By Dr. Rizal Zamani Idris

Director, UMS Corporate Communication Centre & Senior Lecturer, International Relations Programme, Faculty of Social Sciences and Humanities

 

 

Sabah has long been regarded as an important part of Malaysia's geographical and economic landscape. Yet, its strategic importance extends far beyond its position within the Malaysian Federation.

 

Located at the crossroads of Southeast Asia, bordering Indonesia and the Philippines and situated along important maritime routes, Sabah possesses considerable potential to become a more influential participant in regional economic and political cooperation.

 

In an increasingly interconnected world, where international relations are no longer conducted exclusively through national governments, Sabah needs to reconsider how it engages with the international community. One important approach is paradiplomacy, which refers to the involvement of subnational governments, such as states, provinces and regional authorities, in international activities to advance their economic, social, cultural and development interests.

 

For Sabah, paradiplomacy offers an opportunity to look beyond conventional administrative boundaries and explore new avenues of international cooperation. This does not mean competing with Putrajaya or challenging the Federal Government's authority over foreign affairs.

 

Rather, it means recognising that Sabah can play a more active and constructive role in advancing Malaysia's international interests through its own geographical advantages, economic priorities and regional connections.

 

 

Beyond Traditional Diplomacy

 

Traditionally, international relations have been understood as the domain of sovereign states. National governments negotiate treaties, establish diplomatic relations and represent their countries in international organisations. However, globalisation has gradually changed this traditional understanding.

 

Today, state governments, provincial authorities and local administrations are increasingly involved in international networks, economic partnerships, investment

promotion, environmental cooperation and cultural exchanges. These activities demonstrate that international engagement is no longer limited to national capitals.

 

For Sabah, this development presents an important opportunity. Its geographical proximity to Brunei, Indonesia and the Philippines provides a natural foundation for cross-border cooperation.

 

Issues such as trade, tourism, maritime security, environmental protection, energy development and connectivity cannot be addressed effectively through domestic policies alone. They require cooperation that extends beyond national borders.

 

This is where paradiplomacy becomes relevant. It allows Sabah to establish meaningful international connections, promote its economic interests and participate in regional initiatives while remaining within Malaysia's constitutional and foreign policy framework.

 

 

Sabah Is Already Making Its Mark in Paradiplomacy

 

It is important to acknowledge at this juncture that Sabah has already made meaningful progress in international engagement under the present State Government.

 

Its initiatives, particularly in strengthening relations with China, promoting trade and investment, expanding tourism cooperation and participating in regional platforms such as BIMP-EAGA, demonstrate Sabah's growing practice of paradiplomacy.

 

The establishment of the Sabah Trade and Tourism Office in Singapore further reflects its commitment to connecting local economic interests with international markets.

 

These achievements provide a strong foundation for Sabah to pursue a more systematic and strategic approach to paradiplomacy, ensuring that international partnerships translate into tangible benefits for the state and its people.

 

 

Sabah's Strategic Geographical Advantage

 

Geography has always influenced the conduct of international relations. In Sabah's case, its location in the northern part of Borneo provides a strategic advantage that deserves greater attention.

 

Sabah is connected to several important economic and geopolitical areas in Southeast Asia. Its proximity to Kalimantan, Brunei, Mindanao and Palawan places it within a region with considerable economic potential and strategic significance.

 

The relocation of Indonesia's capital to Nusantara in East Kalimantan further reinforces the importance of Borneo as an emerging centre of economic and infrastructural development.

 

This development creates opportunities for Sabah to explore cooperation in transportation, logistics, tourism, education, investment and regional connectivity.

 

Furthermore, Sabah's position along important maritime routes provides opportunities to strengthen cooperation in maritime governance, environmental protection and regional security.

 

However, geographical advantage alone does not guarantee economic or strategic influence. It must be supported by effective institutions, appropriate policies, infrastructure development and the ability to establish meaningful international partnerships.

 

Sabah must therefore move beyond simply recognising its geographical importance and begin translating that advantage into tangible economic and diplomatic opportunities.

 

 

BIMP-EAGA: An Opportunity That Must Be Maximised

 

One of the most practical platforms for Sabah's paradiplomatic engagement is the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA).

 

Established in 1994, BIMP-EAGA was designed to promote economic development and regional cooperation among less-developed and geographically remote areas in the four participating countries. Its areas of cooperation include connectivity, agriculture, tourism, environmental protection and socio-economic development.

 

Sabah is naturally positioned to benefit from this regional arrangement. Nevertheless, participation in regional cooperation should not be measured simply by the number of meetings attended or agreements established. More importantly, it should be measured by the economic opportunities, investments, employment and development benefits generated for the people of Sabah.

