Blue Economy Supporting World in Achieving SDG: Sabah International Blue Economy Conference (SIBEC) 2024

Keynote Speech delivered by Manon Bernier, Deputy Resident Representative of UNDP Malaysia, Singapore, and Brunei Darussalam

October 19, 2024

I first want to thank the Secretariat of Sabah Maju Jaya for inviting UNDP to speak at this significant event. It is an immense honor to stand before you today at the Sabah International Blue Economy Conference here in the beautiful city of Kota Kinabalu. We gather here, right in between the shimmering sea and the astonishing Mount Kinabalu to discuss a topic central to the future of sustainable development—the blue economy and its pivotal role in our global efforts to achieve the Sustainable Development Goals (SDGs). Though long present in our ecosystems, the concept of the blue economy has only recently begun to command the attention it deserves, and today, we are here to champion it as a transformative force for the future to achieve the Sustainable Development Goals (SDGs) by 2030.

Ladies and gentlemen,

Our oceans and coastal ecosystems are the livelihood of billions around the world, including here in Malaysia, a maritime nation. Globally, these ocean-based sectors contribute an estimated USD 1.5 trillion to the economy and support approximately 31 million jobs. But beyond their economic value, oceans perform a critical environmental role by absorbing around 30% of the carbon dioxide produced by human activity, making them the largest long-term sink for carbon on our planet.

The interconnected ecosystems of mangroves, coral reefs, and seagrasses—so abundantly present here in Sabah—are crucial for biodiversity. They protect us from the growing impacts of climate change, yet they are also under severe threat from the triple planetary crises of climate change, biodiversity loss, and pollution. Recognizing the indispensable value of these trinity of marine ecosystems, the 2030 Agenda for Sustainable Development enshrines SDG 14: Life Below Water, with the goal to sustainably manage and protect marine and coastal ecosystems for future generations.

The United Nations Development Programme (UNDP) has defined blue economy as “the sustainable use of ocean resources for economic growth, jobs and social and financial inclusion, with a focus on preservation and restoration of the health of ocean ecosystems and the services they provide”. This concept recognizes the connection between the natural capital in the ocean and the economic activities and benefits derived from the ocean economy. It acknowledges that if these ocean resources are depleted, they can threaten jobs and economic growth in marine-based sectors. Without sustainable management, the depletion of these vital resources risks not only economic instability but the collapse of ecosystems and environmental well-being that underpin our existence.

The blue economy encompasses a vast array of industries—traditional sectors like fisheries, tourism, and shipping, alongside emerging fields such as offshore renewable energy, marine biotechnology, and marine aquaculture. This expansive scope underlines the ocean’s profound role in both global economic development and environmental stewardship. To unlock its true potential, we must embrace a new economic paradigm—one that seeks prosperity not at the expense of natural ecosystems but through their preservation.

In the last 25 years, UNDP has partnered with governments worldwide to mobilize over USD 1 billion for ocean protection and restoration initiatives across 100 countries. Through our "Ocean Promise" and "Nature Pledge," we have committed to supporting 100 coastal nations, helping them leverage their blue economies through sustainable, low-emission, and climate-resilient practices.

Ladies and Gentlemen,

Malaysia, with its rich marine biodiversity, stands at the forefront of this global movement. Here in Sabah, a region that forms part of the Coral Triangle, we are custodians of crucial ecosystems—coral reefs, seagrass beds, and mangroves—that sustain both marine life and local communities. Malaysia’s coral reefs, covering approximately 3,600 square kilometers and home to over 550 species of coral, ranks third globally for seagrass diversity, with 16 recorded species, are among the most biologically diverse in the world.

Beyond ecological significance, Malaysia's marine wealth contributes significantly to our economy. A study by PEMSEA found that the marine-based economy contributes nearly 23% of Malaysia’s GDP, underscoring the power of the blue economy in driving sustainable development. This profound potential positions the blue economy as a key to achieving multiple SDGs—not just SDG 14, but also SDG 1 (No Poverty), SDG 2 (Zero Hunger), SDG 8 (Decent Work and Economic Growth), and SDG 13 (Climate Action). Through the sustainable management of marine resources, we can strike the delicate balance between economic growth, environmental conservation, and social well-being.

To fully harness this potential, Malaysia has made significant strides in marine conservation. The Marine Protected Areas (MPAs) Malaysia have established cover over 2.8 million hectares, safeguarding essential marine habitats and species. Among the largest MPA is here in Sabah, that is Tun Mustapha Park, spans nearly 900,000 hectares and protects a diverse array of species and ecosystems. Moreover, Malaysia’s National Policy on Biological Diversity 2022-2030, aligned with the Kunming-Montreal Global Biodiversity Framework, sets ambitious targets to conserve 10% of our coastal and marine areas by 2030.

However, while we celebrate these achievements, we must also recognize the challenges that lie ahead. Climate change continues to threaten marine ecosystems on a global scale. Rising ocean temperatures, sea level rise, ocean acidification, and extreme weather patterns are leading not only to the destruction of the marine ecosystems and species loss, but the displacement of coastal communities too. Malaysia is among the countries in the region that risks losing its coastline due to erosion and sea level rise. In addition to sea level rise of up to one meter by 2100, Malaysia will risk the loss of up to 7,000 square km of land and displacement of more than 50,000 people living by the coasts.

