← borneo.biz / Business Guides

Sabah vs Sarawak: Where to Base Your Business 2026

KK vs Kuching: costs, talent, ports, incentives — the honest Borneo base comparison.

6 min readUpdated Sep 2026
TL;DR: Tourism + logistics → Sabah (KK port, airport, islands). Energy + manufacturing → Sarawak (Bintulu LNG, SCORE corridors, cheaper industrial land).
Sabah (KK)Sarawak (Kuching)
Office rentHigher15–20% lower
Talent poolTourism/servicesEngineering/energy
ConnectivityKL/Singapore directVia KL mostly
IncentivesTourism grantsSCORE industrial

Cost of operating

Kuching office and housing run visibly cheaper; KK compensates with foot traffic and flight links. Staff salaries are comparable — retention is the real differentiator, and both states lose talent to KL/Singapore.

Verdict

Consumer-facing → KK. Industrial/B2B → Kuching/Bintulu. Many groups register in one and keep a sales desk in the other — SSM covers both states under one company.

Do business in Borneo?

List your company on Borneo.biz — DoFollow backlink, WhatsApp leads, Google visibility. Free for the first 50.

Add Your Listing — $29/mo →
Related: Sabah Sarawak CompanySsm Dp10 Work Permit Sabah SarawakNusantara Investor Guide