KUCHING: The upcoming Budget 2026 should see a significant increase in allocations for Sarawak.
The allocations will double both the state’s special grant and development funds to better support its long-term growth agenda, said Institut Masa Depan Malaysia (MASA) Fellow, Professor Datuk Dr Madeline Berma.
She said Budget 2026, the first under the 13th Malaysia Plan, is expected to remain expansionary while balancing economic growth, fiscal responsibility, and social welfare needs.
“The operating expenditure (OE) will likely rise due to civil service salary adjustments and expanded aid programmes like Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA).
“On the other hand, development expenditure (DE) is projected to expand reflecting the government’s commitment to long-term economic transformation, resilience-building and inclusive development,” she told Sarawak Tribune.
Madeline anticipates higher federal allocations for Sarawak under both special grants and development funds.
“Between 1973 and 2021, the accumulated Special Grant to Sarawak totalled RM16 million. In recent years, it rose from RM300 million in 2023 to RM600 million in 2025. I expect the Federal Government to double this amount to RM1.2 billion in the 2026 budget,” she said.
For development expenditure, she expects allocations for Sarawak to also double, from RM5.8 billion in 2025 to RM11.6 billion next year, with priority given to upgrading healthcare and education facilities.
“Deputy Premier Datuk Amar Dr Sim Kui Hian recently highlighted that Sarawak needs about RM7 billion to redevelop all dilapidated health clinics across the state. Increased grants and allocations would reflect the Federal Government’s recognition of Sarawak’s unique development challenges,” Madeline added.
She also emphasised the importance of aligning the national budget with Sarawak’s Post Covid-19 Development Strategy (PCDS) 2030, particularly in infrastructure, renewable energy, and human capital.
“The allocation from the Budget 2026 should support the development of key projects in infrastructure, energy and education to advance Sarawak while strengthening its economic projection in line with national objectives.
“The budget must enable Sarawak to continue investing in renewable energy sectors such as hydrogen initiatives, green and digital economy,” she said.
Madeline further noted that allocations must also focus on reducing the rural-urban gap through continued investment in basic infrastructure such as roads, treated water, electricity, and high-speed internet — essential for improving quality of life and promoting social mobility across the state.
The Budget 2026 will be tabled by Prime Minister Datuk Seri Anwar Ibrahim on Oct 10 at 4pm.
