KUDAT, Oct 18 — The RM18.7 billion allocated to Sabah under Budget 2027 is not solely for development projects, but also covers the operating costs of federal ministries and departments in the state, Sabah Finance Minister Datuk Seri Masidi Manjun said.
He said a large portion of the allocation will cover operating expenses, including salaries for about 120,000 federal civil servants working in Sabah.
Masidi said the Education and Health departments are the largest recipients of operating funds, together accounting for more than half of the RM18.7 billion allocation.
“The RM18.7 billion is not entirely for development. We need to understand that the allocation also covers the operating costs of federal ministries and departments operating in Sabah.
“So, it would be inaccurate to assume that the entire RM18.7 billion allocation is intended to address water supply problems and other development needs in the state,” he told reporters on the sidelines of the Gabungan Rakyat Sabah (GRS) 2026 Convention here today.
According to him, the budget’s development allocation includes funding for both new projects and the continuation of existing projects currently under way.
He added that Sabah’s development needs continue to grow each year, and existing allocations may not be enough to resolve the state’s long-standing infrastructure problems. — Bernama