Anwar: The federal government has agreed to increase the interim rate of Special Grant to RM1.5 billion for Sarawak

KUCHING, Sept 16 2026: The federal government has agreed to increase the interim rate of the  Special Grant to RM1.5 billion annually to Sarawak, effective from 2026.

Caption: Prime Minister Anwar Ibrahin affixing his signature on the Malaysia Day celebration book

Prime Minister Anwar Ibrahim said the state government has agreed to the increase of the interim rate.

“The federal government continues to negotiate with the Sabah and Sarawak governments to finalise a sustainable formula for determining the annual Special Grant rate,” he said at the Malaysia Day celebration at the Borneo Convention Centre Kuching (BCCK) tonight.

The increase of the interim rate for Sarawak was among the announcements that prime minister made.

He also announced several key initiatives that were aimed at easing the people's burden and strengthening ties between the federal government and the states of Sabah and Sarawak.

“These include the enhancements to the BUDI diesel initiative for the public, and a one-off special flight ticket purchase subsidy for every eligible new student at Public Higher Education Institutions (IPTA).

“These initiatives also embody the spirit of the Malaysia Agreement 1963 (MA63) as a national pledge that must continue to be upheld by respecting the rights and interests of Sabah and Sarawak within the federal framework,” the prime minister said.

He said the federal government will continue to work tirelessly to ensure that the nation's progress translates into tangible benefits for the people, allowing Sabah, Sarawak, and the peninsula to move forward together towards a more prosperous and dignified life.

On the  BUDI diesel initiative, Anwar explained that the eligibility transfer facility will be extended to any eligible Malaysian citizen, no longer restricted to immediate family members.

“This means that buyers of vehicles under "continued payment" arrangements (where the buyer takes over loan repayments from the original owner) can enjoy the subsidy once the registered owner designates them as the actual user,” he said.

He said the registered owners who possess more than one diesel vehicle are permitted to transfer eligibility for each vehicle, up to a maximum of three vehicles.

“For instance, if a father owns three diesel vehicles, the eligibility for one vehicle can be transferred to his wife and another to his child.

“Each actual user will receive the subsidy benefit for the vehicle they use,” he explained.

He said these enhancements take effect immediately, and applications can be submitted via the BUDI MADANI Portal.

Acknowledging public concerns regarding high airfares, he said the federal government has agreed to provide a one-off Special Flight Ticket Purchase Assistance of RM500 to each eligible new student at Public Higher Education Institutions (IPTA)—including Public Universities, Polytechnics, and Community Colleges—for the September and October intake sessions this year.

“This grant is expected to directly benefit 7,095 students who need to take domestic flights between Peninsular Malaysia, Sabah, Sarawak, and the Federal Territory of Labuan to commence their studies,” the prime minister said.

He said the RM500 will be channeled directly  into the eligible students’ bank accounts so to facilitate the process and ensure the aid reaches recipients quickly.

He said this method allows families to use the assistance to cover flight ticket costs without the burden of a complicated claims process. Implementation details will be announced by the Ministry of Transport (MOT) in the near future.

“This initiative strengthens the FLYsiswa agenda and serves as another manifestation of the federal  government's concern for the people regarding the cost of living—particularly for parents who must cover additional expenses when their children pursue studies across regions.

“The federal government believes that distance and travel costs should not be barriers for Malaysian youths in pursuing knowledge and building their futures,” he said, adding that every child—whether from the Peninsula, Sabah, Sarawak, or Labuan—deserves equal educational opportunities.

“While RM500 may not cover the entire cost of travel, it represents tangible government assistance to lighten the financial burden on families as their children embark on a significant new chapter in their lives,” Anwar added.

Premier Abang Johari says that for Sarawak, the future has been clearly charted by the GPS government

Premier Abang Johari Openg's text of speech delivered at the Malaysia Day celebration at the Borneo Convention Centre Kuching on Sept 16, 2026

MALAYSIA DAY: LOOKING BACK, LOOKING FORWARD. 

Firstly, I wish to express my deepest gratitude to the Prime Minister for making the journey to Kuching tonight to join us in celebrating the 63rd Malaysia Day, particularly with the people of Sarawak.  

 After 63 years, we not only reflect on the history of Malaysia’s formation but also look at the nation’s journey thus far and how we will continue to forge ahead to become a developed, stable, and sustainable nation in the decades to come. 

For Sarawak, the future has been clearly charted by the GPS Government. We want Sarawak to continue progressing and prospering within Malaysia, while ensuring that Sarawak’s advancement strengthens the nation as a whole through the economy, energy, industry, technology, and regional development. 

RESPECTING RIGHTS, ENSURING THE DEVELOPMENT OF ALL REGIONS AS A NATIONAL AGENDA. 

Leaders from Sarawak agreed to join other regions to form Malaysia in 1963 because they believed that, through Malaysia, Sarawak would have the opportunity to catch up with the then more developed Malaya. 

