Sabah’s state revenue is expected to hit a record RM7 billion, with 70% of it coming from oil and gas, a massive jump from RM4 billion previously. 

Chief Minister Datuk Seri Hajiji Noor credits new deals with Petronas for the windfall, saying the state is finally seeing the rewards of taking control of its own resources.

“We’ve successfully negotiated with Petronas, and as a result, Sabah’s revenue has surged.

“This is a major milestone in our push for greater control over our natural wealth,” he told Astro Awani in an exclusive interview recently.

Hajiji says discussions with Petronas are ongoing to further increase Sabah’s revenue share, with a bigger focus on job creation and business opportunities for Sabahans.

For years, Sabah’s oil and gas industry lined federal coffers while the state struggled with basic infrastructure. 

That started changing with the Commercial Collaborative Agreement (CCA) with Petronas, which gave Sabah a bigger say in its oil and gas production.

At the heart of the state’s strategy is SMJ Energy, Sabah’s own oil and gas investment arm, which now plays a crucial role in upstream and downstream operations. 

On top of that, the petroleum sales tax—a game-changer introduced by the state government—has added another major revenue stream to Sabah’s books.

“These mechanisms have given Sabah a stronger position in the industry, allowing us to reinvest this money into development projects,” Hajiji said.

The government is now looking beyond oil and gas, pushing the blue economy, industrial parks, and infrastructure as the next big revenue sources.

With RM7 billion in state revenue, the government says it’s making sure Sabahans see the benefits firsthand—starting with approximately, RM800 million set aside for financial aid.

Hardcore poor families are getting RM300 a month in direct cash aid, a first-of-its-kind initiative for the state, with around RM400 million allocated for the program, he said, 

Education funding is also at an all-time high, with RM480 million going into scholarships, student loans, and financial assistance.

Sabahan students studying in Peninsular Malaysia are receiving RM600 in travel subsidies to return home, while 20,000 students in Sabah are being given RM300 to help with living costs.

On top of that, funding is being channeled to rural communities, ensuring that education and essential services reach the most underserved areas.

Hajiji insists this is all part of Sabah Maju Jaya (SMJ)—his blueprint to make sure every ringgit of Sabah’s revenue goes back into the state’s development. – March 12, 2025