Kota Kinabalu: The Sabah China Chamber of Commerce Vice-President Ir TS Tan KJ described the State budget as a comprehensive roadmap that balances fiscal prudence with ambitious plans to drive economic growth, upgrade infrastructure, and lift community well-being under the SMJ 2.0 framework.
Tan said the budget’s projection of a RM28 million surplus – coupled with its priority on development expenditure and structural reforms to cut operating costs – reflects strong fiscal discipline that will lay the groundwork for long-term, inclusive progress.
“This budget is more than just numbers on a page – it’s a clear direction for where Sabah is heading in the years to come,” Tan said.
“By focusing on both immediate needs and future opportunities, the government is building economic resilience that will benefit all Sabahans, while making the state more attractive to local and international investors – including those from China.”
At the heart of the budget are key infrastructure projects designed to enhance connectivity and reduce logistics barriers – critical for attracting trade and investment.
These include Phase 1B of the Pan Borneo Highway, which will link remote areas to urban centres; upgrades to Kota Kinabalu and Tawau airports to accommodate more international flights; expansion of Sepangar Bay Container Port to boost maritime trade; and statewide drainage and flood mitigation works to strengthen disaster resilience.
"These initiatives will not only make it easier for businesses to operate and connect with global markets but also create thousands of jobs during construction and beyond,” Tan noted.
“For Chinese companies looking to invest in Sabah, better infrastructure means lower costs and greater access to resources – a win-win for both the state and investors.”
The budget also throws its weight behind manufacturing, industrial parks, and small and medium-sized enterprises (SMEs).
Support is allocated to key hubs like Kota Kinabalu Industrial Park (KKIP), Palm Oil Industrial Cluster (POIC), and Sandakan Oil and Gas Industrial Park (SOGIP), alongside financing schemes and entrepreneurship innovation programs.
Tan highlighted that approved investments in Sabah had already reached RM11.36 billion by mid-2025 – a staggering 76% increase from the previous year – a trend he said the 2026 Budget will further accelerate.
“This growth shows that Sabah is becoming a preferred destination for investment, and the budget’s focus on enhancing business competitiveness will only strengthen that position,” he added.
A standout feature of the budget is its emphasis on the blue economy as a key driver of sustainable development, covering marine energy, green ports, advanced aquaculture technology, and coastal protection.
Through the Sabah Blue Economy Council, international research partnerships, and the Kudat Industrial Park Masterplan, the state is positioning itself as a regional hub for high-value, eco-friendly marine industries.
“The blue economy presents enormous potential for collaboration between Sabah and China, which has extensive experience in marine technology and green infrastructure,” Tan said.
“This focus aligns with global sustainability goals and ensures that growth is not at the expense of our natural resources – a crucial consideration for the state’s long-term future.”
