:
Kinabalu Gold Coast Enclave;
Brunei Bay Development Zone;
Interior Food Valley;
Sandakan-Kinabatangan-Beluran Bio-Triangle; and
Agro-marine Belt.
The priority industries within the following key sectors identified for development are:
Sector Industries
Agriculture Fisheries and aquaculture, livestock, crops
Manufacturing Oil & gas, oil palm, resourced-based industries
Logistics Tourism, logistics and transportation
Sabah Economic Development and Investment Authority (SEDIA)
SEDIA has been commissioned with the task of implementing the SDC initiative. Its role is to promote and
accelerate the development of SDC into an investment destination for investors. SEDIAs functions include
recommending, coordinating and funds disbursement in the implementation of projects of potential growth
and opportunities.

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Incentives
The existing incentives in Malaysia are available for various industries and approved activities under the
Promotion of Investments Act 1986 and the Income Tax Act 1967. The incentives given are in the form of:
Pioneer status;
Investment Tax Allowance on qualifying capital expenditure;
Deductions for research and development; and
Reinvestment allowance.
There are various sales tax and import duty exemptions.
Specific incentive packages customised to suit the special needs and requirements of SDC investors are
available on a case-to-case basis.