Masidi: RM18.7b Sabah allocation covers civil service salaries, not just projects

KUDAT, Oct 18 — The RM18.7 billion allocated to Sabah in Budget 2027 is not exclusively designated for development projects, but also encompasses the operational expenses of federal ministries and departments within the state, according to Sabah Finance Minister Datuk Seri Masidi Manjun. A significant portion of the allocation will be allocated to cover operating expenses, including salaries for approximately 120,000 federal civil servants working in Sabah.

Masidi stated that the Education and Health departments are the primary beneficiaries of these operating funds, collectively accounting for over half of the RM18.7 billion allocation. He emphasized that the RM18.7 billion is not solely intended for addressing water supply issues and other development needs in the state. "It would be incorrect to assume that the entire RM18.7 billion allocation is earmarked for infrastructure development," he told reporters during a press conference following the Gabungan Rakyat Sabah (GRS) 2026 Convention in Kudat.

According to Masidi, the budget's development allocation includes provisions for both new initiatives and the continuation of ongoing projects. He noted that Sabah's development requirements are continuously increasing, and the existing allocations may not be sufficient to resolve the state's longstanding infrastructure challenges.