A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering of the Asian Institute of Technology, Bangkok, Thailand.

Thesis (M.Eng.) - Asian Institute of Technology, 1975

The research studies the industrial development in Sabah and West Malaysia with the aim to analyze the problems and prospects for industrial development in Sabah as compared to West Malaysia. The general economic background and progresses of Malaysia and Sabah as well as the conditions for industrial development are first discussed in brief. Comparative analysis of the characteristics of many factoring sector in Sabah and West Malaysia are next been made with respect to various aspects of the sector such as the growth of gross value-added, gross output, employment and exports of manufactured goods; the pattern of geographical distribution, gross output, gross value-added and fixed capital; and the structure of legal status and employment. The sector in Sabah is found to be relatively less developed as compared to that in West Malaysia. The problems and prospects for the sector are examined. It is found that although there are some problems facing the sector in Sabah, as compared to West Malaysia, there is still great potential for industrial development in the State particularly for mineral resource-based and agro-based industries. Similar comparative analyses of the characteristics of forest-based industries in Sabah and West Malaysia has also been made. It shows that forest based industries in Sabah is also relatively less developed as compared to those in West Malaysia but the problems facing the forest-based industries are less severe. An attempt is next made to develop a characteristic model using various characteristics parameters to simulate the performance of the sector and forest-based industries in both Sabah and West Malaysia to see how much both sector would contribute to the country's economy. It is found that the sector in West Malaysia is likely to be able to fulfill the various targets set in the Second Malaysia Plan while efforts must be made to accelerate the sector in Sabah.