He said the two fiscal commitments represented GRS’s long-term economic strategy and were aimed at strengthening the state’s financial resilience and ensuring that future generations inherit a more stable Sabah.
“We have already seen a jump in revenue of RM3.25 billion between 2020 and 2024 – a 90.5% increase – which gives us the confidence to set higher targets.
“If you don’t have sufficient income, you cannot solve problems. That is why strengthening revenue is key,” he said at a press conference here.
Armizan said Sabah’s revenue growth under GRS provided a strong foundation for these pledges, rising from RM3.59 billion in 2020 to RM6.84 billion in 2024.
He said the manifesto would build on this momentum for the next five years, supported by the creation of the Sabah Sovereign Wealth Fund, to be established through a state enactment.
The fund’s initial capital would come from a portion of Sabah’s state reserves, which grew from RM2.9 billion in 2020 to RM8.6 billion as of September 2024 under the GRS government.
“A fixed portion of Sabah’s 40% special grant from Putrajaya will be deposited into the fund annually. We want part of our revenue to be invested so that future generations inherit a more stable and resilient financial future.
“Our aim is for the next generation to have some degree of financial independence, rather than continue struggling the way we used to,” he said.
Armizan said the fund would be jointly overseen by state representatives and independent experts in finance, investment and legal affairs to ensure sound and strategic investments, both domestically and internationally.
He said the initiative was designed to give future Sabah administrations greater fiscal space, reducing reliance on fluctuating revenue sources or federal allocations to address legacy infrastructure and development gaps.
He also expressed confidence that Sabah would secure a favourable outcome in the ongoing negotiations over the 40% special grant.
“I am optimistic because the federal government has formally stated that the 40% entitlement will not be appealed,” he said.
The Kota Kinabalu High Court ruled on Oct 17 that the federal government had acted unlawfully and beyond its constitutional powers by failing to fulfil Sabah’s rights to 40% of federal revenue obtained from the state between 1974 and 2021.
The Attorney-General’s Chambers announced last Tuesday that the federal government would not appeal the court’s decision affirming Sabah’s 40% entitlement to federal revenue derived from the state.
However, the AGC said the government intended to challenge other “defects” in the grounds of judgment.