Sabah stands at a crossroads. Long reliant on traditional industries such as agriculture and tourism, the state faces growing economic pressures, including an unemployment rate of 7.7%, more than double the national average of 3.1%[1]. With limited industrial diversification and widening income inequality, the need for economic transformation has never been more urgent.
Yet, amidst these challenges, a new wave of innovation is emerging. Social enterprises are becoming a powerful force for change, bridging economic gaps, empowering marginalised communities, and fostering inclusive growth.
Globally, social enterprises generate a staggering US$2 trillion in revenue and create nearly 200 million jobs, according to the World Economic Forum[2].
In Malaysia, the Ministry of Entrepreneur Development and Cooperatives (MEDAC) reported that as of 2020, there were 414 registered social enterprises, generating a RM100 million turnover and creating approximately 3,500 job opportunities[3].
In Sabah, social enterprises are reshaping the economic landscape by providing employment, skills development, and sustainable opportunities, especially for indigenous and marginalised communities, women, and youth.
At the heart of this shift is the Sabah Creative Economy and Innovation Centre (SCENIC).
Driving Innovation Through Strategic Programs
Established in 2019 by the Sabah Cabinet and now housed under the Ministry of Science, Technology, and Innovation (KSTI), SCENIC has been instrumental in empowering local talent through entrepreneurship, technology, and creativity.
Over the past four years, SCENIC has led this transformation by spearheading 344 programs, supporting over 200 impact-driven entrepreneurs (social enterprises and tech startups), impacting over 15,000 participants, and facilitating RM16 million in investments for local entrepreneurs and startups.
These efforts have been crucial in bridging the gap between global advancements and local talent, fostering an ecosystem where startups, innovators, and industry players can collaborate.
One of SCENIC’s flagship initiatives, the Innovation-Driven Entrepreneurship (IDE) program, has hosted 149 programs, nurturing startups and connecting them with funding opportunities.
Among those empowered by SCENIC’s support is Siti Subailah, who co-founded Borneo Fertilyst in 2022. Growing up in a rural farming family, she witnessed firsthand the environmental and economic challenges her community faced.
Determined to make a difference, she launched a company that transforms agricultural waste into sustainable farming products while creating new income opportunities for local communities.
Reflecting on her journey, Siti shares:
Planting my first long bean at 12 brought me joy, but becoming a social entrepreneur and seeing communities thrive is a thousand times more fulfilling. Thanks to SCENIC for believing in the potential of rural youth to create change. With their support, Borneo Fertilyst turned vision into action – scaling innovation, building networks, and making sustainability a reality for farmers. – Siti Subailah binti Suod, Co-Founder, Borneo Fertilyst
According to the Ministry of Entrepreneur and Cooperatives Development (KUSKOP), Sabah has the second-largest social enterprise ecosystem in Malaysia, making it a conducive environment for local businesses to thrive.
Spotlighting Sabah’s Creative Economy
SCENIC has played a pivotal role in strengthening Sabah’s creative industry, particularly in animation, digital content creation, and social enterprise development.
Collaborations with industry leaders like Inspidea and OLM Asia have created job opportunities for Sabah’s animation graduates, connecting local talent with global opportunities.
A major milestone came in 2023 when 100% of SCENIC Creative Academy graduates secured employment in top local animation studios.
Among them was Nur Sabrina Azra Sitorus, a business graduate who had been unemployed for over 10 months before discovering SCENIC’s Animation Industrial Bridging Program.
With no prior experience, but a passion for learning, she received hands-on training in Toon Boom software, animation fundamentals, and industry projects, ultimately building a strong portfolio.
With SCENIC’s support, she secured a role at Inspidea Sdn Bhd, where real-world exposure refined her skills and prepared her for the industry. Now thriving in her role, Nur Sabrina shares:
SCENIC’s program gave me the skills, experience, and industry connections I needed to break into animation. From hands-on training to mentorship and networking, it shaped my career and personal growth. – Nur Sabrina Azra Sitorus, Junior Animator, Inspidea Sdn Bhd
Bridging Tech Startups to Global Markets
SCENIC has been a driving force behind Sabah’s innovation ecosystem, bridging local startups with global opportunities. Through mentorship, funding, and strategic partnerships, it has helped emerging tech entrepreneurs scale their solutions beyond Malaysia’s borders.
One standout success story is SynxSoft, a halal tech company revolutionising compliance processes for businesses worldwide.
Founded by Mazrie Mahat, SynxSoft’s flagship product, CoreHalal, simplifies halal certification by automating compliance with industry standards such as HAS, HACCP, and GMP. With SCENIC’s support, the company has achieved major milestones.
SynxSoft won MyHackathon 2020, SCENIC’s first collaboration with Cradle, gaining national recognition. By 2022, the company expanded into Japan through the GMP MRANTI Market Access Program, collaborating with local halal certification bodies.
In 2023, it partnered with Maybank Islamic to streamline halal certification for Malaysian MSMEs, making the process more accessible. Most recently, in 2024, SynxSoft represented Malaysia at Web Summit in Portugal, connecting with global tech leaders and investors.
Mazrie, who has successfully navigated the tech startup ecosystem with remarkable achievements, has this to say:
SCENIC has been instrumental in SynxSoft’s growth, providing us with essential resources, mentorship, and access to funding opportunities. Through their extensive network, we have connected with industry experts, investors, and strategic partners who have helped refine our business strategy and scale our product. Their guidance has been invaluable in strengthening SynxSoft’s position as a competitive player in the industry. – Mazrie Mahat, Founder and CEO of Synxsoft
Why Sabah Needs SCENIC
Sabah’s potential is vast, but unlocking it takes more than ambition – it requires innovation, collaboration, and bold new strategies for growth. SCENIC is at the forefront, driving structural change and championing digital adoption.
Recognised with the Merit Award for the Most Impactful Public Agency in Driving Digital Adoption at the Top Tech Innovation Award 2022 by Malaysiakini, endorsed by MOSTI, SCENIC is shaping a future where local talent and entrepreneurs can thrive.
With a strong focus on upskilling, ecosystem resilience, and policy advocacy, SCENIC is creating opportunities where they matter most. From social entrepreneurship to the creative economy, its initiatives empower Sabahans not just to adapt, but to lead in an evolving economic landscape.
Fully aware of the socio-economic standing of the state, Viviantie Sarjuni, CEO of SCENIC shares:
While Sabah’s GDP has been promising, the persistent issue of being ranked as the poorest state in Malaysia highlights the need for alternative economic models. We are actively exploring approaches such as social entrepreneurship and the creative economy to build sustainable growth from the ground up. – Viviantie Sarjuni, CEO of SCENIC
Looking ahead, SCENIC has an exciting lineup of initiatives, including two international symposiums – the Sabah Creative Economy Summit in April and the Rural Social Enterprise World Gathering 2025 in October, along with incubation and accelerator programmes, grant opportunities and a social procurement initiative.
However, true transformation doesn’t happen in isolation. The future of Sabah’s innovation landscape depends on collective effort.
Viviantie encourages those within the ecosystem to participate in the development of the state and local talent. To date, SCENIC is actively engaged with 11 global collaborators
Companies, industry leaders, and individuals can all play a role – whether by mentoring, investing, sharing expertise, or championing local talent. Together, we can turn ideas into impact, empower local talents, drive innovation, and create sustainable economic opportunities for Sabah. – Viviantie Sarjuni, CEO of SCENIC
Find out more about SCENIC’s ongoing programs, ways to collaborate, and upcoming events at: https://scenic.my/
