Budget 2027: Sarawak receives RM16.2 billion, Sabah RM18.7 billion

KUALA LUMPUR, Oct 9: The Federal Government allocates RM16.2 billion to Sarawak and RM18.7 billion to Sabah for 2027.

Prime Minister, Datuk Seri Anwar Ibrahim said it was up RM1.1 billion from the previous year.

"The allocation for the two states remains at its highest level, with Sarawak receiving RM15.1 billion and Sabah RM17.6 billion in 2026," he said while presenting Budget 2027 to the Dewan Rakyat today.

Meanwhile, Anwar said the MADANI Government also increased the rate of special grants to Sabah and Sarawak by three times, with the latest interim rate amounting to RM1.5 billion.

He said the payments would be finalized before the end of this year, while negotiations between the two states continued to finalize a fair and sustainable annual grant formula.

"For decades, special grants have not been in line with the development needs of Sabah and Sarawak", he said.

By comparison, the increase in Federal allocations for 2027 saw Sarawak receive an additional about 7.3 percent, while Sabah received an increase of about 6.3 percent over the previous year. - TVS