Economy


Kota Kinabalu: Economy

Besides being the capital city, Kota Kinabalu is also the main industrial and commercial centre for Sabah. The economy is dominated by the primary sector of industry. Historically, the secondary sector dominated the economy, but due to rapid urbanisation and economic development, this sector of economy is slowly diminishing. More recently, a move towards a more tertiary based industry has become more apparent, especially with regards to the boom in the tourism industry. Many state-level, national-level and international commercial banks, as well as some insurance companies have their headquarters or branches here.

The overseas Chinese population also contributes to the development of KK since their immigration in the late 19th century. Their original role involved 'koo-li' (slavery work) and today many Chinese work as shopowners.

A number of industrial and manufacturing companies also have plants here especially in the industrial districts of Likas, Kolombong, and Inanam. The ongoing construction of the 8,320-acre (33.7 km2) Kota Kinabalu Industrial Park (KKIP) in Sepanggar is intended to boost the city's industrial and commercial activity making it a major growth centre in East Malaysia, as well for the BIMP-EAGA (Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area) region. Kota Kinabalu also hosts numerous national, regional, and international conferences or trade fairs every year including the biennial Sabah International Expo, the Asia Pacific eTourism Conference by the United Nations Conference on Trade and Development (UNCTAD), the ASEAN Australian Engineering Congress, and many others. These events are normally held at the Sutera Harbour resort.

Local authority and city definition
The city is administered by Dewan Bandaraya Kota Kinabalu (Kota Kinabalu City Hall). The current mayor of Kota Kinabalu is Datuk Illiyas Ibrahim. He became the second mayor of the city after taking over the post from Datuk Abdul Ghani Rashid in 2006. The city obtained city status on February 2, 2000, and prior to this it was administered by Majlis Perbandaran Kota Kinabalu (Kota Kinabalu Municipal Council).

The city is defined within the borders of what is the district, formerly the municipality, of Kota Kinabalu. With an area of 351 square kilometres, it is the smallest but the most populous district in Sabah. It encompasses Tanjung Aru and Kepayan in the south, up to Telipok and Sepanggar in the north. The urban expanse of the city however extends into the district of Penampang on the south of the city border, which includes the towns of Donggongon and Putatan. The combined area of Kota Kinabalu (district) and the built up areas in Penampang can also be described as Kota Kinabalu (urban area). The district of Penampang has an area of 466 square kilometres, and is administered by Majlis Daerah Penampang (Penampang District Council).

On one end of the scale, Kota Kinabalu may sometimes only refer to, especially by local inhabitants, the city centre or central business district, area near the sea facing Pulau Gaya. On the other end of the scale, it may also refer to the metropolitan area which includes urban Kota Kinabalu, and the surrounding towns of Papar and Kinarut, in the south, and Tuaran and Tamparuli, in the north, being within its zone of influence.