SABAH is currently powered by a budget that represents only a small fraction of its true worth. While the formal 2026 Budget stands at RM6.43 billion, the real engine of the state economy lies in the 40% Revenue Entitlement affirmed through the High Court order of 17 October 2025.
Federal collections derived from Sabah are widely cited at about RM50 billion annually. Leaders such as Datuk Seri Panglima Dr. Jeffrey Kitingan has publicly highlighted this figure, reflecting contributions from petroleum, palm oil, Customs duties, and Inland Revenue Board taxation which bypass the state and directly into the federal coffer.
Applying the 40% entitlement and accounting for a 10% collection cost yields approximately RM18 billion for Sabah. Combined with the state’s existing RM6.43 billion in internal revenue, total fiscal capacity reaches about RM24 billion per year.
RM24 billion represents almost four times (4x) the current budget.
This scale of funding shifts Sabah from incremental planning to decisive execution. The estimated cost of completing the Sabah section of the Pan Borneo Highway stands at roughly RM26.6 billion. With strengthened annual capacity, the state gains the ability to accelerate major infrastructure delivery and coordinate multiple phases concurrently.
Education stands at the heart of this transformation. A strengthened fiscal platform allows the construction and upgrading of primary and secondary schools across rural and urban districts, ensuring safe classrooms, modern facilities, and adequate teacher support. At the tertiary level, several state-owned campuses can be established and funded with universal scholarships so that every beloved child in Sabah gains access to higher learning regardless of their family background. The future of the next generation is secured through this financial autonomy.
Water security and electricity stability also become achievable national priorities.
Replacing aging pipes, expanding treatment capacity, modernising substations, and strengthening transmission networks deliver reliable water supply and consistent power to homes, schools, hospitals, and businesses throughout the state. Beyond large-scale projects, this funding removes the daily frustrations of modern life. It provides the capacity to implement free public parking in major urban centres, finally ending the "cat and mouse" game between drivers and enforcement officers and removing the stress of constant fines.
The High Court set a 180-day implementation timeline ending on 15 April 2026. Finalising the calculation formula within this period secures clarity and institutional certainty for all Sabahans.
A fourfold expansion of Sabah’s budget strengthens roads, builds schools, secures water, stabilises electricity, and uplifts districts across the state. The responsibility to translate this entitlement into reality now rests with the people.