Now, after 63 years within the Malaysian framework, the people of Sarawak remain steadfast in upholding the vision of the Sarawakian figures who—alongside leaders from Malaya and Sabah—founded Malaysia. 

I welcome the Prime Minister's recent statement assuring that the *Madani* Government under his leadership remains committed to ensuring more balanced national development that takes into account the potential of Sarawak and Sabah.

Furthermore, during the MA63 meeting in Kota Kinabalu a few days ago, the Prime Minister affirmed that efforts to strengthen the implementation of MA63 would be carried out as a national commitment. 

I wish to express my gratitude to the Prime Minister for the Federal Government's agreement to set the parliamentary representation ratio for Sarawak and Sabah at no less than one-third, as enshrined in the Malaysia Agreement 1963 and the IGC Report.

On behalf of the Sarawak GPS Government, I also wish to thank the Prime Minister and the Unity Government for agreeing to determine a revenue-sharing formula between the Central Government and Sarawak, as provided for under Article 112(D) of the Federal Constitution. 

Additionally, I deeply appreciate the Central Government's agreement to place tourism under the Concurrent List of the Ninth Schedule of the Federal Constitution. 

This move will pave the way for stronger collaboration and cooperation between the Central Government and the Sarawak Government to advance the tourism sector—a field that emerged after the formation of Malaysia and constitutes a "residual subject" under the Constitution. 

I sincerely hope that such commitments will foster an understanding that recognizing the rights and privileges of Sabah and Sarawak is an integral part of the national agenda. 

I am confident that through a more serious approach that comprehensively considers the development interests of all regions, the unity of the nation’s people will be further strengthened, as they will feel respected, valued, and accorded the attention they deserve. 

THE SARAWAK GOVERNMENT: “WALKING THE TALK” Distinguished guests, 

The GPS Government in Sarawak has proven itself to be a government that “walks the talk.” Sarawak’s economic development has been outstanding in recent times, anchored by the robust long-term policies of PCDS 2030. 

Steering Sarawak’s economy towards a green and sustainable model is the right strategy to elevate the state to the status of an advanced, high-income economy.

This is evidenced by Bintulu’s selection as one of only 43 “Transitioning Industrial Clusters” (TICs) worldwide—and the first in Malaysia—under the auspices of the World Economic Forum. 

While Bintulu in Northern Sarawak serves as a center for industrial transformation shifting towards clean energy, Tanjung Embang in the South is designed to act as a gateway to a broader economic network, functioning as a low-carbon hub for the nation and the region. 

Supported by a new international airport and a deep-sea port, this low-carbon hub is set to inject massive capital into Sarawak’s economy over the coming decade, with total projected investments reaching RM100 billion.

The willingness of regional development banks—specifically the Asian Development Bank (ADB)—to collaborate with Sarawak serves as a testament to the state’s efforts to establish itself as a green economic hub within the ASEAN and Asian regions. 

Last week, I led the Sarawak delegation to the ADB headquarters in Manila to discuss the strategic direction of Sarawak’s development and its potential contributions to Malaysia and ASEAN—particularly regarding electricity generation and distribution to ASEAN nations—in an effort to strengthen the region's energy security. 

Today, we are already witnessing the potential of cross-border energy connectivity through electricity supplies to Kalimantan and strengthening ties with Sabah, while plans are also underway to supply electricity to Brunei. 

This demonstrates that Sarawak’s energy sector plays an increasingly vital role in the development of Borneo and ASEAN. 

In other words, true to the dreams and vision of Sarawak’s founding leaders within Malaysia, the Land of the Hornbills is striding resolutely and confidently toward a glorious future. 

Through close cooperation and collaboration between the GPS Government and the Federal Government, I am fully confident that Sarawak can reach the pinnacle as a developed, high-income region by 2030, God willing. 

Bintulu Port is officially owned by the state government, effective Sept 1 2026

KUCHING, Sept 16 2026: Bintulu Port, the country’s primary gateway for the export of liquefied natural gas (LNG), was officially handed over to the Sarawak government today in a symbolic ceremony witnessed by Prime Minister Anwar Ibrahim and Premier Abang Johari Openg.

Caption: Transport Minister Anthony Loke (left)  handing over the documents for the transfer of ownership of the Bintulu Port from the federal  to Deputy Premier Douglas Uggah, who represents the state government. Seen witnessing are Premier Minister Anwar Ibrahim (second left) and Premier Abang Johari Openg

Transport Minister Anthony Loke, representing the federal government, handed over to Deputy Premier Douglas Uggah the official documents transferring the ownership of the port from the federal to the state government.

The state government had paid RM1.8 billion to the federal government for the take-over of the port on June 21 2026.

With effective from Sept 1, 2026, all assets, rights, interests, and obligations of the Bintulu Port Authority (BPA) were transferred to and vested in the Sarawak government.

