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29 Kota Kinabalu

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“Build cities for your women and children, and pens for your flocks, but do what you have promised.”

Numbers 32:24 (NIV)

“Probably KK is located near equator, which receives the most sunlight, and our air is high in humidity but not polluted. Such conditions create fire or flaming cloud during sunset, which is what Tanjung Aru Beach most famous for. The sky, sea and cloud are illuminated by vibrant shades of red, yellow, pink, purple and orange light.”

Murphy (2021)

Kota Kinabalu City

Source: SEDIA 2007

1.0 Geographical Overview

Location:

Kota Kinabalu, the capital of Sabah, boasts a city area spanning 351 km2 and a total metropolitan land area of 816 km2—slightly surpassing the expanse of New York City.

Population:

As of 2020, the city’s population stands at 550,000, with projections estimating a rise to 2.5 million by 2050.

Proximity:

Situated on the western coast, facing the South China Sea, Kota Kinabalu serves as a pivotal point in Borneo.

Distance:

Distance to major cities in Borneo Distance to Asia Pacific cities

CityDistance (km)CityDistance (km)
Samarinda730Shanghai2,861
Banjarmasin1,046Tokyo4,093
Balikpapan811Taipei2,192
Pontianak1,002Hong Kong1,824
Tarakan340Jakarta1,696
Kuching804Singapore1,452
Bandar Sri Begawan176Sydney5,759

Maritime Landscape:

Borneo Island is enveloped by the South China Sea to the north and west, while its eastern reaches connect to the Pacific Ocean, and the southern side opens up to the Indian Ocean.

Tropical Climate:

Positioned at 5.9° north of the equator, Kota Kinabalu experiences a warm, humid tropical climate with an annual rainfall of 2,788 mm and an average temperature of 27°C. The city is adorned with abundant greenery, featuring palms, golden trumpet flowers, pink poui blossoms, and vibrant bougainvillea in parks and gardens.

Distinctive Features:

Kota Kinabalu boasts several renowned attributes, including Tanjung Aru Beach, famous for hosting one of the world’s most beautiful sunsets. Additionally, the city is home to Mount Kinabalu, the highest peak in Southeast Asia, and the Rafflesia Arnoldi, the world’s largest flower.

Tranquillity:

Positioned below the typhoon belt of East Asia, North Borneo is often referred to as the “Land Below the Wind,” spared from the impact of typhoons. The island is characterized by a lack of frequent earthquakes or volcanic eruptions.

Unique Characteristics:

Sunshine: Beyond its natural beauty, Kota Kinabalu serves as a prime tourist destination and the gateway to Borneo Island. With a sparse population, the region enjoys vast expanses of sunshine and abundant rainwater.

Central:  Its central location within the Asia Pacific region further enhances its significance.

2.0 Historical Timeline

PeriodRule/Event
15-18 centuryBrunei rule
19th CenturyBritish North Borneo
1946Designated as the Capital of North Borneo
1963Joining the Federation of Malaysia
Previous Names: Api Api, Jesselton

Unique Attributes:

Former British Crown Colony marked by robust town planning, government administration, and a common law legal system.

3.0 Economic Landscape

Kota Kinabalu, the capital and economic hub of Sabah, engages in diverse economic activities:

  1. Tourism:
    • Major revenue generator with 4.3 million visitors in 2019.
    • Gateway for tourists exploring Sabah’s pristine beaches, mountains, national parks, and diverse cultural offerings.
    • Appreciated for unique Bornean flora and fauna.
  1. Industry:
    • Thriving light industries in food, agriculture, transportation, and manufacturing.
    • Kota Kinabalu Industrial Park spans 3,679 hectares, dedicated to industrial use.
  1. Transportation:
    • Kota Kinabalu International Airport connects the city to major Asian cities with 9.4 million passengers in 2019.
  1. Seaports:
    • Sepangar Bay Container Ports and Kota Kinabalu Port facilitate maritime trade.
  1. Oil & Gas:
    • Offshore oil and gas exploration.
    • Sabah Oil and Gas Terminal, covering 250 acres, with a capacity of 300,000 boe per day of crude oil and 1.25bcf per day of gas.
  1. Agriculture:
    • Diverse agricultural activities include tropical fruits, rice, and livestock.
  1. Commercial Sector:
    • Active real estate, trading, shopping malls, financial, and property development sectors.
  1. Healthcare:
    • Over ten public and private hospitals cater to the city’s healthcare needs.

Unique Attributes:

Abundant opportunities for the development of untapped natural resources contribute to Kota Kinabalu’s economic potential.

4.0 Linguistic Landscape

In Kota Kinabalu city, Malay takes the lead as the most prevalent language, followed by Kadazan, Chinese and English. This linguistic diversity reflects the cultural richness and harmony within the city.

Unique Feature:

The widespread use of the Malay language serves as a cornerstone for effective communication across various domains, including government, business, and within the local community. This linguistic commonality fosters cohesion and understanding in the diverse and vibrant cultural tapestry of Kota Kinabalu.

5.0 Investment Opportunities

5.1 New Migration:

  • Anticipated increase in population from 0.5 million to 2.5 million in 30 years.
  • New business activities through foreign investment will create job opportunities.
  • Expansion of the city area to a radius of 30 km, covering northern districts, western districts, southern regions, and eastern islands.

5.2 Airport:

  • Requirement for a new airport in Kimanis to accommodate 2.5 million new migrants and 13 million visitors per year by 2050.
  • Estimated project cost between US$0.8–2.0 billion.

5.3 Education:

  • Existing international schools include Kinabalu International School and Jesselton International School.
  • Anticipated need for 10 new international schools to cater to an estimated 12,500 foreign students.

5.4 Tourism:

  • Tourism growth from 4.3 million visitors in 2019 to an expected 13 million by 2050.
  • Demand for 120–200 new hotels and 400–800 tourist buses.
  • Healthcare tourism attracting Asian tourists for medical check-ups due to competitive costs and well-trained doctors.
  • Attraction for tourists from Australia, Europe, USA, India, and the Middle East.

5.5 Infrastructure:

  • Major investments in highway development for interstate and international routes.
  • Introduction of Mass Transit Rail (MTR) between Kota Kinabalu, Tuaran, and Kimanis.
  • Establishment of new water treatment plants for a population of 2.5 million.

5.6 Financial:

  • Potential for Kota Kinabalu to become a new regional financial hub in the Asia Pacific.
  • Financial services include offshore banking, investment banking, asset management, insurance, and more.
  • Attraction factors: Rule of law, transparent judiciary, financial incentives, flexible capital controls, and high-quality human resources.

5.7 Property Development:

  • Residential planning for an additional 2 million dwellings.
  • Commercial development of theme-based shopping malls for the influx of 13 million Asian tourists.
  • Healthcare-focused development, including retirement villages, serviced apartments, and nursing homes.

5.8 Special Economic Zones (SEZ):

  • Food downstream manufacturing hub in Kota Kinabalu.
  • Agriculture downstream industry in Kota Belud, focusing on rice, cattle, and horses.
  • Oil and gas downstream industries supported by the Sabah oil and gas terminal in Kimanis.
  • Tourism-focused SEZ, with Tunku Abdul Rahman Park and Gaya Island offering opportunities for development.

5.8 Private Equity Firms in Malaysia

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