Sarawak’s RM16.2-billion allocation must deliver tangible benefits, fiscal certainty

KUCHING: Sarawak’s increased federal allocation must translate into tangible improvements for communities, particularly in underserved areas, while negotiations on financial arrangements under the Malaysia Agreement 1963 (MA63) must deliver greater certainty, says political sociologist, Prof. Dr Novel Lyndon.

Commenting on Budget 2027, Novel said the increase in federal allocation for Sarawak from RM15.1 billion to RM16.2 billion was welcome, but its effectiveness should be measured by the development outcomes it delivered.

He said the allocation should address persistent infrastructure and public service needs, including roads, water supply, electricity, schools and healthcare facilities, particularly in underserved communities.

“The total allocation alone does not show how much will fund new development or whether it can meet Sarawak’s needs,” he said.

Novel stressed the importance of providing a clear breakdown of the allocation and specific delivery timelines to ensure the funding translated into meaningful benefits for the people.

He said transparency in how the funds would be spent was essential to determining whether the increased allocation could address the state’s development priorities.

On MA63, Novel said Prime Minister Datuk Seri Anwar Ibrahim’s announcement of a RM1.5-billion interim special grant earlier, alongside continued negotiations on a fair annual payment formula, signalled an ongoing commitment to Sarawak’s financial claims.

However, he noted that the financial arrangement remained unresolved, with a lasting formula needed to provide the state with greater certainty over its annual funding.

He said such a formula should establish clear rules for calculating payments, together with mechanisms for reviewing them as Sarawak’s needs and development costs changed.

“My assessment is that today’s announcement strengthens financial support for Sarawak, but higher funding alone does not establish greater fiscal autonomy,” he said.

Novel said meaningful fiscal autonomy would require clearer state authority over spending priorities and project implementation, supported by adequate financial resources and accountability.

He added that Budget 2027 should not be judged solely by the size of the allocation, but by whether the funding reached communities and improved access to essential services.

The outcome of ongoing negotiations with the Federal Government would also be crucial in shaping a more predictable financial relationship between Putrajaya and Sarawak.

Novel said effective budget delivery and a sustainable financial arrangement would be important in determining how far the latest budget could support Sarawak’s development aspirations and broader autonomy agenda.