Sabah Budget 2026 Charts Path to Boost Industrial Parks, SMEs and Transport Sector

· Latest News
Section image

Kota Kinabalu (Dec 19) - Sabah is setting out a structured plan to enhance its industrial parks, strengthen small and medium enterprises and upgrade transport infrastructure under the 2026 State Budget, according to Deputy Chief Minister III Datuk Ewon Benedick.

Ewon said the allocations of RM105.67 million for operating expenditure and RM88.36 million for development expenditure next year reflect the state government’s acknowledgment of the importance of industry, entrepreneurship and transportation in driving Sabah’s economic growth.

Speaking during the budget debate yesterday, he said the combined initiatives are aimed at improving Sabah’s competitiveness, creating employment opportunities and raising the quality of life for the people.

In his capacity as Minister of Industrial Development, Entrepreneurship and Transportation, Ewon noted that RM43.53 million has been set aside for infrastructure improvements at key industrial sites, namely the Kota Kinabalu Industrial Park, the Lahad Datu Palm Oil Industrial Cluster and the Sabah Oil and Gas Industrial Park in Sipitang.

He added that RM16.9 million has been allocated for the construction and development of shoplots and business premises across several districts through the Sabah Economic Development Corporation, while RM5 million will fund a new Entrepreneurship Coordination Programme.

Other major allocations include RM18.19 million for the modernisation of the Sabah Railway and RM4.75 million for upgrading ports and wharves.

Ewon also said Sabah is set to receive a federal grant amounting to RM145.78 million, of which RM37.4 million is designated for the development of industrial parks.

Overall, he revealed that Sabah recorded RM7.54 billion in manufacturing investments in the third quarter of 2025, placing the state sixth nationwide.

Looking ahead, he said the state is targeting growth in emerging sectors next year, including renewable energy, the blue economy, biomass and food processing.