Govt increases allocations to all states, Sabah and Sarawak receive highest sums, says Amir Hamzah

KUALA LUMPUR, Oct 29 — The federal government has always prioritised projects proposed by the state governments, including increasing allocations to all states, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

He said that since 2023, several main grants have been enhanced, with the Economic, Infrastructure and Welfare Development-Based Grants (TAHAP Grants) increased to RM400 million per year.

Meanwhile, the allocation for the Malaysian Road Records Information System (MARRIS) increased to RM5.6 billion in 2026 from RM5.2 billion in 2023.

“The allocation for the Ecological Fiscal Transfer (EFT) increased to RM270 million in the 2027 Budget from RM150 million in 2023. This increase supports services, infrastructure, and environmental preservation in the states,” he said when winding up the debate on the Supply Bill 2027 at the policy stage for the Ministry of Finance (MoF) in the Dewan Rakyat today.

He said the Madani government also increased Sabah’s interim special grant from RM26.7 million in 2021 to RM1.5 billion, which is more than 50 times. For Sarawak, the interim special grant increased from RM16 million in 2022 to RM1.5 billion, which is more than 90 times.

Meanwhile, Amir Hamzah said the overall allocation for Sabah and Sarawak is the highest, increasing to RM18.7 billion and RM16.2 billion, respectively.

Sabah’s RM18.7 billion allocation comprises RM8.9 billion for operating expenses, RM7 billion for development, and RM2.8 billion in grants to the state government.

He said the government respects the principle of special grants in line with the Constitution, and negotiations are ongoing to finalise a fair and sustainable method of calculation.

“This is the commitment of the Madani Government to drive the development of Sabah and Sarawak while negotiations are underway,” he said.

Federal expenditures are projected to rise from a revised estimate of RM444.1 billion in 2026 to RM459.8 billion in 2027, of which RM376.8 billion will be operating expenditure and RM83 billion as development expenditure. — Bernama