Sabah Government's Continued Dependence on Federal Loans for Development Projects
The Sabah Government relies on Federal loans to finance large-scale development projects, totaling RM3.2 billion in maturity. Annual repayments are RM220 million, allowing ongoing project implementation without financial strain.

The Sabah Government continues to depend on Federal loans for significant infrastructure projects, impacting public welfare and economic development. Current Federal loans due for repayment total RM3.2 billion, with annual repayments at RM220 million, facilitating development through interest-free loans with long repayment periods.
Measures to reduce reliance on Federal funding include optimizing revenue collection and enhancing water utility management to decrease non-revenue water losses. As global oil prices rise, a Special Committee has been established to evaluate the situation and propose necessary subsidies.
The State's taxation policy will see the SST rate for scrap metal decrease to 5% effective April 1, 2026. Development allocations are distributed inclusively across all constituencies, ensuring support regardless of political affiliations.



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