Sabah’s RM18.7 Billion Budget Allocation Aims to Address Poverty in Key Districts

Kota Kinabalu:The RM18.7 billion allocation for Sabah under Budget 2027 is intended to address critical issues facing impoverished districts, focusing on essential services such as water supply, electricity, and roads.

According to BERNAMA News Agency, Datuk Seri Azizah Mohd Dun, chairman of the Institute for Development Studies (IDS) (Sabah), emphasized the importance of a targeted approach to effectively utilize the increased allocation, which rose by RM1.1 billion from 2026. She highlighted that eight out of the ten districts with the highest hardcore poverty rates in Malaysia are located in Sabah, necessitating focused assistance.

Azizah pointed out that merely distributing the funds from top to bottom would not solve the poverty problems, as the issues varied even among poor communities. She stressed the need for targeted intervention based on the specific needs and circumstances of each district.

Based on the 2022 Household Income and Expenditure Survey Report by the Department of Statistics Malaysia, districts such as Tongod, Beluran, and Pitas are among those with the highest poverty rates. Azizah noted that improving basic amenities would enhance local economic activities and help rural residents access markets more efficiently.

She also warned that delays due to bureaucratic processes could increase development costs and prolong hardships. To mitigate this, IDS has proposed allocating a portion of the RM1.5 billion Interim Special Grant under the Malaysia Agreement 1963 as a Special Community Development Fund for impoverished districts.

The IDS is also conducting a detailed poverty mapping study to better understand the challenges faced by poor households in districts like Pitas and Kota Marudu. This study aims to be completed next year.

In addition, Datuk Dayang Khatijah Bachtiyal, president of the Sabah Bumiputera Women's Small and Medium Industries Association, highlighted the need for the benefits of Budget 2027 to reach women entrepreneurs in rural areas. She urged the government to organize more empowerment programs and support NGOs to enhance opportunities for women in remote locations.