KUALA LUMPUR: Datuk Seri Anwar Ibrahim acknowledged that development allocations for Sabah and Sarawak remain insufficient, saying this was precisely why the government had increased funding for the two states under Budget 2027.
The Prime Minister said the additional allocations reflected the government's recognition of the states' development needs, particularly in rural areas where poor infrastructure and vast geographical distances continued to pose challenges.
"I have to admit that the allocations are never enough. That is why we must ensure good governance, prevent leakages and avoid awarding contracts indiscriminately," he told the Dewan Rakyat on Tuesday (Oct 27).
He was responding to Datuk Seri Dr Ronald Kiandee (PN-Beluran), who questioned why a significant number of rural development projects in Sabah and Sarawak had reportedly been left without funding despite the two states receiving higher allocations under Budget 2027.
Ronald cited remarks by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, who is also Rural and Regional Development Minister, who said that many projects which had not received allocations under his ministry involved Sabah and Sarawak.
He questioned whether political disagreements within the unity government had contributed to the situation, warning that the lack of funding could adversely affect rural communities in both states.
Anwar said the matter involved financial management and planning under the Finance Ministry, adding that Second Finance Minister Datuk Seri Amir Hamzah Azizan would provide a more detailed explanation.
He clarified that the development allocations announced under Budget 2027 were separate from the projects referred to by Ahmad Zahid.
"The allocations we announced are for projects approved based on the latest assessments.
“I stand by our decision to provide greater funding because, despite the smaller population in some areas, many roads in Sabah are in terrible condition and riddled with potholes.
"That is why the allocations must be increased," he said.
Anwar said Sabah received the largest development allocation in Budget 2027, followed by Sarawak, with the distribution taking into account geographical challenges, underdeveloped infrastructure and the needs of remote communities.
He stressed that the Malaysia Agreement 1963 (MA63) must be regarded as a national commitment rather than a matter concerning only Sabah and Sarawak.
"We must not look at this solely from the perspective of individual states or as an effort to give preferential treatment to Sabah and Sarawak.
"MA63 must be viewed as a national commitment. Our responsibility is to safeguard everyone's interests," he said.
Anwar also pointed to the increase in interim special grants for Sabah and Sarawak, from RM600mil to RM1.5bil, as part of the government's efforts to fulfil its commitments.
He said the government would continue to assess funding requirements while ensuring that public resources were managed responsibly.
Earlier, Mohd Kurniawan Naim Moktar (BN-Kinabatangan) had urged the government to review its development allocation formula to give greater consideration to geography, adding that his constituency was comparable in size to Johor, which has 26 parliamentary constituencies.
Anwar said geographical considerations had already been factored into the government's funding decisions, although he acknowledged that the allocations could not meet every development need.
