Federal allocations to states to reflect development needs, not equal distribution, says PM

KUALA LUMPUR, Oct 9 — Prime Minister Anwar Ibrahim announced that federal allocations to states will be based on each state's unique development needs rather than a uniform distribution, during the presentation of Budget 2027. The prime minister aimed to address the disparities between developed, developing, and underdeveloped states.

According to Anwar, this allocation strategy enables more prosperous states to maintain their progress, allows developing states to accelerate their advancement, and empowers regions that have lagged behind to bridge the development gap. The approach is inspired by the principles of American philosopher John Rawls, who questioned in his 1971 book A Theory of Justice whether justice should be solely based on the greatest benefit to society or should be fair to every individual.

Rawls' concept of equality in this context does not imply an equal distribution of resources but rather ensures that each state receives what is reasonable and appropriate to enable its people to progress in tandem with others.