KUCHING: Sarawak is hoping for a higher allocation from the Federal Government in the upcoming Budget 2027, says Tan Sri Abang Johari Openg.
"Our hope is that what was discussed under the Malaysia Agreement 1963 (MA63) will be implemented in terms of financial injection.
"Let us wait and see," he told reporters after launching phase two of the Sarawak state-owned enterprises (SOE) transformation programme here on Tuesday (Sept 22).
On Sept 16, Prime Minister Datuk Seri Anwar announced that Sarawak's interim payment of the special grant under Article 112(D) of the Federal Constitution will be increased to RM1.5bil starting this year.
He said the Federal Government will continue to negotiate with Sabah and Sarawak to finalise a formula for the amount of the annual special grant.
Sarawak's interim payment was previously increased from RM300mil to RM600mil pending the formula's finalisation.
In his speech earlier, Abang Johari said Sarawak's SOEs can potentially generate RM9.62bil in additional revenue by 2030, RM1.6bil in additional adjusted profit after tax and approximately RM1.27bil in dividends between 2027 and 2030.
He said these consolidated projections were based on an assessment of the SOEs' strategies and initiatives under phase two of the transformation programme.
"These are encouraging numbers. But let me be clear: these are projections, not achievements.
"Their real value will depend on how effectively they are translated into results," he said.
Abang Johari also called on commercially-oriented SOEs to reduce their dependence on government financial support.
He said the state government would be more selective about allocating capital.
"Capital should follow opportunity, not history. A project that received funding five years ago should not automatically receive another round of funding today," he said.
