KUCHING: Sabah and Sarawak will continue to receive the highest federal allocations in 2027, says Datuk Seri Anwar Ibrahim.
Prime Minister said Sabah will receive RM18.7bil next year, up from RM17.6bil this year, while Sarawak's allocation will increase to RM16.2bil from RM15.1bil this year.
In addition, the Federal Government will continue to negotiate with Sabah and Sarawak to finalise a fair and sustainable formula for the annual special grant to both states.
"For decades, the special grant did not match the development needs of Sabah and Sarawak.
"The Madani government has increased the rate three times, with the latest interim rate totalling RM1.5bil for each state.
"This amount will be paid before the end of the year," Anwar said when tabling Budget 2027 on Friday (Oct 9).
The Prime Minister also announced an increase in Public Service Department (JPA) sponsorship for students born in Sabah and Sarawak to pursue higher education, benefiting 4,200 students every year.
Additionally, he said the Federal Government will start formal negotiations with Sarawak to finalise an incentive framework, one-stop investment facilitation centre and strategic infrastructure for the proposed Sibu Economic Zone, which the Sarawak government plans to develop.
