2027 Budget: Sabah, Sarawak retain highest federal allocations
KUALA LUMPUR: Sabah and Sarawak remain the largest recipients of federal allocations under the 2027 Budget, with Sabah receiving RM18.7 billion and Sarawak RM16.2 billion to support infrastructure development, electricity supply and education.
KUALA LUMPUR: In the 2027 Budget, Sabah and Sarawak retain the largest federal allocations, with Sabah getting RM18.7 billion and Sarawak RM16.2 billion for infrastructure, electricity, and education. Prime Minister Anwar Ibrahim announced increased PSD scholarships for students from both states, providing 4,200 annual opportunities for higher education.
The government will also negotiate the development of Sarawak's Sibu Special Economic Zone, focusing on an incentive framework, investment facilitation center, and infrastructure needs. At a cost of RM204 million, the STATCOM system will be installed at key substations in Sabah, while the Southern Link Transmission Line project aims to maintain reliable electricity supply.
Road projects in both states will receive RM3.3 billion, including the Trans Borneo Highway SST completion in the Miri section and the Limbang and Lawas sections by year-end. Sarawak-Sabah Link Road 1 and Pan Borneo Sabah Phase 1B are scheduled for completion by the end of next year. Additionally, RM350 million is allocated for G1 to G4 contractors to maintain federal roads in Sabah and Sarawak.
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