KOTA KINABALU: Sabah’s economy is expected to grow moderately in 2026 on firmer fiscal footing and higher investment, driven by tourism recovery, trade activity and job growth, Deputy Chief Minister cum State Finance Minister Datuk Seri Masidi Manjun said when tabling the 2026 State Budget at the State Legislative Assembly on Friday.
He said Sabah’s GDP expanded by 1.1 per cent to RM84.3 billion in 2024, with services remaining the main contributor at 52.4 per cent, while GDP per capita eased to RM30,605 amid faster population growth, and the State accounted for 5.1 per cent of national output.
Masidi noted that despite global uncertainties and softer trade, Sabah posted a RM8 billion trade surplus from January to September 2025, with exports easing on weaker crude petroleum and fertiliser shipments, imports rising on machinery and transport equipment, and inflation staying low at 1.1 per cent on resilient household spending.
He said household incomes rose to an average RM6,498 in 2024 and poverty fell to 17.7 per cent, while growth in 2026 is projected at about 2.0 per cent, supported by tourism linked to Visit Malaysia Year 2026, the opening of the Universiti Malaysia Sabah Specialist Hospital, and ongoing construction projects including Pan Borneo Highway Phase 1B.
Masidi added that capacity upgrades at Kota Kinabalu and Tawau airports, the expansion of Sepanggar Bay Container Port, and steady national growth of 4.0 to 4.5 per cent amid a subdued global outlook are expected to support investment flows and keep Sabah’s economy resilient next year.
