By David E.
KOTA KINABALU: Oct 23, 2026 – The RM18.7 billion allocation for Sabah under the 2027 Federal Budget should not be assessed solely on the total sum, but must instead be viewed in terms of spending effectiveness and the real benefits to the people.
Johari Suhaimin, Political Secretary to the Deputy Chief Minister II who is also Sabah Finance Minister, said the allocation also covers the Federal Government’s operating expenditure, including civil servant salaries and the operating costs of ministries and departments serving in Sabah.
He said Deputy Chief Minister II who is also Sabah Finance Minister, Datuk Seri Panglima Masidi Manjun, had previously explained that the allocation not only covers development projects but is also used to finance the management expenditure of the Federal public service, particularly in the education and health sectors, as well as the implementation of Federal development projects in Sabah.
“The RM18.7 billion sum is not entirely funds channelled directly to the State Government or a specific allocation for new development projects,” Johari said in a statement today.
He said what is more important is ensuring every allocation can be translated into improved service quality and the resolution of basic problems still afflicting the people of Sabah.
“Water supply, electricity, roads and basic infrastructure in rural areas still require serious attention, even though development allocations are provided every year,” he said.
Johari said geographical factors, the size of the territory and the high cost of infrastructure construction also require a development approach that takes into account Sabah’s real needs.
However, he said these challenges should not be used as an excuse for project implementation delays or weaknesses in service delivery.
In this regard, he stressed the importance of coordination between the Federal Government and the State Government, including setting project targets, monitoring implementation progress and ensuring transparency in the use of allocations.
“The people must be given a clear explanation of the purpose of an allocation and understand the extent to which the implementation of the project can improve the well-being of the community,” he said.
On a related development, Johari stressed that the issue of special grants based on 40 per cent of the Federal net revenue from Sabah cannot be equated with the annual Federal Budget allocation.
He said the special grant has its own constitutional basis, particularly under Articles 112C and 112D and the Tenth Schedule of the Federal Constitution.
He said resolving the issue is important to provide fiscal certainty to the State Government so that development planning can be carried out in a more organised and sustainable manner.
“The Federal Government and the State Government have a shared responsibility to ensure every allocation is spent transparently, efficiently and delivers real benefits to the people.
“The success of a budget must be assessed not merely through the amount of funds announced, but based on development outcomes and improvements in the quality of life of the people of Sabah,” he said.
