Kota Kinabalu: Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said Sabah remains a priority in 2026 Budget’s national development allocations, ensuring Sabahans enjoy progress and basic facilities on par with other states.
“Budget 2026 provides assurance that Sabah will continue to be a priority in the allocation of national development funds, in line with the Madani Government’s determination to ensure the people of Sabah enjoy progress and basic amenities equivalent to other states,” the Kota Kinabalu MP said in a statement.
He voiced appreciation to Prime Minister cum Finance Minister Datuk Seri Anwar Ibrahim for the Federal Government’s continued commitment to Sabah’s development through the newly tabled budget.
He also noted that despite Sabah being among the major contributors to the nation’s Gross Domestic Product (GDP), the State continues to face challenges in infrastructure development gaps, particularly involving road networks, water and electricity supply systems and disaster preparedness.
“The budget reinforces the Federal Government’s resolve to strengthen infrastructure development, expand access to stable electricity supply and enhance the State’s capacity to sustainably address natural disasters.
“On behalf of the people of Sabah, I extend our highest gratitude to the Prime Minister for the Madani Government’s ongoing concern and commitment towards Sabah’s development. This budget shows that the Federal Government is serious about bridging the development gap and ensuring equitable progress across all states,” Chan said.
“These measures reflect the Madani Government’s commitment to strengthening Sabah’s basic infrastructure, improving the quality of life of the people and building the State’s resilience in facing natural disaster challenges.
“As a Sabahan, I appreciate the special attention given by the Finance Minister to rural and interior development issues, particularly in ensuring road access, clean water and electricity are enjoyed comprehensively,” he said.
He is confident that with transparent and efficient implementation, 2026 Budget can serve as a catalyst for Sabah’s economic progress and the strengthening of people’s welfare throughout the State.
“With transparent and efficient implementation, 2026 Budget is believed to be capable of becoming a catalyst for Sabah’s economic advancement and strengthening the welfare of the people throughout the state,” he said.
For the record, Sabah received the highest development allocation in 2026 Budget at RM6.9 billion, reinforcing the Federal Government’s commitment to the spirit of the Malaysia Agreement 1963 (MA63).
The Special Grant Rate for Sabah is also maintained at RM600 million, following last year’s increase from RM300 million.
A total of RM1 billion has been allocated for water projects in Sabah, including the installation of new pipes in Tawau and replacement of old pipes in Kota Kinabalu, Penampang and Putatan, despite water management being under state government responsibility.
A total of RM1.2 billion is provided to ensure continuity of electricity supply even though energy regulation has been devolved to the State Government, with an additional RM765 million for the Southern Link Transmission Line Project to ensure a more stable and resilient electricity transmission system.
RM1.67 billion is allocated to implement Pan Borneo Sabah according to schedule, strengthening the road network throughout Borneo. Meanwhile, Sarawak-Sabah Link Road (SSLR) Phase 1 is expected to be completed in November 2026, while SSLR Phase 2 is under construction and expected to be completed by mid-2029.
For disaster management, the Madani Government has allocated RM39 million for the Second Phase Flood Mitigation Project and to rebuild flood-affected schools in Inanam, along with RM220 million to redevelop IPG Gaya Campus which was damaged by a landslide.
RM2.3 billion is also invested in airport development, including Kota Kinabalu and Tawau. RM80 million allocated for rebranding Hospital Queen Elizabeth 2 as the Sabah Heart Centre. A new Health Clinic will also be built in Nabawan.
Nearly RM2 billion is provided to upgrade more than 520 dilapidated schools, particularly in Sabah and Sarawak. Three new schools will be built in Sabah, including SK Sri Apas Jaya, Tawau; SK Sabandar, Tuaran; and SK Alam Mesra, Kota Kinabalu.
The Government supports economic activities at national borders by improving basic infrastructure, including building a new 28-kilometer road from Kalabakan, Sabah to Simanggaris, Indonesia.
To enhance security levels in the East Coast of Sabah, the Tun Sharifah Rodziah Sea Platform, which will end its operational period in June 2026, will be replaced with a new Multi-Purpose Command Platform.
