Recognizing the needs for better standards of living and education for Malaysians in Sabah, and in order to create an organisation which would address those needs more effectively and expeditiously, an enactment for the establishment of Yayasan Sabah was passed by the Sabah Legislative Assembly in 1966. Within this broad parameter, the Yayasan Sabah Group has been extensively involved in the provision and improvement of the socio-economic development of Malaysians in Sabah.

In the commercial and industrial sectors, the Yayasan Sabah Group is acknowledged as a pioneer, leader, innovator and facilitator of growth. To sustain its effective role in generating funds for its socio-economic programmes, the Group has expanded its income generation base from the traditional forestry sector to include other productive sectors such as agro-plantation, real-estate, hospitality, eco-tourism, biotechnology and transportation. This is in line with the strategic direction or the "Halatuju" or development direction of the State which focuses on agriculture, tourism and manufacturing.