SABAH has unveiled an RM6.421 billion budget for 2025, focusing on tackling infrastructure woes, fostering economic resilience, and uplifting public welfare.
Sabah Finance Minister Datuk Seri Masidi Manjun described it as a people-centric budget aimed at delivering tangible benefits.
“This budget reflects our commitment to sustainable development and ensuring the well-being of Sabahans,” Masidi said at the State Legislative Assembly today.
The 2025 budget is a sharp increase from last year’s RM 5.737 billion allocation, marking an 11.9% rise.
“This is the largest budget in Sabah’s history. It reflects our ability to optimise revenue collection while addressing the needs of our people,” Masidi said.
The 2025 budget also maintains a surplus of RM 24.08 million with projected revenues of RM 6.445 billion, exceeding planned expenditures of RM 6.421 billion.
Addressing legacy issues
Masidi said RM 2.607 billion has been earmarked for infrastructure, focusing on dilapidated roads, and water and electricity shortages.
“We take water insufficiency seriously. This allocation will improve supply systems and upgrade water treatment plants,” he said.
He also announced RM 75 million for a new Kundasang-Ranau alternative road, citing the persistent traffic congestion in the area.
The particular road is a vital road that links the West Coast to the East Coast of Sabah.
Masidi noted some portion of the fund would also be channelled to build concrete bridges in Pensiangan and Pitas.
“We are addressing legacy issues head-on to ensure Sabahans have access to basic services,” he added.
Boosting agriculture and food Security
Agriculture receives RM 610.85 million, with RM 32.5 million allocated to revive the Sabah Rice and Paddy Board, said Masidi.
“Our goal is to reduce dependency on imports and increase rice self-sufficiency to 30% by 2026,” Masidi said.
Tourism and green economy
Tourism, a key growth driver, is allocated RM 102.87 million to enhance eco-tourism and prepare for Visit Malaysia Year 2026.
“We aim to attract 3.7 million visitors and RM 9.1 billion in receipts by 2026,” Masidi noted.
He also highlighted the Sabah Blue Economic Framework, a new initiative to sustainably harness marine resources.
“This is about building a better Sabah not just for today, but for future generations,” he said.
Welfare and poverty eradication
A total of RM 488.5 million is set aside for poverty eradication, including 3,000 Rumah Mesra SMJ units and monthly RM300 aid for poor households under the Sentuhan Kasih Rakyat programme.
“This demonstrates our commitment to uplifting the poor and ensuring no one is left behind,” Masidi said.
Education and youth development
The budget allocated RM 127 million for scholarships, benefiting over 7,000 students, with additional funds for sports development.
“We are empowering our youth to become future leaders through education and skills training,” he said.
Increased revenue drives bigger budget
Masidi attributed the increased budget to a higher projected revenue of RM 6.445 billion, driven by enhanced tax collection and diversification of income sources.
“We have introduced new taxes on silica sand and palm oil biomass while improving enforcement to prevent leakages,” he said.
The state’s revenue strategy ensures sustainable financial growth while maintaining a budget surplus of RM 24.08 million.
“This is a bold step forward. It’s a budget for the people and a prosperous Sabah,” Masidi said.
Key ministries see increases and reductions
Sabah’s 2025 Budget highlights significant increases in infrastructure and rural development while implementing minimal cuts across other sectors.
The Ministry of Works recorded the largest gain, with its development budget rising by RM 60.34 million, from RM 689.66 million in 2024 to RM 750 million in 2025, reflecting the state’s commitment to improving infrastructure.
The Chief Minister’s Department also saw a moderate increase, with its total allocation growing by RM19.53 million, from RM 890.47 million in 2024 to RM 910 million in 2025.
The Ministry of Rural Development experienced a combined boost of RM 13.83 million, with supply and development budgets increasing from RM 227.17 million to RM 241 million.
Meanwhile, cuts were kept minimal, with the Ministry of Science, Technology, and Innovation experiencing a supply budget reduction of RM 5.13 million, dropping from RM 180.13 million to RM 175 million, while its development budget remained unchanged.
The Ministry of Tourism, Culture, and Environment recorded the most notable reduction, with a combined allocation drop of RM 6.91 million, as its supply budget fell by RM 5.87 million and development funds decreased by RM 1.04 million.
The 2025 Budget underscores Sabah’s focus on balancing growth in critical sectors like infrastructure and rural development while ensuring minimal disruptions in other key areas. – November 15, 2024
