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Masidi tabling the 2026 Sabah Budget.
KOTA KINABALU (Dec 12): Sabah is set to enter 2026 with a modest RM28 million budget surplus under its RM6.4 billion 2026 State Budget, reflecting the state government’s disciplined financial management while prioritising the well-being of its people, said State Finance Minister Datuk Seri Panglima Masidi Manjun.
During the tabling of the state budget on Friday, Masidi revealed that the state’s estimated revenue stands at RM6.430 billion.
“Despite a slight reduction compared to the 2025 State Budget, after factoring in estimated revenue collection, the 2026 State Budget still records a surplus of RM28 million,” he said, highlighting the state’s commitment to long-term fiscal prudence.
The budget carries the theme “Accelerating Development, Prioritising the People’s Well-Being,” which aligns with the priorities of the newly formed State Government following the recent state election.
Masidi said the administration is prepared to fulfil the mandate of the people over its five-year term.
The 2026 State Budget is structured around five strategic development pillars: accelerating growth in productive sectors, addressing socioeconomic disparities, strengthening human capital, enhancing development enablers such as infrastructure, and improving government capacity and service delivery.
“Achieving these aspirations requires a government machinery that is more responsive, efficient, and dynamic,” Masidi noted.
He added that prudent spending is crucial to prevent wastage and ensure that funds are directed toward impactful initiatives.
Starting in 2026, the state government will restructure its Supply and Development Expenditure Votes to align programmes more closely with their intended purposes. Masidi said the move aims to stimulate long-term economic growth, create employment opportunities and improve amenities and physical facilities for the people.
The allocation breakdown by ministry includes RM2.899 billion in Supply and RM209.02 million in Development for the Finance Ministry, RM1.122 billion and RM534.28 million for the Ministry of Works and Utility, and RM792.83 million and RM190.58 million for the Chief Minister’s Department, among others.
Other key ministries, including Agriculture, Rural Development, Education and Health, also received significant allocations.
A major feature of the 2026 Budget is narrowing the gap between supply and development expenditure.
Masidi said Supply Expenditure, which accounted for 86 per cent of total spending in 2024, is expected to decrease to 78 per cent in 2026.
“This is part of our continuous effort to expand development expenditure, ensuring a more meaningful and inclusive impact on Sabah’s progress,” he said.
Masidi emphasised that higher development spending is critical for addressing regional disparities and upgrading essential infrastructure across the state.
“Our commitment is clear: to drive development at a faster pace while ensuring the well-being of all Sabahans is prioritised,” he added.
He concluded that the 2026 Budget is more than a financial plan; it is a foundation for transformation under the new government.
“By balancing fiscal responsibility with growth initiatives, Sabah is positioned for a more progressive, equitable and resilient future.”
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