Budget 2026: Sabah and Sarawak get highest development allocations

KUALA LUMPUR: Sabah and Sarawak received the highest allocations under Budget 2026 with RM6.9 billion and RM6 billion respectively, said Prime Minister Datuk Seri Anwar Ibrahim.

He said the development allocation for Sabah increased from RM4.4 billion in 2022, while Sarawak’s also continued to rise from RM2.9 billion in 2022.

He added that the increase reflected the government’s concrete action to close the development gap, especially in basic infrastructure, in both states, in line with the spirit of the Malaysia Agreement 1963 (MA63).

“Starting this year, the Special Grant rate for Sabah and Sarawak will be increased to RM600 million from RM300 million in 2023,” he said when tabling the budget themed Belanjawan MADANI Keempat: Belanjawan Rakyat (Fourth MADANI Budget: A Budget for the People) in the Dewan Rakyat today.

Anwar said that under the budget, the government has also allocated RM1.2 billion to ensure uninterrupted power supply in Sabah, although the regulation of electricity supply had been fully handed over to Sabah last year.

At the same time, the government will provide RM765 million in funding for the Southern Link Transmission Line Project to ensure long-term electricity supply sustainability.

This is after taking into account the landslide incident in Penampang, which damaged two main high-voltage electricity transmission lines, resulting in power disruption to 230,000 users on the east coast of Sabah.

In addition, the Prime Minister said the Sabah water project, which involved an allocation of RM1 billion since 2024, is currently at the implementation phase and is expected to be completed next year.

This involves, among others, the installation of pipes in Tawau and upgrading ageing pipes in Kota Kinabalu, Penampang and Putatan.

Regarding several other highway projects, Anwar emphasises that next year, a total of RM1.67 billion will be allocated for the Pan Borneo Sabah to ensure it is implemented as scheduled, thus complementing Phase 1A of the Pan Borneo Sabah package that has been completed.

Phase 1 of the Sarawak-Sabah Link Road (SSLR) is also expected to be completed in November 2026, while SSLR 2 is expected to be completed by mid-2029.

“In addition, the Letter of Acceptance (LOA) for the Trans Borneo Highway Project (PTB), which will complete the road network connecting Sabah and Sarawak, will be issued as early as the first quarter of next year,” he said.

According to him, the government will also upgrade the existing road pavement structure along the red line section between Durin and Salim in Sibu, Sarawak, at a cost of RM350 million, taking the total cost of all public infrastructure projects in both states to RM48 billion.

In a bid to boost digital access, the Prime Minister said the Malaysian Communications and Multimedia Commission (MCMC) will develop the MADANI Submarine Cable System (SALAM) in both states, spanning 3,190 kilometres (km) and costing RM2 billion.

“This will run from Sedili in Johor to Kuching and Sibu in Sarawak, and then to Tuaran, Kudat, Pulau Banggi, Sandakan and Tawau in Sabah,” he said, adding that RM20 million will also be allocated to increase sites and trading spaces with basic facilities for small traders at tamu desa (rural markets) in both states. – Bernama

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