In the past, Sabah has often been reported as Malaysia’s poorest state, with the recorded highest incidence of absolute poverty among all the other states. The consumption patterns of households in Sabah have been significantly impacted by such circumstances. This further draws light on the adverse impact on the broader economy, as low levels of spending may restrict demand for products and services, stifling economic growth. The understanding of households’ consumption functions based on the Permanent Income Hypothesis (PIH) will advance knowledge in identifying the key factors that influence the households’ spending decisions. Pointing out the scant number of past studies done within this very context, and focusing on the Sabah state in particular, further motivated this study, this paper aims to develop a conceptual framework that can estimate and examine the households’ consumption functions in Sabah. As such, the methodology of drawing upon narrative reviews from research in the past will be used in this paper to develop the conceptual framework. The result of this study built upon the framework developed will help in identifying the factors that explain the households’ consumption patterns, in particular, whether the function estimated will be consistent with the Permanent Income Hypothesis (PIH). It is hoped that the conceptual framework built will aid in providing valuable empirical insight for policymakers in designing effective policies that can uplift households that are living in poverty.

The development of the maize agribusiness system is highly dependent on the role of social capital in facilitating interaction among actors in the chain of activities ranging from the provision of farm supplies to marketing. Therefore, this research aimed to characterize the key elements of social capital specifically bonding, bridging, and linking, as well as to demonstrate their respective roles. Data were collected from farmers and non-farmers actors engaged in various activities in the maize agribusiness system. The data obtained were processed using ATLAS Ti, applying open, axial, and selective coding techniques. The results showed the roles played by bonding, bridging, and linking social capital in the interaction between farmers and multiple actors in activities such as providing farm supplies, farming production, harvesting, post-harvest, and marketing. The combination of these social capital forms acted as the glue and wires that facilitated access to resources, collective decision-making, and reduced transaction costs. These results have theoretical implications, suggesting that bonding, bridging, and linking should be combined with the appropriate role composition for each activity in the agribusiness system.