THE Institution of Engineers Malaysia (IEM) Sabah Branch welcomed the Federal Government’s RM18.7 billion allocation for Sabah under Budget 2027, saying it would support infrastructure development, improve public services and strengthen the state’s economic competitiveness.
IEM Sabah Branch Chairman, Ir Ts Tan KJ, said the allocation represented an increase of RM1.1 billion, or about 6.3 per cent, from RM17.6 billion in 2026.
He said the increase reflected the Federal Government’s continued focus on Sabah’s development needs and balanced regional growth.
“We appreciate the Federal Government’s continued commitment to Sabah’s development. Well-planned infrastructure is not only an important driver of economic growth but also a foundation for improving people’s quality of life, promoting balanced urban and rural development, and strengthening Sabah’s overall competitiveness,” he said in a statement on Saturday.
Tan welcomed continued investment in road infrastructure across Sabah and Sarawak, including about RM3.3 billion in combined road-related allocations for both states, as well as the ongoing implementation of the Pan Borneo Highway and other strategic connectivity projects.
He said improved road networks would strengthen urban-rural connectivity, enhance logistics efficiency, support industrial and tourism development, and create economic opportunities for rural communities.
He also highlighted the importance of improving Sabah’s electricity supply reliability and stability to attract investment and support manufacturing, industrial parks and emerging technology industries.
Water security, flood mitigation, river management, drainage infrastructure and public facility maintenance should also remain priorities, particularly amid climate change and increasingly severe rainfall events, he said.
“As climate change and extreme rainfall events present growing challenges, continued investment in sound engineering planning, modern technologies and effective infrastructure management will help strengthen the resilience of our urban and rural communities,” he said.
Tan said Budget 2027’s development priorities complemented the Sabah Government’s Sabah Maju Jaya (SMJ) 2.0 agenda, particularly in infrastructure development, energy security, industrial investment and human capital development.
He expressed confidence that closer cooperation between the Federal and Sabah Governments would accelerate economic transformation, attract quality investments and create more jobs for Sabahans.
“Engineering is not merely about constructing roads, bridges and public facilities. More importantly, it is about applying sound planning, innovative technologies and sustainable engineering practices to create safer, more convenient and better living environments for the people,” he said.
Tan also welcomed the Federal Government’s initiative to expand Public Service Department (JPA) scholarship opportunities, which are expected to benefit about 4,200 students from Sabah and Sarawak annually.
He said human capital development was essential to Malaysia’s long-term competitiveness, adding that Sabah would need more engineers, technologists and technical professionals as its infrastructure, energy, manufacturing and digital economy sectors expanded.
He encouraged young Sabahans to pursue careers in Science, Technology, Engineering and Mathematics (STEM), while developing skills in artificial intelligence, digital engineering, renewable energy and sustainable development.
“The engineering and technology talents we nurture today will become an important driving force behind Sabah’s economic development and social progress tomorrow,” he said.
Tan also welcomed the Federal Government’s continued commitment to implementing the Malaysia Agreement 1963 (MA63), including interim special grant arrangements and ongoing discussions on a fair and sustainable formula for future annual special grants.
He said constructive engagement between the two governments was essential to strengthening infrastructure development, improving public services and supporting Sabah’s long-term economic progress.
Reaffirming IEM Sabah’s commitment to supporting development initiatives, Tan said the organisation would continue contributing through technical expertise, professional training, knowledge-sharing and collaboration.
He stressed that sound engineering planning, effective project management, quality construction and proper infrastructure maintenance were crucial to ensuring public investments delivered sustainable, long-term benefits.
“We believe the positive outcomes of Budget 2027 should ultimately be reflected in better infrastructure, more reliable public services, greater investment and employment opportunities, and continued improvements in the quality of life of the people of Sabah,” he said.
Tan thanked the Federal Government for its continued attention to Sabah’s development needs and acknowledged the Sabah Government’s efforts to promote economic growth and infrastructure development.
He reaffirmed that IEM Sabah would maintain a professional, independent, practical and constructive approach in contributing towards a more progressive, resilient and prosperous Sabah.
