KUALA LUMPUR, October 10 — Prime Minister Datuk Seri Anwar Ibrahim announced that Sabah and Sarawak will each receive RM600 million in special grants under Budget 2026, reaffirming the government’s commitment to the Malaysia Agreement 1963 (MA63) and its goal of narrowing the development gap between East Malaysia and the peninsula.
The allocations form part of broader federal efforts to strengthen infrastructure and improve public utilities, with RM6.9 billion allocated for Sabah and RM6 billion for Sarawak next year — both higher than in previous budgets. Anwar said key projects include the Sarawak-Sabah Link Road (SSLR), the Trans Borneo Highway, and the Pan Borneo Highway, with total infrastructure investments estimated at RM48 billion.
Other major initiatives include RM1.2 billion to ensure electricity reliability in Sabah, RM1 billion for water projects in key districts, and RM2 billionfor the Madani Submarine Cable System (Salam) to boost digital connectivity between Peninsular Malaysia and Borneo. He said these developments reflect the Madani government’s “concrete effort to close the development gap” while fostering long-term regional growth and inclusivity.
