PETALING JAYA: Sabah and Sarawak will receive the highest allocation under Budget 2026, says Prime Minister Datuk Seri Anwar Ibrahim.
A total of RM6.9bil has been allocated for Sabah, up from the RM4.4bil in 2022.
Sarawak’s allocation has also increased to RM6bil from RM2.9bil in 2022.
"Inspired by the Malaysia Agreement 1963, the Madani government is committed to ensuring rapid development in Sabah and Sarawak. This is not merely a promise but concrete action to close the development gap, especially in basic infrastructure,” he said during his Budget 2026 speech on Friday (Oct 10).
The special grant for Sabah and Sarawak will also be increased to RM600mil from RM300mil in 2023.
“Although the regulation of electricity supply was fully handed over to Sabah in January last year, the federal government continues to provide RM1.2bil to ensure uninterrupted supply,” he said.
A landslide incident in Penampang disrupted two main high-voltage power transmission lines, causing power outages to 230,000 users on the east coast of Sabah, though immediate action was taken to restore supply.
For long-term sustainability, the federal government has allocated RM765mil for the Southern Link Transmission Line Project, Anwar said.
Since 2024, the federal government has also provided RM1bil in funding for Sabah water projects, including pipe installations in Tawau and upgrades of aging pipes in Kota Kinabalu, Penampang, and Putatan.
“These projects are currently in the implementation phase and are expected to be completed next year,” he added.
