KOTA KINABALU: Sabah’s RM18.7bil allocation under Budget 2027 should not be mistaken for development funding alone, as a significant portion covers federal operating expenses, says Datuk Seri Masidi Manjun.
The Deputy Chief Minister II said this included salaries for about 120,000 federal civil servants, while the development portion also funded ongoing projects.
The Health and Education departments together account for more than half of the total allocation, he added.
“The RM18.7bil is not entirely for development. We must understand that the allocation includes the operating costs of federal ministries and government departments operating in Sabah.
“It is inaccurate to assume that the entire RM18.7bil is allocated to resolving water supply issues and other development needs in the state,” he told reporters on the sidelines of the Gabungan Rakyat Sabah (GRS) Convention 2026 in Kudat on Sunday (Oct 18).
Masidi said the development allocation also covered ongoing projects and should not be regarded entirely as fresh funding.
He added that existing allocations might not be sufficient to resolve all of Sabah’s longstanding problems.
On calls at the convention to uphold Sabah’s rights under the Malaysia Agreement 1963 (MA63), Masidi said public support for resolving the state’s special grant claim should be taken seriously.
He said the state government respected the judicial process, but an unfavourable ruling would not end its efforts to secure Sabah’s rights.
“For us in Sabah, we accept the court’s decision, but it is not the final avenue. There are other options and, as everyone knows, negotiations are still ongoing,” he said.
He was referring to the federal government’s appeal against a High Court decision compelling it to pay revenue returns owed to Sabah.
Masidi said the court proceedings concerned claims for 1974 to 2021, known as “the lost years”, which required extensive review and negotiations over data and calculations.
Claims from 2022 onwards should be prioritised as they were supported by clearer data that neither party disputed, he said.
He added that the state government was prepared to continue negotiations on matters requiring further assessment and consider alternative payment methods if the amount proved too large.
