Kota Kinabalu: The Federation of Sabah Industries (FSI) has welcomed the Federal Government’s focus on regional growth, SME resilience, infrastructure improvements, and higher-value economic opportunities under Budget 2027.
FSI president Natalie Fung (pic) said the increase in Sabah’s federal allocation to RM18.7 billion, alongside investments in road connectivity and power supply, provides an important opportunity to strengthen the state’s economic foundations.
She noted, however, that the true measure of success lies in translating these funds into tangible improvements for local business operations and overall living standards, particularly as companies navigate ongoing pressures from logistics, utilities, regulatory compliance, and the upcoming RM2,000 minimum wage in June 2027.
Fung urged the Government to balance wage increases with automation aid, skills upgrading, accessible financing, and robust infrastructure delivery, while ensuring local manufacturers and suppliers are prioritised in major supply chains and state projects.
She added that Budget 2027's effectiveness must ultimately be judged by actual funds disbursed, completed infrastructure, and quality jobs created to build a resilient, competitive economy for Sabahans.
