Kota Kinabalu: A RM6.402 billion budget has been proposed for Sabah in 2026 to reflect the mandate given to the newly formed state government, Deputy Chief Minister cum State Finance Minister Datuk Seri Masidi Manjun said.
He assured that development projects would be implemented “regardless of political affiliation”, while reforms would be introduced to enhance service quality, governance efficiency, openness and accountability.
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Themed “Accelerating Development, Prioritising the People’s Well-Being” it would be the foundation for the new government’s first year in office, as it embarks to raise living standards while steering transformation and development.
The estimated revenue is RM6.430 billion and despite a slight reduction from the 2025 budget, Sabah is expected to record a surplus of RM28 million.
Calling on all assemblymen to work together in the spirit of unity, he said the Budget was crafted amid economic uncertainties but aligned with the first year of the 13th Malaysia Plan (13MP) and the rollout of the Sabah Maju Jaya Development Plan 2.0.
It is guided by five key pillars, beginning with expediting the development of productive sectors and attracting investments to stimulate economic growth and generate state income.
The second pillar focuses on addressing socioeconomic imbalances and improving living standards through a more inclusive approach that ensures no community is left behind.
He said the third pillar prioritises human capital development by enhancing knowledge, skills, productivity and innovation, while ensuring a better quality of life for Sabahans.
The fourth pillar centres on strengthening development enablers, particularly basic infrastructure, utilities and public amenities, to support sustained economic growth.
The fifth pillar aims to strengthen the state government’s capacity, management and delivery system efficiency to ensure policies translate into tangible outcomes.
“To realise these pillars, the Government’s spending capability must be prioritised,” he said, stressing the need for a policy implementation machinery that is “more responsive, efficient, transparent and income-oriented”. He said government services must be managed prudently to prevent wastage, inefficiency and leakages, while ensuring public funds are used dynamically and responsibly.
The Finance Ministry received the largest allocation, with RM2.899 billion for supply expenditure and RM209.02 million for development.
This was followed by the Works and Utilities Ministry with RM1.122 billion in supply and RM534.28 million in development, and the Chief Minister’s Department with RM792.83 million in supply and RM190.58 million in development allocations.
Other ministries, including agriculture, rural development, local government, education, health, tourism, youth, industry and entrepreneurship, also received targeted allocations to support long-term growth, job creation and improved amenities.
He said the Government continued efforts to narrow the gap between supply and development expenditure, with the supply ratio proposed to be reduced to 78 per cent in 2026 from 85 per cent this year.
“These efforts will continue to be intensified to ensure development expenditure is expanded, providing a significant and inclusive impact on Sabah’s development,” he said.
