Moral education is one of the branches of knowledge that is very important in the formation of a superior pupils identity. Strong moral education in an institution is seen to be able to help dealing with the problem of social issues among students. Various approaches have been carried out in an efforts to handle the social issues from continuously spread, for instance the introduction of moral education in schools. Therefore, this research was implemented to study the importance of morals among the pupils in Sabah. This is a qualitative study, using bibliographic methods by referring the materials or scientific resources related to the focus of the study. The documents that were analyzed consisted of journals, books and review of articles related to the formation of morals and ethics which were analyzed thematically to study the importance of morals among students in Sabah. This study found that there are several importance of moral education in daily life such as (i) forming a superior pupils identity, (ii) to build civilized and polite pupils, (iii) forming a spirit of brotherhood among pupils and (iv) forming pupils' awareness of social life. It can be concluded that moral education is able to apply the values of Islam in human beings towards forming the personality of a good believer person who places absolute importance on trust and obedience to Allah SWT. This study can be used as a reference to MoE, teachers and also parents in streamlining the application of Islamic Education values so that the goal can produce an excellent people.