Budget 2026: RM6b allocation for Sarawak’s development, Sabah gets RM6.9b

Anwar tabling Budget 2026 in Parliament on Oct 10, 2025.
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By DayakDaily Team

KUCHING, Oct 10: Prime Minister Datuk Seri Anwar Ibrahim has announced record federal allocations of RM6 billion for Sarawak and RM6.9 billion for Sabah under Budget 2026, declaring that the MADANI government’s commitment to honour the Malaysia Agreement 1963 (MA63) is being delivered through concrete action, not empty promises.

“Honouring the spirit of MA63, this is not merely a pledge but real action to close the development gap, especially in basic infrastructure,” Anwar said when tabling the federal budget in Parliament today.

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He said Sabah and Sarawak continue to receive the highest federal development allocations among all states, reflecting Putrajaya’s determination to drive rapid growth across both regions.

Starting this year, the Special Grant (Pemberian Khas) for Sabah and Sarawak has also been doubled to RM600 million, up from RM300 million in 2023.

On transport connectivity, Anwar said nine Pan Borneo Sarawak packages have been completed and opened to the public, while four Pan Borneo Sabah Phase 1A packages are done, with RM1.67 billion set aside next year to maintain project momentum.

The Sarawak–Sabah Link Road (SSLR) Phase 1 is scheduled for completion in November 2026, while SSLR Phase 2 is under construction and targeted for mid-2029.

The Trans Borneo Highway (LTB), which will link Sabah and Sarawak by road, is moving forward, with tenders expected to be issued in the first quarter of 2026.

In Sarawak, the federal government will upgrade road pavement structures along the Red Line section in Durin and Salim, Sibu, at a cost of RM350 million.

Altogether, these infrastructure projects across both states carry a total investment of RM48 billion.

To enhance digital access, the MADANI Submarine Cable System (SALAM) will be developed by the Malaysian Communications and Multimedia Commission (MCMC), stretching 3,190 kilometres at a cost of RM2 billion. The cable will link Sedili in Johor to Kuching and Sibu in Sarawak, and then to Tuaran, Kudat, Pulau Banggi, Sandakan and Tawau in Sabah.

Additionally, RM20 million has been allocated to improve Tamu Desa sites in Sabah and Sarawak, providing better facilities and trading spaces for small rural entrepreneurs.

Anwar said the initiatives reflect the federal government’s “unwavering commitment” to ensuring the people of Sabah and Sarawak share equally in Malaysia’s progress and prosperity. – DayakDaily

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