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Sabah secures RM582m for grassroots projects, largest allocation since 2023

Sabah has received the nation's highest funding allocation for small-scale community projects this year, securing RM582 million out of a nationwide RM1.52 billion budget distributed across more than 8,000 initiatives.

LSN Malaysia · 11 September 2026

KOTA KINABALU — Sabah's Economy Minister announced the state has secured RM582 million in funding for grassroots development projects, marking the largest allocation the state has received for such initiatives since 2023. The figure represents a significant portion of the total RM1.52 billion distributed nationally for 8,069 small-scale projects designed to benefit local communities across the country.

The substantial investment underscores the federal government's commitment to supporting development initiatives at the grassroots level in Sabah. These small-scale projects typically address immediate community needs and contribute to economic activity in rural and urban areas alike, spanning infrastructure, social services, and livelihood programmes.

The allocation reflects ongoing efforts to balance development resources across Malaysia's regions, with Sabah emerging as a priority area for grassroots-level intervention. Officials emphasised that the funding would directly benefit residents through improved local services and economic opportunities.

The disbursement of funds for small-scale projects has become an increasingly important mechanism for addressing localised development gaps and ensuring equitable resource distribution throughout the country.