Sabah Tea
A Malaysian tea company and plantation brand based in Sabah, known for producing tea from its farm in Ranau.
Last updated August 24, 2026
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Overview
Sabah Tea is a tea company and plantation brand based in the Malaysian state of Sabah. The business is associated with a large tea farm in Kampung Nalapak in the Ranau District and is described as the main tea company in Sabah and the largest tea producer in Borneo. Its operations combine agricultural production with the manufacture, sale, and distribution of tea products for Malaysian and international markets. The company dates its origins to 1973. A major step in its development came in 1976, when the Sabah state government gazetted approximately 6,200 acres of land in Kampung Nalapak for the Rural Development Co-operation, known in Malay as Koperasi Pembangunan Desa or KPD. The land was subsequently developed as a tea farm. On 26 April 1978, the farm was incorporated into Sabah Tea, with KPD providing a subsidy to support management and operation. The plantation was formally opened on 19 February 1984 by Malaysian Prime Minister Mahathir Mohamad. This opening marked the public establishment of the Ranau tea operation as a significant agricultural project in Sabah. The company later faced the financial and competitive pressures associated with developing a major plantation business. In 1987, management of Sabah Tea was united with the British sugar and food-ingredients company Tate & Lyle and the Commonwealth Development Corporation. The arrangement was intended to reduce the financial burden on the Sabah government and help the tea operation compete more effectively with other plantations. Sabah Tea was originally connected with Sabah Tea Sdn Bhd and Desa Tea Sdn Bhd. Desa Tea, based in Ipoh, Perak, was involved in the manufacture, export, and sale of products in domestic and international markets. Since 1997, Yee Lee Corporation Bhd has held the total shareholding of Sabah Tea and Desa Tea Sdn Bhd, bringing the brand into the Yee Lee group. The change in ownership supported wider distribution and increased the company's export reach, both within Malaysia and abroad. The brand's identity is closely tied to Sabah's highland agricultural environment and to the Ranau plantation rather than to a broad portfolio of unrelated consumer products. Available reference material identifies tea as the core product category but does not provide a complete catalogue of current formats, blends, pack sizes, or named flagship products. Similarly, detailed current information about production volumes, revenue, export destinations, corporate leadership, and the company's present retail strategy is not established in the supplied sources. Sabah Tea is therefore best characterized as a regional plantation-based tea company with domestic importance and international distribution through its corporate group.
History
Sabah Tea's origins are traced to 1973, when the business began developing as a tea enterprise in the Malaysian state of Sabah. Its later history is closely linked to a government-backed agricultural development project in the Ranau District. In 1976, the Sabah state government gazetted about 6,200 acres in Kampung Nalapak for the Rural Development Co-operation, or Koperasi Pembangunan Desa (KPD). The land was converted into a tea farm, creating the agricultural foundation for the brand. On 26 April 1978, the farm was incorporated into Sabah Tea. KPD provided a subsidy to help the company manage and operate the plantation. The project represented an effort to establish tea production as a significant agricultural activity in Sabah and to create a commercially viable plantation in the region. The farm was formally opened on 19 February 1984 by Malaysian Prime Minister Mahathir Mohamad. During the late 1980s, Sabah Tea was reorganized to address the financial demands of running the plantation and to strengthen its ability to compete with other tea producers. In 1987, management of the company was united with Tate & Lyle, a British company, and the Commonwealth Development Corporation. The arrangement was intended to reduce the financial burden borne by the Sabah government and provide the business with a more competitive operating structure. The company was associated not only with Sabah Tea Sdn Bhd but also with Desa Tea Sdn Bhd, an Ipoh-based business involved in manufacturing, exporting, and selling products in Malaysia and overseas. In 1997, Yee Lee Corporation Bhd took the total shareholding of Sabah Tea and Desa Tea. Under Yee Lee ownership, Sabah Tea gained access to a larger corporate distribution network, and its products were distributed domestically and internationally. The Ranau farm remains the central reference point for the brand's identity. Sabah Tea is described as the largest tea producer in Borneo and as the main tea company in Sabah. Its story therefore combines state-supported agricultural development, plantation management, corporate restructuring, and integration into a Malaysian consumer-products group. The supplied reference material does not establish a detailed chronology of individual product launches, advertising campaigns, current executives, financial performance, or specific export countries. Those areas require additional primary or corporate sources before they can be documented confidently.
