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Sabah to receive RM18.7b federal allocation under Budget 2027

The federal government has increased its budget allocation for Sabah to RM18.7 billion in 2027, up from RM17.6 billion previously, aimed at accelerating infrastructure development across the state.

LSN Malaysia · 18 October 2026

Sabah to receive RM18.7b federal allocation under Budget 2027

KUDAT — Sabah will benefit from a higher federal allocation of RM18.7 billion under Budget 2027, representing a significant increase from the previous year's RM17.6 billion, according to state officials. The additional funding is intended to support critical development initiatives across the state, with emphasis placed on addressing longstanding challenges in water supply, electricity and road infrastructure.

The enhanced budget allocation underscores the federal government's commitment to infrastructure modernization in Sabah, one of Malaysia's largest states by area. The funds are expected to tackle perennial issues affecting both urban and rural communities, particularly in remote regions where service delivery remains constrained.

State authorities have indicated that the increased allocation will enable more comprehensive planning and execution of development projects, potentially accelerating timelines for infrastructure upgrades that have long been on the agenda. The commitment reflects broader national efforts to ensure equitable development across Malaysia's regions and improve quality of life for residents.

The budget allocation comes as Sabah continues to seek greater investment in its economic infrastructure to support growth and attract business opportunities. Officials are expected to detail project priorities and implementation schedules in the coming weeks as planning commences under the new budget framework.

Photo: The Sabah State Legislative Assembly building (Dewan Undangan Negeri Sabah), Kota Kinabalu, January 2014. CEphoto, Uwe Aranas via Wikimedia Commons (CC BY-SA 3.0).