KOTA KINABALU: Sabah’s revenue is projected to ease to RM6.43 billion in 2026 after holding firm at RM6.84 billion in 2024 and a revised RM6.66 billion in 2025, reflecting softer crude oil prices despite resilient palm oil earnings, 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.
Masidi said the State had maintained a strong revenue base in 2024 and recorded a modest 3.3 per cent uplift in revised 2025 collections on the back of state sales tax, federal receipts, investment income and land premiums, even as petroleum royalties declined.
He said the 2026 estimate factors in Sabah’s continued exposure to global commodity volatility, with crude oil prices below USD65 only partly offset by crude palm oil prices above RM4,000, shaping a more cautious outlook.
To strengthen collections, Masidi said the State has introduced a reference price method for state sales tax on selected petroleum products from October 2025, tightened enforcement through joint inspections, amended tax laws, reviewed rates and charges, and accelerated cashless and digital revenue systems.
He said Sabah also welcomed the High Court’s affirmation of its constitutional right to the 40 per cent Special Grant, noting negotiations have begun and expressing confidence that sustained fiscal discipline and reforms would protect public services and the people’s well-being.
