SCCC: State Budget 2026 shows strong fiscal management, boosts growth and livelihoods
by The Borneo Post · Borneo Post OnlineKOTA KINABALU (Dec 15): Sabah China Chamber of Commerce (SCCC) vice president Ir. Ts. Tan KJ said the 2026 Budget unveiled by the Sabah State Government last Friday, demonstrates strong fiscal discipline and forward-looking governance, providing a solid foundation for economic growth, infrastructure development, and community well-being.
Tan said the budget projects a surplus of RM28 million, with development expenditure as a priority.
Structural reforms to reduce operating costs further ensure long-term and inclusive growth. Key infrastructure projects include Phase 1B of the Pan Borneo Highway, upgrades to Kota Kinabalu and Tawau airports, expansion of Sepangar Bay Container Port, and statewide drainage and flood mitigation works.
These initiatives will enhance connectivity, reduce logistics costs, improve disaster resilience, and create new employment opportunities.
On the industrial and investment front, he said the budget supports manufacturing, industrial parks (KKIP, POIC, SOGIP), SME financing, and entrepreneurship innovation. By mid-2025, approved investments reached RM11.36 billion, a 76% increase compared to the previous year, strengthening business competitiveness and opening new economic opportunities.
“The blue economy is highlighted as a key growth engine, covering marine energy, green ports, aquaculture technology, and coastal protection. Through the Sabah Blue Economy Council, international research partnerships, and the Kudat Industrial Park Masterplan, Sabah is positioning itself as a hub for sustainable, high-value industries.
“The budget also emphasizes human capital and community well-being, increasing investment in education, vocational training, digital skills, and STEM programs. Rural development, food security, cultural preservation, and social support initiatives ensure that the benefits of growth are shared by all Sabahans,” he said.
Tan added the Sabah State Budget 2026 provides a clear roadmap under SMJ 2.0, reinforcing economic resilience, infrastructure capacity, investment attractiveness, and community welfare, while charting a sustainable path for Sabah’s future