Locally, overfishing, destructive fishing practices, pollution in particular plastic wastes and unsustainable coastal development further endanger our marine biodiversity. The annual survey report by Reef Check Malaysia, showed that Malaysia’s coral reefs are on a declining trend from 48.3% live coral cover to only 45.8% in just one decade. The loss of coral reefs which also function as nursery grounds for fishes affects the livelihood of about 150,000 fishermen in Malaysia. The Department of Fisheries Malaysia data shown a 19% drop in capture fisheries in 2023 as compared to a productive year in 2016. Just this year a mass coral bleaching event occurred all over Malaysia, with the severity of bleaching reported reaching 80% in some areas. Landwards where mangroves occur protecting the coast from erosion, the area size of mangroves shrunk by about twice the size of Kuala Lumpur, in the last 6 years. We must learn, and not allowing the repeat of the tsunami aftermath that happened exactly 20 years ago. A coast with healthy coral reefs, seagrass and mangroves intact, can function as great natural buffer against strong waves, protecting the coastal communities from disasters.

The costs of inaction are staggering. UNDP estimates the annual socioeconomic costs due to ocean mismanagement are nearly USD 1 trillion. Yet, despite these challenges, investment in ocean restoration and protection remains inadequate. SDG 14—focused on life below water—remained the least financial investment of all the SDGs. This is a gap that urgently needs to be addressed if we are to achieve the 2030 Agenda for Sustainable Development.

This brings us to the core mission of our current efforts in the space of Blue Economy. UNDP Malaysia is committed to unlocking major investments to protect marine ecosystems and foster a thriving blue economy that aligns with the SDGs. Briefly, the programmes we are advancing in the coming years focus on three primary objectives:

First, we aim to create a supportive policy environment for effective marine conservation and a sustainable blue economy. We have in our pipeline to support Malaysia in the development of a robust and inclusive policy to recognize Other Effective area-based Conservation Measures (OECM) which allows opportunities to enhance livelihoods through sustainable practices and effective management of the natural resources. With a supportive policy environment, local communities, or even industry players that rely on blue economy will have greater role to play in addressing the threat of overfishing, marine pollution and unsustainable coastal development. By doing so, we will not only protect our oceans but also contribute to achieving SDG 1 (No Poverty) and SDG 8 (Decent Work and Economic Growth).

Second, we are working to mobilize financing for marine ecosystem restoration and conservation through innovative solutions and blue finance models. By identifying and developing bankable marine conservation projects, whether within or beyond the Marine Protected Areas, we can attract investments that support both ecosystem preservation and sustainable economic development. For instance, UNDP have worked with ASEAN and Government of Japan to mobilize over 2 million USD through the ASEAN Blue Innovation Challenge where 60 winning projects around South East Asia were given grants to pilot and scale up their innovative solutions in tackling marine pollution, overfishing, climate change impacts and restoration of degraded marine ecosystems through solutions such as precision aquaculture, circularity in fisheries and alternative plastic solutions. These efforts contribute directly to SDG 17 (Partnerships for the Goals) by fostering collaboration between the public and private sectors.

Third, we seek to uplift the livelihoods of coastal communities by fostering sustainable blue economy activities. Through technical assistance and capacity-building programs, we aim to equip local communities with the skills and resources they need to thrive within a sustainable framework. One of our on-going efforts is Sustainable Tourism programme where coastal communities including women’s group in the tourism sector were equipped with trainings and exposure to manage and expand their business with sustainable practices. Besides that, the programme also equips the communities with technology to better manage solid waste in a waste to wealth strategy, ensuring they can continue generate income while also protecting these assets that continuously provide functioning ecosystem services. This aligns with UNDP’s principle of Leaving No One Behind by promoting equitable access to sustainable economic opportunities.

The transformation we envision extends beyond Malaysia—it is a global imperative. And it begins here, today, at the Sabah International Blue Economy Forum. The theme of "Synergy, Innovation, and Blue Economy Conservation" resonates powerfully as we seek to embed sustainability into the core of our economic systems. This gives me hope that we can create a future where both people and the planet thrive through innovative measures. This is the promise of the blue economy: to support economic growth, ensure social equity, and preserve our environment for generations to come.

In conclusion, ladies and gentlemen, the blue economy is a powerful lever for achieving the SDGs. It offers a path to economic prosperity that does not come at the expense of our natural resources but rather strengthens them.

I would like to take this opportunity to congratulate the Sabah Government for the leadership in convening this important international conference. The participation of renowned international experts, government, industry, academia, and civil society demonstrates strong commitment and the need for multi-stakeholder platforms such as this to drive an inclusive blue economy agenda.

Together, let us partner to advance the blue economy as a critical component of the global sustainability agenda. Let us work hand in hand to protect our oceans, support our coastal communities, and drive the world forward on the path to achieving the Sustainable Development Goals by 2030.

Thank you.