Sabah Finance Minister clarifies RM18.7 billion budget covers operating costs and development

At the Gabungan Rakyat Sabah (GRS) 2026 Convention, Sabah Finance Minister Datuk Seri Masisi Manjun detailed the composition of the RM18.7 billion budget for the state under Budget 2027. He emphasized that the sum is not earmarked exclusively for development, as a large fraction will cover operating costs for federal ministries and departments, including salaries for about 120,000 federal civil servants in Sabah. The Education and Health departments are the biggest recipients of these operating funds, together receiving more than half of the total allocation.

The development share, he said, will finance both new projects and the continuation of existing ones, yet the growing infrastructure demands may outpace the resources provided. Masisi urged the public to recognize the dual purpose of the budget rather than assuming it solely addresses development challenges such as water supply.