 

The adoption of BIMP-EAGA Vision 2035 in May 2026 provides a renewed opportunity. The new regional roadmap emphasises food security, sustainable tourism, regional production networks and the development of a future-ready workforce.

 

Sabah should take a more proactive approach in identifying projects and initiatives that directly support these priorities. For example, the state could strengthen cross-border tourism cooperation, develop agricultural and fisheries value chains, promote

halal industry partnerships and improve regional transportation as well as logistics connectivity.

 

The challenge is to ensure that Sabah does not remain merely a geographical participant in BIMP-EAGA but rather becomes one of its more active economic and institutional contributors.

 

 

Economic Diplomacy: Turning International Connections into Opportunities

 

Another important dimension of paradiplomacy is economic diplomacy.

 

Sabah's economic future depends partly on its ability to attract investment, expand export markets, develop new industries and establish stronger international economic connections.

 

According to the Department of Statistics Malaysia, Sabah's total trade reached RM105.5 billion in 2025, maintaining its position above RM100 billion for the fourth consecutive year. China also remained among Sabah's important international trading partners.

 

These figures demonstrate that Sabah is already connected to the international economy. However, the next challenge is to strengthen the state's capacity to translate these connections into more diversified economic opportunities.

 

Sabah should adopt a more strategic approach towards international economic engagement, particularly in sectors such as renewable energy, the blue economy, tourism, agriculture, fisheries, education and digital technology.

 

For instance, international partnerships in renewable energy could support Sabah's energy transition, while cooperation with neighbouring countries could strengthen the development of sustainable tourism and cross-border economic activities.

 

Similarly, universities and research institutions in Sabah could become important actors in international cooperation through academic exchanges, joint research programmes and institutional partnerships.

 

Such initiatives demonstrate that paradiplomacy should not be understood exclusively as an activity conducted by politicians or government officials. It can also involve universities, business communities, research institutions and other non-state actors.

 

 

The Importance of Institutional Capacity and Federal-State Coordination

 

Despite its potentialities, paradiplomacy requires careful institutional management.

 

Malaysia's Federal Constitution places external affairs, including treaties, diplomatic representation and relaations with other countries, under the Federal List. Therefore, Sabah's international engagement must operate within the constitutional framework and remain consistent with Malaysia's national foreign policy.

 

Nevertheless, this constitutional arrangement should not prevent Sabah from developing a more proactive international engagement strategy.

 

What is needed is stronger coordination between the Federal and Sabah governments, particularly in areas involving trade promotion, investment facilitation, tourism, education, environmental cooperation and regional development.

 

Sabah could consider strengthening its institutional capacity through a more coordinated mechanism for international engagement. This could include identifying priority countries and regions, developing sector-specific cooperation strategies, coordinating international missions and monitoring the outcomes of existing partnerships.

 

More importantly, international engagement must be guided by clear economic and development objectives rather than being driven primarily by ceremonial visits, memoranda of understanding or short-term political considerations.

 

Every international partnership should be evaluated based on its contribution to Sabah's economic growth, institutional development and the well-being of its people.

 

 

Looking Beyond Putrajaya, Without Leaving Malaysia Behind

 

Ultimately, the idea of Sabah looking beyond Putrajaya should not be interpreted as an attempt to weaken the Federal Government's role in international relations. Instead, it should be understood as a call for a more collaborative and multi-level approach to international engagement.

 

In contemporary international relations, the ability to establish partnerships, attract investment and participate in regional cooperation has become increasingly important. National governments remain central to foreign policy, but subnational governments can contribute valuable knowledge, local connections and development priorities.

 

For Sabah, this is particularly important given its geographical position, economic potential and historical connections with neighbouring communities in Southeast Asia.

 

The state should therefore move towards a more strategic form of paradiplomacy, one that is carefully coordinated with national foreign policy but sufficiently responsive to Sabah's own development priorities.

 

Sabah does not need to become a sovereign actor to become internationally relevant. It needs the institutional capacity, strategic vision and political commitment to make its geographical and economic advantages count.

 

The future of Sabah's international engagement should not be determined solely by how effectively it connects with Putrajaya, but also by how successfully it connects with the wider region.

 

Perhaps it is time for Sabah to stop thinking of itself merely as a state located at the periphery of Malaysia and start recognising its potential as a strategic regional actor. Looking beyond Putrajaya is not about looking away from Malaysia. It is about bringing Sabah and Malaysia, closer to the opportunities of the wider world.