BUDGET 2026: RECORD FUNDS FOR SABAH, SARAWAK SHOW GOVT’S MA63 COMMITMENT - FADILLAH

KUALA LUMPUR, Oct 10 (Bernama) – The record-high development allocations for Sabah and Sarawak announced under Budget 2026 reflect the MADANI Government’s firm commitment to upholding the spirit of the Malaysia Agreement 1963 (MA63), Deputy Prime Minister Datuk Seri Fadillah Yusof said.

Speaking to reporters after the tabling of Budget 2026 today, he said this marks the first time in history that Sabah has been allocated RM6.9 billion and Sarawak RM6 billion for development, excluding other projects outlined in the budget.

“In addition, the government has maintained the RM600 million special grant under MA63 for next year. This clearly demonstrates the government’s commitment to advancing the development agenda in Sabah and Sarawak.

“This budget embodies the government’s determination to build a sustainable economy, a resilient people and a prosperous nation, while emphasising prudent and transparent fiscal management to ensure national resources are channelled to the people through targeted assistance, strategic investments and inclusive green growth,” he said. 

Earlier, Prime Minister Datuk Seri Anwar Ibrahim tabled Budget 2026, themed ‘Belanjawan MADANI Keempat: Belanjawan Rakyat’ (Fourth MADANI Budget: A Budget for the People), which allocates a total of RM470 billion, focusing on driving national economic growth and ensuring the nation’s wealth is shared equitably across all segments of society.

When tabling Budget 2026 in the Dewan Rakyat today, Prime Minister Datuk Seri Anwar Ibrahim said it comprised RM338.2 billion in federal operating expenditure (OE) and RM81 billion in federal development expenditure (DE), as well as RM30 billion in government-linked investment company (GLIC) investments, RM10 billion in public-private investments and RM10.8 billion in investments by federal statutory bodies and Minister of Finance Incorporated (MoF Inc).

Budget 2026 marks the fourth tabled under the MADANI government led by Anwar and the first under the 13th Malaysia Plan (13MP), serving as a key foundation for the nation’s development agenda over the next five years.

Fadillah said Budget 2026 reflects a balance between fiscal discipline and people-centric priorities, focusing on sustainability, transparency and integrity in managing the nation’s finances.

“This budget is not just about economic growth figures; it’s about creating job opportunities, increasing people’s income and strengthening investor confidence in Malaysia.

“Overall, the MADANI Budget 2026 is a disciplined, people-focused and long-term investment budget. The government is committed to ensuring all allocations are utilised according to schedule, cost and quality targets,” he said.

Meanwhile, Fadillah said the Energy Transition and Water Transformation Ministry (PETRA), which he leads, received several key allocations, including RM2.2 billion for 43 flood mitigation projects,12 of which are new, while the rest are ongoing.

He said PETRA also received RM28.6 million for nuclear energy development, covering preliminary studies and preparatory work, and RM20 million for the MADANI Energy Smart Programme towards achieving the Net Zero 2050 target.

“A total of RM1.9 billion is allocated for electricity supply in Sabah and Labuan, particularly for the Southern Link project to generate new power capacity. Additionally, RM292 million is set aside for the MASMA programme focusing on river and water infrastructure.

“The ministry will ensure all projects are implemented swiftly, efficiently and effectively, minimising extensions of time (EOT) and variation orders so that the benefits can be felt by the people as soon as possible,” he added.

-- BERNAMA