 KEY ASPECTS OF THE APPOINTMENT OF THE EFFECTIVE DATE FOR ACT 858 AND ACT 859

• Via Federal Government Gazette P.U. (B) 313 and P.U. (B) 314 dated 28 August 2026, the Minister of Transport Malaysia designated 1 September 2026 as the date upon which Act 858 and Act 859 would come into force.

• With the coming into force of Act 858 and Act 859, Bintulu Port officially changed its status from a federal port to a state port.

 • The Bintulu Port Authority was dissolved, and its role as the authority for Bintulu Port was assumed by the Bintulu Port Authority (Sarawak), a state statutory body established on 1 September 2024 under the Port Authorities Ordinance, 1961.

TIMELINE FOR THE TAKEOVER OF BINTULU PORT AUTHORITY (BPA)

 • 30 January 2023 – The Premier of Sarawak announced the intention to take over the port.

• 23 February 2023 – The proposal to take over Bintulu Port as a state port was approved by the Sarawak Cabinet.

• 13 October 2023 – The Prime Minister of Malaysia announced approval for the takeover of Bintulu Port during the presentation of the 2024 Budget in Parliament.

• 22 March 2024 – Signing of the Memorandum of Understanding between the Federal Government and the Sarawak Government.

 • 17 July 2024 – The Declaration of an Area within the Bintulu District as a Federal Port (Repeal) Bill 2024 and the Bintulu Port Authority (Dissolution) Bill 2024 were tabled and passed in the Dewan Rakyat.

. • 1 September 2024 – Date of establishment of the Bintulu Port Authority (Sarawak) to regulate Bintulu Port following the dissolution of the Bintulu Port Authority, consequent to the change in Bintulu Port’s status from a federal port to a state port.

• 4 February 2026 – Agreement on the acquisition value of the Bintulu Port Authority, amounting to RM1.8 billion.

 • 21 June 2026 – The Federal Government and the Sarawak Government signed a Completion Agreement, followed by a ceremony in Bintulu for the handover of the cheque from the Sarawak Government to the Federal Government.

• 28 August 2026 – Gazettement of the effective dates for Act 858 and Act 859, and the Bintulu Port Authority farewell ceremony held by the Federal Government.

 • 1 September 2026 – Effective date of the Declaration of an Area within the Bintulu District as a Federal Port (Repeal) Act 2024 [Act 858] and the Bintulu Port Authority (Dissolution) Act 2024 [Act 859].

• 1 September 2026 – The Bintulu Port Authority was dissolved, and the Bintulu Port Authority (Sarawak) assumed the role of port authority under the Port Authorities Ordinance, 1961.

 HISTORY OF THE BINTULU PORT AUTHORITY The Bintulu Port Authority (LPB) was established under the Bintulu Port Authority Act 1981.

 It is a Federal Statutory Body under the purview of the Ministry of Transport Malaysia.

The responsibilities of the Bintulu Port Authority encompass the development, marketing, and provision of comprehensive and efficient port services, with the aim of establishing the facility as an efficient port that serves as an effective and efficient transportation and distribution hub within the BIMP-EAGA network.

 The Authority was established to ensure all necessary preparations were in place for the port to commence operations in 1983, with Bintulu Port constructed as a deep-water port.

Its development aligns with the government's policy of positioning the port as a driving force for industrial activities in Bintulu, particularly for the Liquefied Natural Gas (LNG) industry.

Its strategic location on the shipping route between Eastern nations and Europe offers a distinct advantage to Bintulu Port Authority as an international port.

It also serves as a primary export gateway for Liquefied Natural Gas (LNG) from Malaysia.

Sarawak is almost free of transboundary haze from Kalimantan

KUCHING, Sept 16 2026:  The air quality across Sarawak has almost returned to normal, with  the weather monitoring stations showing a much clearer skies indication that Sarawak is almost free of transboundary haze from Kalimantan

Caption: The air quality in Kuching was categorised as moderate

The air quality in Lundu, which used to be very unhealthy in the past few weeks, was categorised as moderate as at 4pm.

The monitoring station in Serian showed its API reading at 60 while the air quality for Kuching (70), Samarahan (67) and Simanggang (52) was categorised as moderate.

The stations showed the air quality in Sarikei, Kapit, Samalaju, ILP Miri,  Limbang, Lawas and Bario as good.

THE API STATUS FOR SARAWAK, Wednesday, 4pm

KUCHING	70	Moderate
SAMARAHAN	67	Moderate
SERIAN	60	Moderate
SIMANGGANG	52	Moderate
SARIKEI	44	Good
SIBU	65	Moderate
MUKAH	53	Moderate
KAPIT	50	Good
BINTULU	58	Moderate
SAMALAJU	47	Good
MIRI	52	Moderate
ILP MIRI	45	Good
LIMBANG	48	Good
LUNDU	60	Moderate
TEBEDU	73	Moderate
LUBOK ANTU	74	Moderate
KANOWIT	59	Moderate
LAWAS	50	Good
BARIO	20	Good
BETONG (MCAQM)	59	Moderate