THE State’s total revenue for 2026 has been projected at RM13.1 billion, a slight decline from the 2025 forecast due to continued volatility in global commodity markets.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said external economic pressures, particularly in the oil and gas sector, continued to influence the state’s overall revenue outlook.
“As we navigate global economic uncertainty, we are accelerating efforts to diversify income streams and reduce dependence on natural resources.
“Our strategy will focus on developing strategic sectors, driving digital transformation, and embracing sustainable resource management,” he said when tabling the 2026 Budget.
For 2026, Abang Johari said tax revenue is expected to contribute RM5.8 billion, or 44 per cent of total revenue.
State sales tax is estimated at RM4.6 billion, driven by RM3.5 billion from petroleum products and RM885 million from crude palm oil and palm kernel oil.
Other components of state sales tax include 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 tax revenue includes RM650 million from raw water royalty, RM226 million from forest royalty and timber premium, and RM301 million from mining royalties, land rents and other charges.
Non-tax revenue is estimated at RM6.3 billion, comprising RM2.6 billion from cash compensation in lieu of oil and gas rights and RM2.3 billion from dividends.
Other non-tax sources include RM811 million in interest income, RM350 million from land premium, RM120 million from import and excise duty compensation on petroleum products, and RM150 million from licences, service fees, permits and rentals.
Non-revenue receipts are expected to reach RM29 million, mainly from liquidated damages, compounds, fees and penalties.
Federal grants and reimbursements are projected at RM899 million, including an interim Special Grant payment of RM600 million.
Abang Johari said Sarawak would continue developing strategic sectors, accelerating digital transformation and adopting sustainable resource management to reinforce the state’s financial resilience.
“These initiatives are not only aimed at unlocking new pathways for economic growth, but also at enhancing the well-being of our people and securing long-term financial sustainability for the state,” he said.
