KOTA KINABALU: Budget 2027 reflects the commitment of the Federal Government to Sabah and Sarawak, focusing on initiatives that directly address development needs and improve the well-being of the people in both states, says Datuk Mustapha Sakmud (pic).
The Minister in the Prime Minister’s Department (Sabah and Sarawak) said the increase in Federal allocations to RM34.9bil for Sabah and Sarawak shows the government’s determination to accelerate development in East Malaysia while ensuring both states continue to play a role in the nation's progress.
Mustapha said the continued implementation of the Malaysia Agreement 1963 (MA63), including the interim Special Grant of RM1.5bil payment, remains a national priority.
He noted that the payment was interim to negotiations on the federal grant formula, clearly reflecting the Madani government’s commitment.
In his social media posting, Mustapha highlighted the RM3.3bil allocation for road infrastructure, including the Pan Borneo Highway, Sarawak-Sabah Link Road and Trans Borneo Highway projects that would improve connectivity, stimulate economic growth and enhance access to rural areas.
"Reliable infrastructure remains the backbone of development. Improved road networks will create new opportunities for businesses and local communities, particularly in the interior areas of Sabah and Sarawak," he said.
Mustapha also welcomed measures to strengthen Sabah's electricity supply through allocations for transmission infrastructure and continued subsidies.
Mustapha said energy security is crucial to attracting investment and supporting economic growth.
He also noted that the gaps in education and talent would be bridged with the decision to double JPA sponsorship opportunities for Sabah and Sarawak students to 4,200 places annually, as well as an allocation to repair dilapidated schools.
He added that improvements to rural air services and airport facilities in Kota Kinabalu, Tawau, Sandakan and Miri would enhance regional connectivity, facilitate tourism growth and improve access for remote communities.
He noted that economic initiatives under the Budget, including the proposed Sibu Special Economic Zone, entrepreneur development programmes and enhanced distribution of essential goods to rural areas as important steps towards raising incomes and strengthening local economies.
Mustapha also welcomed allocations in healthcare, border security and public facilities, including new specialist healthcare services and improved immigration infrastructure, saying these initiatives would directly improve the quality of life for people in Sabah and Sarawak.
"Budget 2027 is more than just an allocation of funds. It is a comprehensive roadmap that addresses infrastructure, education, energy security, economic growth, connectivity and social wellbeing.
“These key areas show that Sabah and Sarawak remain integral to the nation's development agenda," he posted.
