THE Sabah government is seeking an additional RM1.6126 billion allocation to fund operational expenditure and ensure the smooth running of state administration until the end of 2026.
State Finance Minister Datuk Seri Masidi Manjun, who is also Deputy Chief Minister II, said the additional allocation involved 53 expenditure heads as outlined in the 2026 Supplementary Expenditure Estimates during the tabling of the Supplementary Supply Bill 2026 at the Sabah State Legislative Assembly on Monday.
Masidi said the additional funds were necessary to support the state government's operations and commitments throughout the year.
The proposed allocation covers six major expenditure categories, comprising RM856 million or 53 per cent for statutory fund contributions, RM278 million or 17 per cent for operational expenditure, RM210 million or 13 per cent for investments, RM162 million or 10 per cent for administrative expenses, RM93 million or six per cent for state grants, and RM13 million or one per cent for special allocations.
He explained that most of the additional allocation under statutory contributions would not involve actual cash outflows, but would instead involve accounting adjustments through internal book transfers to comply with the Development Fund Act 1966 and the Financial Procedure Act 1957.
"Of the RM856 million, RM700 million (81.8 per cent) represents additional contributions to the Development Fund to reduce the deficit in the Development Account.
"Another RM90 million (10.5 per cent) is a contribution to the Statutory Trust Fund for the operation and maintenance of roads and bridges throughout Sabah, while RM66 million (7.7 per cent) will be channelled to the State Government Special Trust Fund for the construction and upgrading of basic infrastructure such as water supply, roads and utilities, as well as poverty eradication programmes including Rumah Mesra Sabah Maju Jaya and Sentuhan Kasih Rakyat (Syukur)," Daily Express cited him saying today.
Masidi said RM264.24 million was proposed under the General Treasury Services allocation, including RM210 million for equity investments, RM22 million for state grants to cover medical examination payments, assistance to non-Muslim religious bodies and national-type schools, as well as RM13 million for coastal cleaning works in Kota Kinabalu and Semporna.
The additional allocation would also support water supply and sewerage system maintenance, repairs arising from natural disasters, electrical wiring and maintenance works at government buildings, as well as other administrative and operational requirements.
The Chief Minister's Department and its agencies are proposed to receive an additional RM86 million to fund state scholarships and various education assistance programmes, including the Higher Education Institution Registration Cash Assistance (Budi), Sabah Domestic Higher Education Student Contribution (Sentosa), Sabah Student Flight Ticket Subsidy (Subfly) and Sabah School Activity Contribution (Sukses).
The Agriculture, Fisheries and Food Industry Ministry and its departments are proposed to receive an additional RM43 million for drainage system maintenance, river cleaning, flood mitigation works, as well as administrative and operational expenses.
The Rural Development Ministry and district offices statewide are proposed to receive an additional RM30.6 million, including RM24.5 million for allowances for Village Development and Security Committees (JKKK), with the balance allocated for other administrative and operational costs.
Masidi said the Youth and Sports, Entrepreneur Development and Creative Economy Ministry would receive an additional RM24 million to cover administrative and operational expenses, preparations and participation in the 22nd Malaysia Games (Sukma) in Selangor, as well as the organisation of the BIMP-EAGA Games 2026.
Other state ministries and departments would receive an additional RM77.4 million for various purposes, including grants to local authorities, the Sabah Skills Development Centre (SSTC), Sabah Creative Economy and Innovation Centre (Scenic), Sabah State Cultural Board, as well as Technical and Vocational Education and Training (TVET) programmes.
The supplementary allocation also includes assistance for disaster relief funds, welfare aid for orphans and low-income groups, as well as maintenance of elderly care homes.
Meanwhile, Masidi proposed an additional 2026 Development Estimate amounting to RM435.54 million involving 35 expenditure heads under nine ministries.
Of the amount, RM216.34 million or 49.7 per cent would be financed through the State Consolidated Fund, while RM219.20 million or 50.3 per cent would be funded through federal loans.
Masidi said one of the largest allocations would be directed towards water supply and sewerage projects, including major pipeline replacement projects and concession payments under the Sabah Water Department.
The funds would also support the development of sewerage billing systems and sewerage schemes under the Sabah Sewerage Services Department.
A second major allocation amounting to RM62.58 million was proposed for the Rural Development Ministry to finance small development projects, special allocations for state assemblymen, rural bridge projects, the Alternative Rural Water Supply Programme (Balba) and the Sabah People's Prosperity Housing Programme (RSRS).
The Finance Ministry would receive RM60 million to fund urgent basic infrastructure and public facility projects requiring immediate action.
The Chief Minister's Department would receive RM55 million to cover special development projects and land acquisition costs under the Sabah Land and Surveys Department.
The Youth and Sports, Entrepreneur Development and Creative Economy Ministry would receive RM15.2 million for the construction of a state sports complex, sports complex hostel, preliminary works for the Likas Stadium II development project and maintenance works at sports complexes throughout Sabah.
Other allocations include RM5.5 million for the Local Government and Housing Ministry to fund development projects under local authorities, RM2 million for the Community Development and People's Wellbeing Ministry for the Integrated Complex for Persons with Disabilities and Senior Citizens in Inanam, Kota Kinabalu, and RM1.56 million for the Agriculture, Fisheries and Food Industry Ministry for projects under the Sabah Veterinary Services Department. - July 21, 2026
