Sabah Budget 2027 to be based on state revenue capacity – Masidi

WhatsApp Image 2026 11 08 at 7.22.21 PM

By David E.

KOTA KINABALU: Nov 8, 2026 – The preparation of the Sabah Budget 2027 will take into account the state’s revenue position so that expenditure planning is aligned with the government’s financial capacity.

Deputy Chief Minister II who is also Sabah Finance Minister, Datuk Seri Panglima Masidi Manjun, said financial management and good governance are crucial so that every allocation is used prudently and in line with the state’s development priorities.

He said a large portion of allocations will continue to be focused on addressing basic infrastructure problems, especially water supply, electricity and the road network, which remain priorities in Sabah.

“In preparing the 2027 Budget, we need to ensure that the estimated expenditure is commensurate with the state’s revenue. Good financial management is crucial so that every allocation can be utilised according to priorities,” he said.

He said this to reporters at the Deepavali Celebration at Magellan Sutera Resort here today.

On water supply, Masidi said the solution requires long-term planning and phased implementation, with several projects expected to take two to three years to complete.

“The water supply problem is not something that can be resolved in a short period. We need to view it in the long term because the implementation of related projects may take between two and three years,” he said.

Meanwhile, the remaining RM900 million in additional allocation from the Federal Government is expected to raise the total allocation Sabah could potentially receive to nearly RM8 billion.

However, Masidi explained that the additional allocation is still in the process of fulfilling the prerequisites and conditions set by the Federal Government.

He said the State Government is now awaiting the disbursement of the allocation and hopes it can be received by the end of this year.

“The additional allocation will be utilised to finance the state’s development to improve the wellbeing and bring benefits to the people,” he said.

Source: MOF

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