Laundromat Business in Sabah & Sarawak
Laundromat Business Setup in Sabah & Sarawak, Malaysia 2026
The grouping of Sabah and Sarawak as if they were in the same basket may only be based on the fact that they lie opposite Peninsular Malaysia across the South China Sea – but viewing the two states as one and the same place when setting up a laundromat business would prove to be a huge blunder. The tourism-based economy of Kota Kinabalu bears no resemblance to the university town of Kuching and much less the oil and gas industry of Miri. Every city in East Malaysia has its own pulse; hence, the set-up of a laundromat business in these cities should be done accordingly.
This guide gives a rundown on what truly makes East Malaysia unique — from the customer base in each major city to the logistical considerations of transporting commercial laundry equipment to Borneo.
Sabah and Sarawak Are Two Different Markets
However, Sabah and Sarawak are two different states with their own capitals, economic trends, and demographics. While Sabah is mainly dependent on tourism, manufacturing, and the digital industry, centered in Kota Kinabalu, Sarawak depends on energy, petrochemical industries, and logistics thanks to its SCORE (Sarawak Corridor of Renewable Energy), which includes such cities as Kuching, Miri, Sibu, and Bintulu.
Improved connectivity of Sabah, Sarawak, and Brunei due to the Pan Borneo Highway does not equate to the fact that one laundromat strategy can be used for both locations. You need to pick one state and city as your target rather than “East Malaysia.”
Key Cities in Sabah
| City | Population (approx.) | Character | Best For |
|---|---|---|---|
| Kota Kinabalu | ~750,000 (metro) | State capital, tourism, digital economy, growing manufacturing | Tourists, young professionals, students |
| Tawau | ~350,000 | Second-largest district, gateway to the east coast | Local residents, traders |
| Sandakan | Secondary urban centre | East coast hub, tourism and trade | Residents, small business owners |
Kota Kinabalu emerges as the best possible entry point for Sabah due to the presence of tourism and a youthful workforce with increasing numbers, the latter of whom usually don't have washing machines in their rented units.
Key Cities in Sarawak
| City | Population (approx.) | Character | Best For |
|---|---|---|---|
| Kuching | Sarawak's capital, most populous city | University hub (UNIMAS, Swinburne Sarawak), suburban expansion | Students, young renters, families |
| Miri | ~350,000 | Oil and gas hub, well-connected to Brunei | Shift workers, industrial employees |
| Sibu | Growing tourism | Riverside city, rising Airbnb activity | Residents, short-stay visitors |
| Bintulu | Industrial centre under SCORE | Energy and petrochemical growth | Industrial workers, contract staff |
The student demographic in Kuching generated by UNIMAS and Swinburne University of Technology Sarawak is of the type that is usually serviced well by self-service launderettes, just like students' neighbourhoods in Peninsular Malaysia.
Understanding Your Customer Base by City
Kota Kinabalu — Tourists & Young Professionals
Thanks to the constant influx of tourists as well as the rise of the pool of young professionals in digital and hospitality industries, the demand will be sourced not only from short-term tourists but also from tenants who live in rented flats without laundry.
Kuching — Students & Families
Due to the presence of two universities attracting students not only from all over Sarawak but even from outside of Sarawak itself, Kuching provides a double target market like a university town plus the emerging families suburb.
Miri & Bintulu — Shift Workers
Since people working in the oil, gas and industrial industries often work in shifts, a laundry that operates outside of the traditional hours from 9 to 6 would be able to get the demand which is lost by regular laundry.
Sibu — New Tourism Demand
Sibu has the same tendencies in terms of river tourism and Airbnbs like the cities located on the Peninsula. Thus, this city can serve as an example of homestay/short-stay laundry business partnership.
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Setting Up: Steps for East Malaysia
- Select your state and city first — do not consider Sabah and Sarawak together, but rather separately.
- Check out your equipment supplier’s capabilities of delivering to East Malaysia, and factor in the delivery schedule and maintenance parts available locally before you make any contract arrangements.
- Align your operation schedule with your customer base — flexible operating hours in industrial neighborhoods such as Miri and Bintulu, regular hours in student or family neighborhoods such as Kuching.
- Budget for shipping separately from the cost of your machines, since it may constitute an even larger part of your installation cost in comparison with launching in Peninsular Malaysia.
- Expect that your setup will take somewhat more time than in Peninsular Malaysia due to shipping schedule considerations.
Common Mistakes in East Malaysia
- Considering Sabah and Sarawak as one unified market rather than analyzing each city independently
- Not taking into account time frames for deliveries of equipment and underestimating its cost, causing either financial losses or delays in project launches
- Selecting an equipment provider without any distribution networks in East Malaysia and thus facing long-term waits for spare parts and maintenance services
- Disregarding shift work of industrial cities of Miri and Bintulu and failing to make profits during off-peak hours
- Applying pricing models that work well on the Peninsular market without considering purchasing power and local competitors
Conclusion
There is genuine scope for laundromats in Sabah and Sarawak, yet success will hinge upon understanding that each state – and indeed, each town in the state – is a unique market. The tourism traffic in Kota Kinabalu, the university student body in Kuching, and the shift work of industries in Miri and Bintulu all dictate separate strategies.
In setting up your laundromat in Sabah or Sarawak, Launch Laundry has helped laundry establishments in Malaysia since 2013 with East Malaysian logistics, reputable brands of equipment such as LG, Speed Queen, and Electrolux, as well as full installation assistance. Our experience will help ensure that your plans take into account the challenges of setting up business in Borneo, rather than merely mimicking a Peninsular Malaysia plan.
Frequently Asked Questions
These factors are usually more expensive because of the logistics involved in shipping goods from the South China Sea. However, there could be some places where the rent is lower as well as competition.