KUCHING, Oct 10 2025: Sarawak will receive RM6 billion in development allocation under the federal budget 2026, compared to RM6.9 billion that neighbouring Sabah will receive.
Prime Minister Datuk Seri Anwar Ibrahim, in tabling the budget in parliament today, said the two Borneo states will receive the highest allocations for next year.
He said the federal government is determined to ensure rapid development in the two states in line with the wishes of the Malaysia Agreement 1963 (MA63).
“This is not just a promise, but a concrete action to bridge the development gap, specially basic infrastructure, between the two states and the peninsula Malaysia,” Anwar, who is also the Finance Minister, said.
He said Sabah and Sarawak will receive the special grant of RM600 million each.
On the Sarawak-Sabah Link Road 1 (SSLR 1), he said it is expected to be completed in November 2026 while SSLR 2 is under construction and is expected to be completed in mid-2029.
He added the Trans Borneo Highway (LTB) project will complete the Sabah-Sarawak connection road, saying a letter of acceptance for its construction is expected to be issued early next year.
Anwar said the government will upgrade the existing road pavement structure for the red line alignment in the Durin and Salim sections in Sibu at a cost of RM350 million.
He added to ensure that Sabah, Sarawak and the peninsula enjoy the best digital benefits, the MADANI Submarine Cable Extension (SALAM) will be developed by the Communications and Multimedia Commission (MCMC) along 3,190 kilometres at a cost of RM2 billion.
“This will involve an undersea route from Sedili in Johor, to Kuching and Sibu in Sarawak and then to Tuaran, Kudat, Banggi Island, Sandakan and Tawau in Sabah,” he said.
Anwar also announced other proposed projects, such as building the main road in Kapit Division from Nanga Serau to Nanga Seranau, and construction of health clinic with Mukah quarters within the Mukah Division Integrated Health Complex.
The others are the beef cattle production enhancement programme, paddy and rice industry empowerment programme and the people's residency programme (PRR) in Samariang.
He said an allocation of RM1.5 billion for the construction and upgrading new facilities for uniformed bodies, including the Sarawak police headquarters in Kuching, Sungai Tujoh ICQS in Miri and additional building for the 23rd Battalion of the General Operation Force in Sri Aman.
Anwar also announced that for next year, all nine million STR recipients will also receive SARA up to RM100 per month or 1,200 ringgit per year.
Meanwhile, one million STR recipients under eKasih will receive SARA up to 200 ringgit per month or 2,400 ringgit per year.
The unmarried category will receive RM600, which is RM50 per month through SARA.
The maximum rate to be received by a household is RM4,600 for families with five children.
The Government will once again give RM100 under SARA to 22 million Malaysians aged 18 and above.
This will be channeled in mid-February in time for Ramadan preparations and Chinese New Year celebrations.
Anwar said new schools will be built to meet the needs of the local population, including
SK Sri Sadong in Serian and SMK Desa Wira in Batu Kawah.
He said three new unity activity centres will be built at a cost of RM46 million ringgit, including Miri Unity Activity Centre.
Anwar said specifically for the people in rural and interiors of Sabah and Sarawak, RM250 million is provided to cover the cost of distribution of basic goods to areas such as Taradas, Kudat and Kawayoi, Kinabatangan, Sabah as well as Entaroh, Kapit and Nanga Segeris, Sibu.
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