Budget 2026: Record RM6.9bil allocation for Sabah reflects govt commitment in fixing infrastructure woes, says state DAP


Deputy Plantation and Commodities Minister Datuk Chan Foong Hin.

KOTA KINABALU: Budget 2026 marks a major step forward in addressing the long-standing issues related to urgent infrastructure needs for the state, says Sabah DAP.

Its vice-chairman Datuk Chan Foong Hin said Budget 2026 reflected the Federal Government’s commitment towards Sabah’s development by allocating a record RM6.9bil.

“Initiatives under the Madani Government are aimed at closing infrastructure gaps and improving the quality of life across Sabah.

“It is a meaningful step forward for Sabah’s long-overdue infrastructure needs,” he said in fully supporting the federal budget which reflects Putrajaya’s commitment to Malaysia Agreement 1963 and the people of the state.

“The allocations for water, electricity, roads, and education will directly improve lives, especially in rural communities. We welcome this progress and will continue to push for transparent implementation,” said Chan who is Kota Kinabalu MP.

He said that there were 10 key initiatives under the budget and this includes the RM6.9bil development allocation and RM600mil in Special Grants under MA63.

Chan said there was allocation of RM1bil for water pipe installations and replacements in Tawau, Kota Kinabalu, Penampang, and Putatan as well as RM1.2bil for electricity supply continuity.

Other initiatives under the budget include an allocation of RM1.67bil for the Pan-Borneo Highway development project for Phase 1 to be completed by November 2026 and Phase 2 by mid-2029.

Another RM39mil was allocated for flood mitigation and school rehabilitation in Inanam as well as RM220mil for the rebuilding of the Gaya Teachers Training College which was damaged by a landslide.

Chan also noted RM2.3bil was allocated for the Kota Kinabalu and Tawau airport upgrades while for health care RM80mil has been allocated for rebranding Queen Elizabeth Hospital 2 as the Sabah Heart Centre and setting up of new clinics in Nabawan.

Budget 2026 also allocated RM2bil to upgrade 520 schools in Sabah and Sarawak including building new schools in Tawau, Tuaran, and Kota Kinabalu, border infrastructure development of a new 28km road from Kalabakan (Sabah) to Simanggaris, Indonesia.

Funds have also been allocated to replace the Tun Sharifah Rodziah offshore platform with a new Multi-Purpose Command Platform by June 2026 in Eastern Sabah.

“The allocations are promising, the real test lies in delivery. We urge all stakeholders to ensure these projects are implemented efficiently and transparently,” Chan said.

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