Budget 2027 steps up Sabah, Sarawak funding by RM2.2b amid push for development parity

KOTA KINABALU, Oct 9 — Sabah's Chief Minister, Hajiji Noor, hailed the National 2027 Budget as a comprehensive measure to alleviate the financial burden of all Malaysians. The budget, announced earlier, focused on tax reductions, incentives for civil servants, businesses, and all segments of society. Hajiji emphasized that the budget demonstrated the strength of the country's economy, despite the ongoing crisis in West Asia.

Sabah remains the largest recipient of federal allocations in the upcoming budget, with RM18.6 billion, a 6.25% increase from this year's RM17.6 billion. The budget also allocated RM3.3 billion for road projects in Sabah and Sarawak. Additionally, the government agreed to double the number of JPA scholarships for students from Sabah and Sarawak, granting 4,200 students the opportunity to pursue higher education annually.

The government will install Static Synchronous Compensator (STATCOM) systems at Dam Road and Segaliud Main Intake Substations, costing RM204 million, to improve power supply systems. The Southern Link Transmission Line project will also proceed to ensure the sustainability of electricity supply in Sabah. Road infrastructure along the borders of Sabah, Sarawak, and Kalimantan will continue to be upgraded for two-way movement.

Hajiji reiterated the importance of resolving the Malaysia Agreement 1963 (MA63) with Sabah and Sarawak, promising the interim payment of RM1.5 billion would be settled before the end of the year, while negotiations will continue to finalize a fair and sustainable annual formula.