Inter-district and interstate travel are no longer prohibited under new guidelines issued by the government.
Defence Minister Ismail Sabri Yaakob said the exception is for areas under an enhanced movement control order.
For travelling into Sabah, individuals must get a Covid-19 test three days before entry. Only those without symptoms and have negative test results will be allowed in.
However, the government is still looking into what tourism activities will be allowed or prohibited.
Ismail said there will be no more police roadblocks starting Monday but will step up enforcement of social distancing standard operating procedures.
Meanwhile, the two-person per car limit will also no longer be enforced, and that the number of passengers will depend on the vehicle's capacity.
A 7-seater MPV, for example, can seat seven people.
Ismail, however, said vehicles that are over capacity can still be stopped for violating road ordinances.
More updates to the SOP are expected.
The move comes after the government decided to end the conditional MCO for most areas.
Ismail said if the conditional MCO is continued, the country's GDP will lose RM300 million per day.