KUALA LUMPUR: Sabah and Sarawak will continue to receive the largest federal allocations among the states in 2027, with Sabah allocated RM18.7 billion and Sarawak RM16.2 billion.
Tabling Budget 2027, Prime Minister Anwar Ibrahim said Sabah’s allocation had increased from RM17.6 billion this year, while Sarawak’s rose from RM15.1 billion.
Anwar also announced that the government had agreed to double the Public Service Department (JPA) scholarship offers for students from Sabah and Sarawak, providing 4,200 students from the two states with opportunities to pursue higher education each year.
Sibu Special Economic Zone
On Sarawak’s development agenda, Anwar said the federal government would begin formal negotiations with the state government to finalise the framework for the proposed Sibu Special Economic Zone.
The discussions will cover incentives, the establishment of a one-stop investment facilitation centre and strategic infrastructure requirements to support the zone’s development.
RM3.3 billion for road projects
The government has allocated RM3.3 billion in 2027 to continue road infrastructure projects in Sabah and Sarawak.
Anwar said the Miri section of the Trans Borneo Highway had been awarded, while the Limbang and Lawas sections were expected to be awarded by the end of this year.
The Sarawak-Sabah Link Road 1 and Phase 1B of the Pan Borneo Highway in Sabah are targeted for completion by the end of next year.
In addition, RM350 million has been set aside for federal road maintenance works in Sabah and Sarawak, specifically for contractors classified under the G1 to G4 grades.
The allocations and infrastructure initiatives reflect the government’s continued focus on improving connectivity, expanding educational opportunities and supporting economic development in both states.
