The Sabah China Chamber of Commerce (SCCC) vice president, Ir. Ts. Tan KJ, expressed that the recently unveiled 2026 Budget by the Sabah State Government showcases strong fiscal discipline and forward-looking governance. This budget lays a solid foundation for economic growth, infrastructure development, and community well-being.

According to Tan, the budget anticipates a surplus of RM28 million, prioritizing development expenditure. This approach, combined with structural reforms aimed at reducing operating costs, is expected to ensure long-term and inclusive growth.

Key Infrastructure Projects and Economic Initiatives

Notable infrastructure projects highlighted include Phase 1B of the Pan Borneo Highway, improvements to Kota Kinabalu and Tawau airports, the expansion of Sepangar Bay Container Port, and comprehensive statewide drainage and flood mitigation efforts. These initiatives are designed to enhance connectivity, lower logistics costs, boost disaster resilience, and generate new job opportunities.

On the industrial and investment side, the budget aims to bolster manufacturing, support industrial parks (KKIP, POIC, SOGIP), and promote SME financing and entrepreneurship innovation. As of mid-2025, approved investments have reached RM11.36 billion, marking a 76% increase compared to the previous year, thereby enhancing business competitiveness and unlocking new economic opportunities.

Focus on Sustainable Development and Community Well-Being

Tan pointed out that the blue economy is emphasized as a crucial growth engine, incorporating areas such as marine energy, green ports, aquaculture technology, and coastal protection. Through the Sabah Blue Economy Council, international research collaborations, and the Kudat Industrial Park Masterplan, Sabah is positioning itself as a hub for sustainable, high-value industries.

The budget also places significant importance on human capital and community well-being, with increased investments in education, vocational training, digital skills, and STEM programs. Initiatives for rural development, food security, cultural preservation, and social support are designed to ensure that the advantages of growth are equitably shared among all Sabahans.

In summary, Tan emphasized that the Sabah State Budget 2026 outlines a clear roadmap under SMJ 2.0, enhancing economic resilience, infrastructure capacity, investment attractiveness, and community welfare while paving a sustainable path for Sabah’s future.