Kota Kinabalu: Sabah’s Budget 2026 is being positioned as both a fiscal test and a development statement, with the State Government proposing disciplined spending while accelerating long-delayed structural improvements.
Deputy Chief Minister II cum Finance Minister Datuk Seri Masidi Manjun said the budget reflects a conscious balance between living within the State’s means and investing for future growth.
Speaking at the Sabah Budget 2026 Roundtable Discussion, he said the global environment remains uncertain amid trade frictions, geopolitical risks and climate-related disruptions.
“These pressures require Sabah to be prudent, proactive and focused in protecting its fiscal position while accelerating high-impact development,” he said.
He said Budget 2026 is framed around five pillars covering growth acceleration, social inclusivity, human capital development, infrastructure strengthening and improved government delivery.
The State Government, he said, is proposing an estimated supply expenditure of RM6.402 billion with estimated revenue of RM6.430 billion.
“This would result in a surplus of RM28 million, which he described as modest but reflective of fiscal discipline,” he said.
Masidi said the State is continuing its shift towards development-led spending to address structural challenges rather than short-term issues.
He noted that for 2026, Sabah is proposing RM1.865 billion in development expenditure.
Under the Thirteenth Malaysia Plan, the State has an approved development ceiling of RM12.02 billion to fund 1,173 projects. This represents the highest development allocation in Sabah’s budget history.
“The scale of allocation must now be matched by effective and timely implementation,” Masidi said.
Also present were Assistant Finance Minister Datuk Mohd Ishak Datuk Ayub, Bank Islam Malaysia Berhad Director of Treasury and Markets Azdini Nor Azman, BIMB Securities chief executive officer Dr Rosnani Rasul and other invited guests.
