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Sabah is expected to collect less from its State Sales Tax (SST) on the oil and gas sector this year due to declining production and fluctuating global prices.

Deputy Chief Minister II Datuk Seri Masidi Manjun said collections, which topped RM2 billion last year, are unlikely to reach the same level in 2026.

He noted the volatility of oil and gas revenue, tied closely to global commodity prices, but stressed that the five per cent SST remains vital in supporting the state’s finances.

Proceeds have funded social assistance like the Syukur Aid scheme, providing RM300 monthly to low-income households, and infrastructure projects, including road and water supply improvements.

Masidi highlighted the contributions of industry players such as Hibiscus Petroleum Bhd and Petronas in strengthening Sabah’s economic and social programs.

At a Hari Raya Aidilfitri open house hosted by Hibiscus Petroleum, Masidi witnessed CSR donations of RM5,000 each to two welfare NGOs: Madrasah Rumah Transit Mualaf Sabah and Tahfiz Bidayatul Hidayah, Kundasang.