Ewon outlines Sabah’s direction to boost SME growth under state Budget 2026


KOTA KINABALU: A road map is being put in place to strengthen Sabah’s industrial parks, empower small businesses and modernise transport infrastructure under the state’s Budget 2026, says Deputy Chief Minister III Datuk Ewon Benedick.

He said that the allocation for RM105.67mil for supply and RM88.36mil for development under the state budget for next year highlights the state government’s recognition for industries, entrepreneurship and transport, which are critical for the development of Sabah’s economy.

“This integrated effort will put Sabah in a competitive position and also create more jobs and improve the well‑being of our people,” Ewon, who is Industrial Development, Entrepreneurship and Transportation Minister, said during the winding up of Budget 2026 debates Wednesday (Dec 17).

He said among the allocations was for RM43.53mil for infrastructure upgrades at Kota Kinabalu Industrial Park (KKIP), Lahad Datu Palm Oil Industrial Cluster (POIC Lahad Datu) and Sabah Oil and Gas Industrial Park (SOGIP) Sipitang.

A total of RM16.9mil for the development of shop lots and business premises across various districts under Sabah Economic Development Corporation and RM5mil for a new Entrepreneurship Coordination Programme has been allocated,” he said.

He said that RM18.19mil has been allocated for Sabah Railway modernisation, RM4.75mil for port and wharf improvements, and the state will obtain a federal grant of RM145.78mil, with RM37.4mil earmarked for industrial parks.

Overall, he said Sabah recorded RM7.54bil in manufacturing investments in the third quarter of 2025 and ranked sixth nationwide.

“We are targeting next year to include renewables, blue economy, biomass, and food processing, with international promotion through a unified branding strategy in collaboration with Mida (Malaysia Investment Development Authority),” he added.

Among other plans, he said the state would focus on the SME‑UP programme to aid SMEs with machinery and equipment, “Buy Sabah Products” campaign as well as hold Entrepreneur Carnival to expand markets.

Apart from that, Ewon said that they work with partnerships with Bataras, Petronas Dagangan, and Aeon to widen retail access.

“Training programme in halal certification, food safety programme under MeSTI, retort technology, and cost management planned for 2026,” he said, adding that digital transformation with entrepreneur database and monitoring platform were also in pipelines.

 

 

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