The Sabah government has launched a multi-agency task force to address challenges faced by local tourism entrepreneurs in Semporna, aiming to ensure economic benefits reach local communities. The announcement was made on August 10, 2026, as part of efforts to reform the district’s tourism sector.
Task Force Targets Licensing and Regulatory Barriers
Sabah Tourism, Culture and Environment Minister Datuk Jafry Ariffin said the state’s policy is to promote tourism development that benefits local residents across all segments, including maritime transportation, accommodation, travel agencies and restaurants. He acknowledged licensing delays and bureaucratic complexities hinder local operators, particularly difficulties in obtaining commercial passenger boat licenses and tourism business licenses
required by federal and state agencies.
Many tourism businesses operate on lands under temporary occupancy licences (TOL), which current laws disallow from obtaining tourism operation licenses. Jafry stated that the Semporna District Council has been directed to review and realign the zoning plans for the waterfront area to reflect present development realities. Coordination continues among state ministries, local government, and federal bodies through roundtable discussions to resolve these systemic issues comprehensively.
Foreign Investor Presence and Joint Venture Proposal
The dominance of foreign-controlled businesses has limited local entrepreneurs’ share of the economic benefits in Semporna’s tourism industry. Semporna Member of Parliament Datuk Seri Mohd Shafie Apdal proposed regularising
foreign involvement through joint ventures between foreign investors and local operators to prevent monopolies while maintaining tourist inflow.
Mohd Shafie clarified that banning foreign investors outright could harm the sector and that a joint venture model would ensure local residents benefit beyond land rental income, which currently ranges from RM10,000 to RM20,000 monthly, while major profits and resort ownership remain with foreigners.
Visitor Statistics and Enforcement Measures
Sabah recorded 3.8 million visitor arrivals last year, generating RM8.74 billion in tourism receipts. Domestic tourists numbered 2.29 million, with Semporna alone receiving 560,077 visitors. In the first four months of 2026, Semporna recorded 157,673 arrivals, underscoring its
status as a key tourism destination.
To ensure lawful tourism operations, monitoring and enforcement have been intensified across Semporna’s waters. Operators must hold the necessary licenses and certification, including commercial boat licenses, boat skipper competency certifications, and licenses issued by the Ministry of Tourism, Arts and Culture Malaysia (MOTAC) or local authorities. Tourist manifests are required to track passenger movements to facilitate safety and enforcement, especially given Semporna’s sensitive maritime border environment.
Sustainable Development and Local Cooperation
Sabah Chief Minister Datuk Seri Hajiji Noor described Semporna as the main driver of Sabah’s blue economy. He emphasized that sustainable development and environmental protection are essential investments.
Hajiji warned against unsustainable operators prioritising short-term profits and called on local leaders to enforce marine conservation laws.
Highlighting a compliant example, a foreign dive master operating under the name Pe’an works in partnership with local entrepreneurs, employing seven local workers and adhering strictly to Malaysian regulations, including filing tourist manifests. Pe’an stressed that isolation from local communities and non-compliance with legal requirements could lead to regulatory crackdowns within five to six years, underscoring the need for cooperation between foreign and local operators.
Semporna Bumiputera Tourism Operators Association deputy chairman Suffian Ahmad Kenajaan called for streamlined governance to prevent abuses
and support local entrepreneurship.
