RM1.2 billion subsidy to resolve Sabah’s power supply issues under Budget 2026

The RM1.2 billion subsidy for stabilizing Sabah’s power supply shows the federal government’s strong commitment to solving the state’s ongoing electricity issues, said Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali. Announced by Prime Minister Datuk Seri Anwar Ibrahim in Budget 2026, the allocation aims to tackle the long-standing issue in collaboration with the Sabah government.

The budget includes RM880 million for tariff support, fuel, and solar subsidies, up from RM700 million in 2025. An additional RM189.8 million will go to rural electricity projects, while RM128 million is allocated for electricity connection projects. Armizan noted that this funding reflects the federal government’s dedication to resolving Sabah’s power supply instability, even though regulatory control was transferred to the state government in 2024.

He also highlighted RM1 billion allocated for water supply projects, including pipe installations and upgrades in Tawau, Kota Kinabalu, Penampang, and Putatan. Separately, Armizan welcomed the RM100 million investment in 10Star Cinemas, which will bring new cinemas to rural areas, with two more set to open in 2026 and 2027.

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