Malaysia

Sabah tables RM1.186 billion supplementary budget, focuses on roads, water and welfare

The Supplementary Supply Bill covers 53 expenditure heads

Updated 1 year ago · Published on 07 Jul 2025 3:27PM

Sabah tables RM1.186 billion supplementary budget, focuses on roads, water and welfare
Supplementary allocations turn projected surplus into deficit unless new revenue offsets RM1.6 billion in extra spending - July 7, 2025

by Jason Santos

THE Sabah government has tabled a RM1.186 billion supplementary budget for 2025, with major allocations aimed at improving water supply, road infrastructure, and community welfare programmes, as public demands mount over longstanding service deficiencies.

Finance Minister Datuk Seri Masidi Manjun presented the Supplementary Supply Bill and Additional Development Estimates in the State Legislative Assembly on Monday, citing the need to strengthen government operations amid rising expectations.

“These allocations reflect our priorities, but they are also a reminder of the scale of the challenge,” Masidi said. “Out of the total allocation, RM523.5 million will go towards water and roads. These are issues frequently raised by the public, and at times politicised — but the concerns are real, and the state is responding.”

From Surplus to Deficit: RM1.6 Billion in Extra Spending

The additional RM1.186 billion sought under the Supplementary Supply Bill, coupled with RM416.5 million proposed under Additional Development Estimates, brings total revised spending for 2025 beyond the original RM6.421 billion budget — shifting what was a projected surplus into a potential RM1.58 billion deficit unless new revenue is secured.

The Supplementary Supply Bill covers 53 expenditure heads. Over RM600 million is designated for statutory fund contributions, including RM250 million to reduce the Development Fund deficit and RM150 million for the Road and Bridge Maintenance Trust Fund.

People-Focused Programmes Receive Major Funding

A sum of RM200 million is allocated to the Special State Government Trust Fund to finance various social and education initiatives, including SYUKUR (People’s Wellbeing Touchpoint Programme), BUDI (cash aid for higher education registration), SENTOSA (state assistance to tertiary students), SUBFLY (flight subsidies for students), and SUKSES (support for school activities).

This fund will also channel resources into infrastructure projects related to roads, water and utility services.

An additional RM185.5 million under General Treasury Services is set aside for equity investments, upgrades to water treatment systems and pipes, waste management in cities, and NGO support. The Tawau International Cultural Centre is among the projects slated to benefit.

Infrastructure and Services Ministries Among Top Recipients

The Ministry of Works and its departments will receive RM147.6 million for a range of essential works including pump house maintenance, disaster-related repairs, electrical installations, enforcement activities and administrative operations.

The Chief Minister’s Department is allocated RM94.4 million for state scholarship schemes, mosque and surau maintenance, and core operational costs.

Other notable allocations include RM55.7 million for the Ministry of Agriculture, Fisheries and Food Industry; RM25.9 million for the Ministry of Local Government and Housing to settle advance accounts and cover running expenses; and RM16.2 million for the Ministry of Community Development and People’s Wellbeing, which includes RM4.5 million for dialysis machine support and RM11.1 million in aid to disaster victims, the elderly, orphans, and special needs children.

A further RM58 million will be distributed among various state agencies and ministries, covering expenses such as village committee allowances and hosting the 11th SAGA Games in Tawau.

RM416.5 Million Sought in Additional Development Estimates

The government is also seeking RM416.5 million under Additional Development Estimates, spread across 83 expenditure areas in 10 ministries.

The Ministry of Works again emerges as the primary recipient with RM254.9 million earmarked for rural and urban road upgrades, water supply expansion, sewerage improvements, and railway development — much of it funded by federal loans.

The Ministry of Rural Development is to receive RM82.5 million for poverty eradication programmes, small-scale rural infrastructure, and basic utility provision.

The Chief Minister’s Department is allocated RM38.5 million for Native Customary Rights land surveys, mosque construction, religious schools and waste system upgrades. RM1 million is also set aside for the Sabah Land Development Board for loan repayments.

Agriculture, Industry, and Community Wellbeing Also Targeted

The Ministry of Agriculture will receive RM17.4 million, including RM3.5 million for the Kinarut Veterinary Diagnostic Laboratory. RM7.7 million goes to the Ministry of Industrial Development and Entrepreneurship to support vendor sites and infrastructure within the Sipitang Oil and Gas Industrial Park.

The Ministry of Youth and Sports is allocated RM4.84 million for the construction and upgrading of sports complexes, while the **Ministry of Community Development and People’s Wellbeing will receive RM4.6 million to improve facilities for the elderly and special needs communities.

The Ministry of Tourism, Culture and Environment is granted RM2.9 million for heritage and tourism asset improvements, and the Ministry of Local Government and Housing receives RM2.3 million for landscaping and infrastructure for local authorities.

Infrastructure Gap Remains a Long-Term Challenge

Masidi acknowledged that while RM523.5 million from this supplementary round targets roads and water supply, the annual requirement to comprehensively resolve Sabah’s infrastructure issues exceeds RM2 billion.

“Voters expect better services, and rightly so. These additional allocations are steps in the right direction, but the gap remains wide,” he said.

Debate on the Supplementary Supply Bill and the Additional Development Estimates is expected to continue in the State Assembly over the coming days. - July 7, 2025

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