State government pensioners will receive RM1,000, state finance minister Masidi Manjun said when presenting a surplus budget for 2026.

Deputy chief minister Masidi Manjun, who is also state finance minister, said Sabah government pensioners will receive RM1,000, to be paid next year.
He announced the aid package, which will involve an expenditure of RM52.6 million, when tabling the state’s 2026 budget. The budget, amounting to RM6.402 billion, will have an estimated surplus of RM28 million, based on projected revenue of RM6.43 billion.
Masidi said the state government proposed an allocation of RM936.73 million to finance the salaries of Sabah civil servants next year, an increase of RM32.82 million or 3.6% over the original allocation this year.
“The increase is to accommodate annual salary increases and salary adjustments in line with the new civil service remuneration system, in addition to an increase in new appointments,” he said.
He said the Sabah government is also giving special attention to human resource development, with RM16.85 million to be distributed to all Sabah government agencies to ensure civil servants are trained and equipped with knowledge and skills relevant to current challenges.
Furthermore, he also said, an allocation of RM7.6 million was specifically provided to encourage a culture of lifelong learning.
Masidi said RM5.2 billion was allocated for operating expenditure and RM1.2 billion for development.
Following adjustments to supply and development expenditure starting next year, he said allocations to cover emolument expenses, recurring expenditure, and special expenditure will decrease by RM19.35 million, compared to the original estimate of RM6.421 billion for 2024.
State sales tax is expected to contribute RM2.6 billion while non-tax revenue is estimated at RM2.3 billion, most of which comes from petroleum royalties (RM1 billion) and non-revenue receipts (RM1.3 billion).
He said the state government is implementing several initiatives to increase revenue collection as a stable financial position was the main foundation of the Sabah government’s ability to cover expenditure. “With a sustainable, progressive, and resilient economy, the people’s quality of life and wellbeing will surely be assured,” he said.
Masidi said development expenditure is estimated at RM1.8 billion, comprising RM1.4 billion from the state and RM397 million in federal loans and federal repayments.
He said RM2.2 billion is proposed for recurring expenditure, including operating works, general administration, and human resources. An allocation of RM2 billion is for special expenditure, such as padi ploughing subsidy payments and water plant management services under outsourced contracts, including water purchases and privatisation-related water expenditure. - FMT

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