Allocations to KPKP and Agencies to Boost Sector Growth and Investment in Sabah

12 December 2025

KOTA KINABALU: The Sabah Government has allocated RM249.19 million to develop the Industrial Sector in 2026, in line with its aspiration to revitalise sector growth, attract investment, and boost trade activities within the state.

During the tabling of Sabah’s Budget 2026 at the state legislative assembly today, Datuk Masidi Manjun, the finance minister, who is also the deputy Chief minister II announced that RM194.04 million of these sums directed to the Ministry of Industry, Entrepreneur and Transport (KPKP), along with its departments and agencies, is to facilitate industrial growth and promotion.

He explained that the development of Small and Medium Enterprises (SMEs) remains a key priority, serving as a support industry and a catalyst for manufacturing sector expansion. Under the 13th Malaysia Plan (RMKe-13), the Sabah Government, through KPKP, will launch the State Entrepreneurship Programme with a RM5 million allocation to enhance the competitiveness of Sabah’s SMEs at the national and international levels. Additionally, RM16.86 million has been set aside to enable local entrepreneurs to participate in domestic and international expos, thereby expanding their markets abroad.

Further allocations include RM18.55 million for programmes across various agencies and ministries, including the Ministry of Finance, the Ministry of Education, Science, Technology and Innovation, and the Ministry of Rural Development (KPLB). These funds aim to continue supporting local entrepreneurship development initiatives in Sabah. A separate RM15 million has been allocated for the SME-UP Assistance Programme to increase capacity and productivity among SMEs.

Masidi also highlighted that RM1.5 million has been allocated for the Rural Product Empowerment Programme and District Skills Development by KPLB, while RM2.05 million will fund high-impact initiatives such as Sabah Sandbox Accelerate 2026, Creative Incubator 2026, and Pitchborneo, under the Ministry of Education, Science, Technology and Innovation. These programmes are designed to drive innovation, digitalisation, and creative industry growth, with direct benefits to the economy and local communities.

The budget also includes RM500.1 million under RMKe-13 to implement 123 programmes and projects, comprising 34 ongoing projects and 89 new initiatives. A portion of this funding will be channelled to agencies such as the Sabah Economic Development Corporation (SEDCO), Kota Kinabalu Industrial Park (KKIP) Sdn. Bhd., POIC Sabah Sdn. Bhd., and Sabah Oil & Gas Development Corporation (SOGDC) Sdn. Bhd., to support their development activities.

Infrastructure development remains a key focus, with RM43.53 million allocated for upgrading industrial parks’ utilities and facilities at KKIP, POIC Lahad Datu, and SOGIP, aiming to create a more conducive environment for investment. Meanwhile, SEDCO has received RM16.90 million to continue existing projects, including the construction of shop houses in Kalabakan and Tungku, and hotel developments in Pulau Bum-Bum Semporna, Weston, and Kg Padas Damit, Beaufort.

In the transportation sector, the Sabah Railway Department (JKNS) has been allocated RM66.59 million for next year’s operating and development expenses. Major projects include slope repairs along the Beaufort-Tenom route valued at RM4 million. The department will also construct pedestrian bridges at Petagas, upgrade public level crossings, and procure a locomotive and two Diesel Multiple Units (DMUs) valued at RM5.80 million to enhance rail services.

The Sabah Ports and Docks Department (JPDS) will receive RM27.64 million to strengthen port infrastructure, with RMKe-13 approved funding of RM32.23 million for 23 projects. These include hydrographic surveys at Wallace Bay, the installation of a Shipping Traffic Monitoring System in Tawau, upgrades to the Menumbok Ferry Terminal, and new jetty constructions at Karakit and inter-island ferry terminals.

Masidi said that JPDS will also prioritise routine maintenance of port facilities to ensure safety and operational efficiency, vital for maintaining Sabah’s maritime competitiveness and supporting the state’s economic growth.