‘There is no lack of political will, just financial hurdles’ - Masidi
THE financial hurdles Sabah faces aren't from a lack of political drive, but rather tight budgets, explained State Finance Minister Datuk Seri Masidi Manjun.
Basic necessities - water, power, roads - are in high demand, but spending must match what's available to keep finances stable, he stressed.
"The needs, both immediate and future, are massive," he admitted. "We're playing catch-up."
He said top funding priority was for ministries handling essential services. The Works and Utilities Ministry leads the pack, tackling rural water access, electricity, and road networks.
Federal power subsidies remain crucial -RM700 million this year, rising to RM880 million by 2026 which is paid directly to Sabah Electricity Sdn Bhd based on actual usage.
Looking ahead, RM3.54 billion is earmarked for Sabah's power grid upgrades from 2024-2030, covering rural electrification and special Energy Transition Ministry projects.
He said Sabah's RM6.5 billion yearly revenue trails far behind Sarawak's, limiting development spending.
"We spend only what we can afford," Masidi emphasized, warning against fiscal overreach.
He said efforts continue to balance operational and development budgets, though boosting income and reserves remains key.
“RM728 million has been allocated for road repairs, plus RM1.027 billion for Sepanggar Container Port upgrades, due for completion in 2025.”
He also said that 324 federal initiatives were completed under Rolling Plan 5 of the 12th Malaysia Plan, ranking Sabah second nationally for completions after Sarawak.
"Better financial management and governance are non-negotiable for growth," Masidi concluded. "Stronger reserves mean greater independence and stability." – December 20, 2025
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