- 1997
Yee Lee Corporation took full shareholding
[1]Yee Lee Corporation Bhd took the total shareholding of Sabah Tea and Desa Tea Sdn Bhd.
- 1987
Management partnership introduced
[1]Sabah Tea's management was united with Tate & Lyle and the Commonwealth Development Corporation to reduce government financial pressure and improve competitiveness.
- 1984
Ranau farm officially opened
[1]The farm was officially opened on 19 February by Malaysian Prime Minister Mahathir Mohamad.
- 1978
Farm incorporated into Sabah Tea
[1]The tea farm was incorporated into Sabah Tea on 26 April, with subsidy support from KPD for its management and operation.
- 1976
Land gazetted for the Ranau tea farm
[1]The Sabah government gazetted approximately 6,200 acres in Kampung Nalapak, Ranau District, for the Rural Development Co-operation.
- 1973
Sabah Tea established
[1]Sabah Tea began operating as a tea company in Sabah, Malaysia.
Products and positioning
A Sabah-origin, plantation-based tea brand associated with the Ranau tea farm and positioned around Malaysian agricultural provenance, regional production, and distribution through the Yee Lee group.
Tea
Sabah Tea
The core Sabah Tea offering is tea produced through the company's plantation and processing operations in Sabah. The brand is associated with the Ranau tea farm in Kampung Nalapak and with distribution in Malaysia and international markets. The supplied sources identify the general tea category but do not specify the full range of current blends, grades, packaging formats, or product variants.
Tea products
Desa Tea products
Desa Tea Sdn Bhd is historically connected with Sabah Tea and is described as an Ipoh-based company involved in the manufacture, export, and sale of products in domestic and international markets. The available reference does not identify individual products or establish which Desa Tea items are currently marketed under the Sabah Tea name.
Brand decisions
1997
Yee Lee Corporation took full shareholdingM&ABackground
Sabah Tea and Desa Tea were operating as related tea businesses with domestic and international manufacturing, sales, and export activities.
Action taken
Yee Lee Corporation Bhd took the total shareholding of Sabah Tea and Desa Tea Sdn Bhd.
Aftermath
The ownership change expanded the companies' access to Yee Lee's distribution structure and was associated with increased domestic and international exports.
1987
Management united with Tate & Lyle and the Commonwealth Development CorporationStrategyBackground
The plantation business created a financial burden for the Sabah government and needed to compete more effectively with other tea plantations.
Action taken
Sabah Tea's management was united with Tate & Lyle and the Commonwealth Development Corporation.
Aftermath
The arrangement was intended to reduce the government's financial burden and enable Sabah Tea to participate more competitively in the plantation industry.
Recent events
- 1997
Yee Lee Corporation acquired full shareholding in Sabah Tea and Desa Tea[1]
M&A
Yee Lee Corporation Bhd took the total shareholding of Sabah Tea and Desa Tea Sdn Bhd, supporting broader domestic and international distribution.
- 1987
Sabah Tea management united with Tate & Lyle and the Commonwealth Development Corporation[1]
Other
Sabah Tea entered a management arrangement involving Tate & Lyle and the Commonwealth Development Corporation, intended to ease the financial burden on the Sabah government and improve competitiveness.
- 1984
Sabah Tea plantation formally opened[1]
Other
The Sabah Tea farm in Ranau was officially opened on 19 February 1984 by Malaysian Prime Minister Mahathir Mohamad.
- 1978
Sabah Tea farm incorporated into the company[1]
Other
The tea farm developed on state-gazetted land in Kampung Nalapak was incorporated into Sabah Tea on 26 April 1978, with support from the Rural Development Co-operation.
Sources1 sources
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