By Amanda L
KUCHING, Nov 24: Sarawak is projecting revenue of RM13.1 billion for 2026, a slight decline from the latest 2025 estimate, as persistent volatility in global crude oil prices continues to affect the State’s fiscal performance.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the State’s revenue remains heavily influenced by global commodity trends, with petroleum products still accounting for the largest share of income.
“For 2026, tax revenue is expected to generate RM5.8 billion or 44 per cent of total revenue,” he said when delivering the Sarawak Budget 2026 at the Sarawak Legislative Assembly (DUS) sitting today.
He said State sales tax is projected at RM4.6 billion, mainly driven by RM3.5 billion from crude oil, liquefied natural gas and other petroleum products. This is supplemented by RM885 million from crude palm oil and crude palm kernel oil, RM88 million from aluminium products, RM75 million from lottery, RM32 million from ferro-alloys, RM26 million from timber products and RM13 million from polysilicon.
Additional revenue is expected from raw water royalty amounting to RM650 million, forest royalty and timber premium totalling RM226 million, as well as RM301 million from mining royalties, land rents and related sources.
Non-tax revenue is projected at RM6.3 billion, representing 49 per cent of total revenue. This includes RM2.6 billion from cash compensation in lieu of oil and gas rights, RM2.3 billion from dividends, RM811 million from interest income, RM350 million from land premium, RM150 million from licences, service fees, permits and rentals, and RM120 million from cash compensation in lieu of import and excise duties on petroleum products.
Non-revenue receipts are estimated at RM29 million from liquidated damages, compounds, fees and penalties, while federal grants and reimbursements are expected to total RM899 million, including an interim Special Grant payment of RM600 million.
“As we navigate global economic uncertainty, we are accelerating efforts to diversify income streams and reduce dependence on natural resources,” Abang Johari said.
He said the State will continue focusing on strengthening strategic sectors, advancing digital transformation and promoting sustainable resource management to build long-term fiscal resilience and support inclusive economic growth. — DayakDaily
