By Dayak Daily Team
KUCHING, July 1: Sarawak has emerged as the fourth-largest contributor to Malaysia’s tax revenue, collecting an average of RM10 billion annually between 2023 and 2025.
This figure, shared by Ministry of Finance (MOF) in an infographic on its official social media yesterday (June 30), shows that Sarawak’s contribution places it behind Selangor, (RM43.6 billion), Johor (RM14 billion), and Penang (RM10.7 billion).
Other states recorded much lower contributions over the same period, including Perak (RM4.8 billion), Melaka (RM3.9 billion), Kedah (RM3.7 billion), Pahang (RM3.4 billion), Negeri Sembilan (RM2.5 billion), Terengganu (RM1.2 billion), Kelantan (RM946 million), and Perlis (RM419 million).
This follows Prime Minister Datuk Seri Anwar Ibrahim’ parliamentary remarks yesterday, stressing that most states receive higher federal allocations than their tax contributions, except for Selangor and Penang, and rejected claims that any state is being sidelined.
Selangor contributes RM43.6 billion but receives RM15 billion, while Penang contributes RM10.7 billion and receives RM7.9 billion, reflecting their relatively stronger economic bases.
For the same period, the infographic revealed that Sarawak receives higher federal spending than the taxes it generates, averaging RM14 billion compared to RM10 billion in tax revenue collected.
This trend is observed across most states. Kelantan, for instance, received RM8.9 billion in federal expenditure despite contributing only RM946 million in taxes, while Terengganu received RM7.8 billion against RM1.2 billion. Pahang received RM11 billion compared to RM3.4 billion in tax contributions, and Perlis received RM2.2 billion against RM419 million.
Anwar, in his address during a question time in Parliament, has stressed that funding distribution is determined by development requirements and not merely the tax revenue generated in each state.
Reflecting this principle, federal allocations under the Madani government have increased by an average of 37 per cent in 2026 compared to 2022, covering operating expenditure, development expenditure, and state grants.
Sarawak is set to receive RM15.1 billion in 2026, a 48 per cent increase from RM10.2 billion in 2022.
Other states also saw substantial increases, with Penang receiving a 56 per cent hike (RM5 billion to RM7.8 billion), Kelantan 47 per cent (RM6.6 billion to RM9.7 billion), and Johor 43 per cent (RM10.2 billion to RM14.6 billion). Kedah and Perak each recorded increases of 27 per cent, rising from RM7.7 billion to RM9.8 billion and RM8.2 billion to RM10.4 billion respectively.
In formulating the 13th Malaysia Plan (13MP) and Budget 2026, the government has also aligned new development projects with priorities submitted by state governments, with an average approval rate exceeding 80 per cent.
This data underscores Sarawak’s significant role in the national economy and the federal government’s commitment to closing development gaps through targeted expenditure, while ensuring that less economically developed states receive the support they need to catch up. — DayakDaily
