KUCHING – Sarawak Premier Datuk Patinggi Tan Sri (Dr) Abang Haji Johari Tun Abang Haji Openg has presented the Sarawak Budget 2026, amounting to RM12.9 billion, at the opening of the Sarawak State Legislative Assembly sitting.
The Premier, who also serves as Minister of Finance and New Economy, outlined that RM5.6 billion will be channelled into operating expenditure, while RM7.3 billion has been earmarked for development expenditure.
Of the operating allocation, RM1.4 billion or 25 percent will cover staff emoluments, RM2.2 billion or 38 percent will go towards supplies and services, and RM1.8 billion or 32 percent will finance grants and fixed payments.
These include operating grants for statutory bodies and local authorities, debt repayments, gratuities, pensions, scholarships, and welfare assistance. Additionally, RM99 million has been set aside for asset acquisition and RM150 million for other operating costs.
The Premier explained that the RM7.3 billion development allocation will be deposited into the state’s Development Fund Account, raising the total savings in the account to RM9.3 billion. This fund is intended to support long-term projects and strengthen Sarawak’s fiscal resilience.
Revenue for 2026 is projected at RM13.1 billion, slightly lower than the 2025 forecast due to global commodity market volatility and external economic pressures. Despite this, the budget is expected to generate a surplus of RM144 million, with expenditure kept at RM12.9 billion.
Tax revenue is estimated at RM5.8 billion, representing 44 percent of total income. Of this, RM4.6 billion will come from State Sales Tax, with RM3.5 billion derived from crude oil, liquefied natural gas, and petroleum products.
Other contributions include RM885 million from crude palm oil and palm kernel oil, RM75 million from lottery, RM88 million from aluminium products, RM32 million from ferro alloys, RM26 million from timber products, and RM13 million from polysilicon.
Additional sources include RM650 million from raw water royalty, RM226 million from forest royalty and timber premium, and RM301 million from mining royalty, land rent, and other charges.
Non-tax revenue is projected at RM6.3 billion, or 49 percent of total income. This includes RM2.6 billion from cash compensation in lieu of oil and gas rights, RM2.3 billion from dividend income, RM811 million from interest, RM350 million from land premium, RM120 million from compensation in lieu of import and excise duties on petroleum products, and RM150 million from licences, service fees, permits, and rentals.
Non-revenue receipts are expected to contribute RM29 million, mainly from damages, compounds, fees, and penalties. Federal grants and refunds are projected at RM899 million, with RM600 million coming from interim payments of Special Grants.
The Premier emphasised that the budget reflects Sarawak’s commitment to balancing fiscal discipline with development priorities, ensuring sustainable growth while preparing for global economic uncertainties.
