On the east coast however many of the Sea Bajaus still live in the traditional way. Fishing is the main activity. While many have settled on land or in water villages some are still nomadic boot dwellers.

The Bajau are actually from the southern Philippines, and arrived in Sabah more than 200 years ago. There are still close cultural ties between Sabah and Philippines Mindanao province.

Bajau  the second largest ethnic group in Sabah is  a sea-oriented, boat-dwelling, nomadic groups, have been a nomadic, seafaring people for most of their history, living off the sea by trading and subsistence fishing. Many Bajau still practise that same lifestyle today, this explains why they are commonly called `sea gypsies' of Malaysia

The Bajau people started their settlement by keeping close to shore by erecting houses on stilts, and traveling using Lepa-Lepa, handmade boats which many lived in. They chart particularly the waters of the Sulu Sea, off the southwestern coast of the Philippines, and the various seas that surround the Indonesian island of Sulawesi.

Bajau are present along both the eastern and western coasts of Sabah and in the foothills bordering the western coastal plains, from Kuala Penyu to Tawau and Semporna on the east. Many Bajau people of the Sabah east coast retain their seaborne lifestyle. And this makes the annual Semporna Regatta a highly anticipated spectacle for both the locals and outsiders.

Tawau has many ethnic groups from Indonesia and the Philippines. This little Town over the years has become  a melting pot where various cultures meet. The traditional and cultural heritage of  numerous ethnic groups from these 3 countries are united in diversity as Malaysian.

Besides the Malays, Chinese and Indians and indigenous groups like Kadazan, Murut, Bajau, Suluk and Tidung. Here we found minority group of Sabah such as  people of Arab, Pakistani, Cocos, Timorese, Tator, Banjarese, Javanese and Bugis descent.
 

In Sabah there are  32 indigenous ethnic groups in Sabah , speaking  over 50 dialects and languages. Making Sabah an multi-cultural and multi-religious region where everybody lives together in harmony. The main ethnic groups in Sabah are Malay, Kadazan, Chinese, Bajau, and Murut.

The main indigenous group are the Kadazandusun  living in the plains in the West of Sabah. Once primarily farmers, they are now mostly engaged in salaried employment  jobs from industries over tourism to the government departments.

The second most important group are the Sea Bajau, once a seafaring Muslim tribe referred as ‘sea gypsies’, though today only a handful of Bajau still live the traditional life of true nomads of the seas. They have settled along the east coast of Sabah in typical villages built right above the water.

The third most important ethnic entity in Sabah are the Murut, an interior tribe once famous for its intrepid warriors, and reputedly the last to give up the ancient custom of head-hunting.

The most important non-indigenous people in Sabah are the Chinese, and many businesses are run by Chinese families.

There is a unique group of people in Sabah : the illegal immigrants.  They are important to the economy of Sabah. Officially, 1.8 million people share 73,620 sq. km but large number of illegal immigrants boost the real population to well over 2.5 million. Sabah attracts illegal immigrants with lower population densities, much better prospects for employment and better minimum wages (RM10 per day for illegal immigrants working in plantations) compared to that in the Philippines or Indonesia. Several of the problems associated with illegal immigrants include the marine version of shifting cultivation, crime, diseases and street children.

Tawau used to be a haven for illegal immigrants from Indonesia. It is now 'under control' with the help from Federal Government in KL. But it is still the gateway to enter Malaysia for some successful illegal immigrants using boats from Indonesia via Nunukan, Pulau Nyamuk and Sebatik.

In using road to enter Tawau town, every vehicle with passengers has to show their documents and identification before they are allowed to pass security check points. But using sea routs the checking can be easily skipped. The sea is so vast and the coast line is so open with no check point.

Those illegal immigrants from Indonesia entered Sabah illegally before 2002 many obtained citizenships from the National Registration Department.

Tight actions taken by the Federal Government of Malaysia has successfully restrict the grow of illegal immigrants population in Tawau for the last few years.  Street children for example, just few years ago we see these stateless children every day sleeping in front those banks in Fajar commercial area are today no where to be seen. Instead the same area seen an increase of businessmen and tourist from Sarawak and Kuala Lumpur.