Agriculture, Fisheries, and Rural Development drive socio-economic growth

14 December 2025

KOTA KINABALU: The government’s continued commitment to strengthening key sectors such as agriculture, fisheries, and rural development to drive socio-economic growth in the state, was emphasised in Sabah’s Budget 2026 presented by Minister of Finance who is also Deputy Chief Minister II Datuk Masidi Manjun at the State Legislative Assembly on Friday.

In his speech, Datuk Masidi highlighted that the Agriculture, Fisheries, and Food Industry Sector remain the backbone of Sabah’s development, not only providing vital food sources but also contributing significantly to income and employment, especially in rural areas. “This sector will continue to be a key driver of Sabah’s socio-economic progress,” he stated.

The Minister announced that the government has allocated RM559.85 million for 2026 to support these sectors, with RM75.75 million set aside for operational assistance to fishermen, farmers, and livestock breeders. “This allocation underscores our dedication to empowering rural communities and ensuring food security,” he added.

For the development of the crop subsector, the Sabah Department of Agriculture has been allocated RM171.36 million, including RM62.40 million for development projects. A total of 108 projects, including 107 new initiatives and one continuation, have been approved under the 13th Malaysia Plan, focusing on research, human capital training, crop development, and agrotourism.

Among the key projects for the upcoming year, Masidi mentioned the development of 15 Permanent Food Production Parks covering 595 hectares, with a target output of nearly 1,500 tonnes of vegetables and fruits. Other efforts include developing new crop varieties, environmentally friendly planting technologies, and soil and water conservation.

The government will also establish the Sabah Agricultural Biotechnology Centre (SABTeC) at the Agriculture Research Centre in Tuaran, equipped with state-of-the-art laboratories for biotechnology research. “This centre will support high-impact research aimed at developing disease-resistant and high-yielding crop varieties, as well as advancing DNA marker technology for plant identification,” Masidi said.

In rural development, the Village Development Corporation (KPD) will implement 21 projects with a total allocation of RM21.07 million, including RM14.13 million for operations and RM6.94 million for new initiatives. The Contract Planting Programme will remain a priority, focusing on youth involvement and poultry farming, which is expected to boost local agricultural output and income.

The Minister also announced upcoming projects such as the construction of food processing plants in Keningau and the Honey Bee Supplementary Food Project, with a combined budget of RM1.55 million, aimed at increasing yields and supporting local farmers.

To promote local produce, KPD will establish 10 collection centres across districts including Beaufort, Keningau, and Kota Marudu, with RM1 million allocated to ensure their effective operation.

In the rubber sector, the Sabah Rubber Industry Board (LIGS) will receive a funding ceiling of RM50.38 million for 46 projects under RMKe-13. For 2026, RM17.4 million has been allocated for operational and developmental activities, including upgrading roads and building storage facilities. The rubber smallholder incentive programme will also continue with a RM20 million allocation next year.

The re-established Sabah Paddy and Rice Board (LPBS) aims to make Sabah self-sufficient in rice by 2030, targeting a 60% Self-Sufficiency Ratio. RM3 million has been allocated for operational expenses, along with RM15 million for modern harvesting and planting equipment. “Our goal is to revitalise abandoned paddy fields and improve infrastructure to make Sabah’s rice industry more sustainable and profitable,” said Datuk Masidi.

He also highlighted that the fisheries sector contributed 14.7% to Sabah’s agricultural GDP in 2023, with a trade surplus of RM494.58 million. The sector will receive RM48.26 million next year for 33 new projects, including conservation, enforcement, research, and biosecurity programmes.

The Sabah Department of Fisheries will also implement 28 projects under the Sabah Fisheries and Fishermen Development Corporation (Ko-Nelayan), with a total allocation of RM108.45 million, focusing on empowering fishing communities and strengthening aquaculture.

In livestock, the Department of Veterinary Services (DVS) will continue high-impact projects to increase productivity and food security, with RM122.27 million allocated for 100 projects, including new initiatives and ongoing programmes.

As for the Department of Irrigation and Drainage (JPS), it will receive RM157.13 million for various infrastructure upgrades, flood mitigation, and river conservation projects, with 46 projects planned to improve Sabah’s water management and flood control systems.