Sabah Budget 2026: Stability before speed

In logistics, stability is not a luxury. It is the precondition for movement. Ships do not berth on optimism. Cargo does not flow on slogans. Investors do not commit to applause. Systems move only when fundamentals are stable, predictable, and disciplined.

Viewed through this lens, Sabah Budget 2026, presented by Datuk Seri Masidi Manjun under the theme “Driving Development, Prioritizing the People’s Well-Being” on Friday, is not a populist document. But it is a stabilization budget — and that is precisely why it matters.

The headline figure will not excite social media: a projected surplus of RM28 million, with revenue of RM6.43 billion against expenditure of RM6.402 billion. But in public, a surplus — however modest — is a declaration of discipline. Bravo! It signals that Sabah is stepping away from reactive spending and returning to fiscal control.

Revenue diversification also deserves attention. Tax revenue is expected to contribute RM2.771 billion, largely from state sales tax on petroleum products. Non-tax revenue of RM2.348 billion, driven by petroleum royalties and investment income, reinforces Sabah’s resource base, while RM1.311 billion in federal contributions provides additional fiscal support.

These figures matter because stability is not built on rhetoric; it is built on credible numbers.

More importantly, Budget 2026 continues a deliberate shift toward development expenditure. Operational spending, at RM5.202 billion, now accounts for 78% of total expenditure, down from 86% in 2024. This is not cosmetic. It reflects a conscious effort to trim administrative drift so that more resources can be channeled into productive capacity.

Development expenditure of RM1.2 billion from state funds, reinforced by substantial federal allocations, sends a clear message: public money must build assets, not merely sustain administration.

Ports, roads, water systems, power supply, and digital infrastructure are not political trophies. They are economic arteries. When they function well, growth follows quietly. When they fail, costs rise invisibly and relentlessly.

Every budget ultimately succeeds or fails at the last mile. Billions can be approved for development, but when procurement drags, coordination falters, and maintenance is neglected, the economy remains clogged. Logistics teaches a simple, unforgiving truth: a system moves only as fast as its weakest link. That is why infrastructure spending must be judged not by the size of the announcement, but by how effectively it improves travel time, shortens turnaround time, strengthens reliability, and lowers the cost per unit moved.

In Sabah, this means treating ports, airports, roads, water supply, electricity, and digital infrastructure as one integrated logistics ecosystem, rather than as isolated ministries competing for attention.

Ports are productivity engines, not passive facilities. They are economic multipliers. Every hour a vessel waits at port carries a cost. Every congested gate pushes prices higher. Every inefficient process quietly and relentlessly erodes Sabah’s competitiveness. If Sabah is serious about growth, port efficiency must be treated as frontline public service delivery, measured through clear and accountable outcomes — shorter vessel and truck turnaround times, higher berth productivity, reduced yard dwell time, and wider digital adoption across the entire port community system.

This is where institutional stability at Sabah Port Authority (SPA) and Sabah Ports Sdn. Bhd. (SPSB) becomes critical. Ports do not improve through leadership churn or political micromanagement. They improve through continuity, professional management, and long-term planning.

A port authority that is constantly unsettled cannot modernize, just as a port operator without policy stability cannot invest with confidence. Continuity is not stagnation; it is operational maturity.

The Blue Economy, too, will not be unlocked by conferences or slogans alone. Its real value lies in functioning logistics chains — reliable landing facilities, adequate cold storage, effective quality control, robust traceability systems, seamless inland connectivity, and genuine export readiness. Fish, seafood, and marine products lose value with every minute they remain trapped in inefficient systems, and no amount of rhetoric can compensate for that loss.

Budget 2026’s emphasis on productive sectors and infrastructure provides the right architecture. The next step is execution discipline: fewer scattered initiatives, more end-to-end value chains that connect fishermen to markets, not just to announcements.

This is a budget that quietly demands discipline. As the saying goes, “Don’t play play!” A modest surplus leaves little room for waste. That is why the Budget’s emphasis on governance, efficiency, and anti-leakage is decisive. In logistics, the cheapest form of capacity expansion is maintenance. Fixing what already exists often delivers more value than launching new projects that cannot be sustained.

Sabah must now make clear choices: to prioritize maintenance over monument-building, to enforce strict procurement discipline, to publish realistic delivery timelines, and to report progress transparently.

Confidence is never built on promises; it is built on predictable execution.

Seen in the bigger picture, Masidi’s Budget 2026 is not about dramatic turns or political theatrics. It is about calm correction. After years of turbulence, Sabah does not need fireworks. It needs systems that work quietly, consistently, and professionally. Economic credibility is earned through restraint, planning, and delivery — not rhetoric.

In logistics, progress is rarely loud. It is measured in minutes saved, costs reduced, and reliability restored. Sabah Budget 2026 chooses stability over spectacle — and that is its strength. If institutional continuity is preserved, SPA and SPSB are allowed to operate professionally. If infrastructure spending is executed with discipline, Sabah will move — not in sudden leaps, but with steady momentum. And in logistics, steady momentum is how real transformation begins.