Kota Kinabalu: Sabah’s revenue for 2026 is projected to ease to RM6.430 billion amid continued exposure to volatile global commodity prices, 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 lower projection compared with the revised 2025 estimates reflects Sabah’s reliance on crude oil and crude palm oil (CPO), noting that while CPO prices remain above RM4,000, they are “only able to partially offset the decline in revenue from crude oil (CO)-based commodities, as CO prices are currently below US$65.”
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He said the 2026 revenue estimate comprises RM2.771 billion in tax revenue, driven mainly by State Sales Tax (SST) of RM2.614 billion, alongside land rent and port and harbour dues.
Non-tax revenue is projected at RM2.348 billion, largely from petroleum royalties of RM1.075 billion, interest and proceeds from investments of RM490.31 million, water sales of RM308 million and land premiums of RM160 million, he said.
Masidi said non-revenue receipts are expected to amount to RM1.311 billion, including RM1.161 billion in receipts and contributions from the Federal Government and RM150 million from other receipts.
Reflecting on recent performance, he said Sabah successfully maintained revenue collection at RM6.842 billion in 2024, extending his congratulations and appreciation to all parties involved in achieving the milestone.
For 2025, Masidi said revised revenue estimates are expected to rise by RM212.76 million or 3.3 per cent to RM6.658 billion, driven by higher collections from SST, federal receipts, investment income and land premiums, despite a decline in petroleum royalties.
He said the State Government has introduced measures to strengthen revenue, including adopting a reference price method for SST calculations on four petroleum products from October 2025 to ensure declarations are aligned with market prices and collections are optimised.
“The Government remains fully committed to addressing revenue leakages,” he said, citing special inspection operations conducted with federal and state agencies and urging revenue departments to strengthen enforcement to ensure collections are efficient and transparent.
Masidi also welcomed the High Court’s decision affirming Sabah’s constitutional right to the 40 per cent Special Grant, saying it marked “a significant achievement” and expressing confidence that ongoing negotiations with the Federal Government would have a meaningful positive impact on Sabahans.
