By DayakDaily Team
KUCHING, March 5: The federal government will fully channel 100 per cent of Tourism Tax collections to each state and expand the scope of State Road Maintenance Grants to include repairs and the widening of drains and ditches along state roads, under the RM10.5 billion allocations to state governments in 2026.
The Ministry of Finance (MOF) announced this today following the 2026 National Finance Council (MKewN) meeting, which was chaired by Prime Minister and Minister of Finance Dato’ Seri Anwar Ibrahim.
According to a statement, the council has agreed to enhance allocations under the Shared List Grants and streamline disbursement mechanisms to improve the sustainability of state cash flow.
“The Madani government is committed to ensuring that all federal government allocations are distributed fairly and transparently to all states every year, benefiting every citizen regardless of location. These improvements are crucial for accelerating socio-economic development and critical infrastructure nationwide,” said Anwar.
Federal government allocations under the Madani administration have risen steadily, from RM8.1 billion in 2022 to RM10.3 billion in 2025, and are projected to reach RM10.5 billion in 2026.
The enhancements to the State Road Maintenance Grants will also include the procurement of Modular Steel Panel Bridges (Bailey bridges), further bolstering infrastructure resilience.
In line with Visit Malaysia Year 2026, the full disbursement of Tourism Tax revenue marks a significant increase from the current practice, which channels only 50 per cent of collections to the states.
“These measures underline our commitment to work closely with all states, regardless of political stance, and to ensure equitable growth and development across the country,” added Anwar.
The MKewN 2026 decisions align with the Madani Economic framework, aiming to raise the ceiling of national growth potential while improving the floor of citizens’ living standards across Malaysia. — DayakDaily
