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Sabah passes RM6.4 billion surplus budget for 2026

Sabah’s 2026 state budget, with RM6.43 billion revenue and a RM28 million surplus, focuses on development and public welfare.

KOTA KINABALU: The Sabah State Legislative Assembly has approved the state’s Supply Bill 2026.

The budget was passed via a voice vote after a debate and winding-up session that began last Monday.

State Finance Minister Datuk Seri Masidi Manjun tabled the RM6.402 billion budget last Friday.

Themed ‘Driving Development, Prioritising the People’s Well-being’, the budget projects state revenue of RM6.43 billion for 2026.

This results in an estimated surplus of RM28 million.

During his winding-up speech, Masidi outlined several strategic measures to strengthen fiscal governance.

These include a comprehensive review of the state sales tax policy and increased engagement sessions with taxpayers.

The State Sales Tax Unit is also being restructured into a full division.

“The review of the state sales tax policy is being conducted thoroughly, in collaboration with relevant agencies,” Masidi said.

He added that engagement sessions aim to understand industry operations and ensure policies meet the economic sector’s needs.

The government plans to eventually upgrade the division into a full department for more strategic policy planning.

Assembly Speaker Datuk Seri Kadzim M Yahya announced the bill’s passage after its third reading.

He later adjourned the sitting sine die. – Bernama

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