Sabah gets RM18.7 billion federal allocation under Budget 2027
Chief Minister Hajiji Noor said the funding would help address water, electricity and road problems, while Kudat is being considered for a marine-based industrial hub.
Sabah’s federal allocation will rise to RM18.7 billion under Budget 2027 from RM17.6 billion in 2026, Chief Minister Datuk Seri Hajiji Noor said. He said the funding would support improvements to public services and basic infrastructure, particularly water supplies, electricity and roads.
Speaking at a community programme in Kudat, Hajiji said the federal budget presented by Prime Minister Datuk Seri Anwar Ibrahim on Oct 9 included RM3.3 billion for road development across Sabah and Sarawak. He also cited RM350 million for maintenance of federal roads.
For Sabah’s own budget, he said the government was assessing residents’ needs and the state’s financial resources alongside its Sabah Maju Jaya (SMJ) 2.0 Roadmap for 2026 to 2030. Priorities would include education, housing, welfare and the people’s economy.
Hajiji said state revenue reached RM6.76 billion in 2025 and expressed confidence that collections could exceed RM7 billion in 2026 through more diverse revenue sources and prudent financial management.
He also outlined a long-term proposal to make Kudat a regional Blue Economy hub. A proposed industrial park under the 13th Malaysia Plan would be led by the Sabah Economic Development Corporation (SEDCO), combining maritime activities with green technology.
A master plan is being prepared for an initial 1,205 acres (487.6 hectares) of SEDCO land in Kampung Limau-Limawan and Parapat Laut, he said. The project would focus on seafood processing, deep-sea fishing and improvements to traditional coastal fishing structures known as bagang. It also includes a proposed port intended to support regional trade and logistics.
