Malaysia’s Budget 2026
UNVEILED by Prime Minister and Finance Minister, Datuk Seri Anwar Ibrahim, under the theme ‘Belanjawan MADANI Keempat: Belanjawan Rakyat’, Malaysia’s Budget 2026 stands not just as a fiscal plan but as a national manifesto of hope, equity and renewal.
With a record-breaking allocation of RM419.2 billion, it is a bold step toward a future where no Malaysian is left behind – whether in bustling Penang, rural Johor, or the verdant heartlands of Sarawak.
This budget is a compass pointing towards regional justice, educational excellence, and people-centred development – a living embodiment of the MADANI philosophy, where growth is measured not just by numbers, but by lives uplifted and dignity restored.
Sarawak: A Landmark RM6-Billion Commitment
Among the most celebrated elements of Budget 2026 is the historic RM6-billion allocations to Sarawak – the highest ever awarded to the State. This is more than financial support; it is a powerful affirmation of trust, recognition and redress, rooted in the long-cherished principles of the Malaysia Agreement 1963 (MA63).
“This is not merely a promise,” said Anwar, “but concrete action to close the development gap, particularly in basic infrastructure.”
And indeed, these words ring true. From the Durin-Salim Road upgrade in Central Sarawak (RM350 million) to the continued work on the Sarawak-Sabah Link Road (SSLR) and Trans Borneo Highway, the focus is clear: connectivity is not a luxury, it is a lifeline.
Beyond roads, Budget 2026 funds crucial digital and power infrastructure. The RM2-billion SALAM Submarine Cable System, linking Johor to Kuching and Sabah, promises to bridge the digital divide, empowering rural communities to access e-learning, telehealth, and the digital economy.
Simultaneously, energy projects like the RM765-million Southern Link Transmission Line complement Sarawak’s growing leadership in renewable energy.
As the late Margaret Mead, an American famous cultural anthropologist, once said, “Never doubt that a small group of thoughtful, committed citizens can change the world.”
In Sarawak, thousands of such citizens – teachers, farmers, youth, entrepreneurs – stand ready, if given the tools and trust.
Education: The Heartbeat of a Just Nation
Budget 2026 dedicates an unprecedented RM66.2 billion to the Ministry of Education, up from RM64.2 billion the previous year – a clear signal that education is the soul of Malaysia’s transformation.
Key allocations include:
• RM2 billion to upgrade over 520 dilapidated schools, with priority given to Sabah and Sarawak.
• The construction of 38 new schools nationwide to reduce overcrowding.
• Enhancements to facilities, including digital tools, prayer spaces, sanitation and safe learning environments.
These investments dovetail with the Education (Amendment) Bill 2025, which now mandates secondary education for all. This shift ensures that every Malaysian child, regardless of postcode, has the right to quality learning.
Prime Minister Anwar eloquently captured the spirit of reform: “Education can no longer be confined to reading and writing. We want to nurture a generation that thinks critically, is cultured, competitive, and bold enough to create.”
Indeed, the budget goes further by bolstering:
• Teacher development programmes to enhance pedagogical and digital skills.
• Scholarships and aid to remove financial barriers for high-potential students.
• Digital education investments to ensure that even the most remote communities are not left behind.
Economic Justice with Fiscal Prudence
In an age where governments must tread the line between austerity and compassion, Budget 2026 finds the balance. While implementing subsidy rationalisation and tax reform, it introduces targeted assistance that ensures aid reaches those who need it most.
It invests in:
• Small and Medium Enterprises (SMEs), with incentives for innovation and digitalisation.
• Green technology and sustainable development, turning Malaysia into a hub of future-ready industries.
• Public transportation and rural markets – including RM20 million to upgrade tamu desa in Sabah and Sarawak, recognising them as not just economic centres but cultural and social anchors.
As Deputy Prime Minister, Datuk Amar Fadillah Yusof, stated, “This budget is not just about economic growth figures; it’s about creating job opportunities, increasing people’s income, and strengthening investor confidence.”
Honouring MA63: From Promise to Practice
Budget 2026 doubles the Special Grant for Sarawak and Sabah to RM600 million, fulfilling one of the long-standing calls under the MA63.
This shift allows Sarawak greater autonomy in directing funds towards localised, culturally relevant development, especially in its indigenous and rural communities.
This is how nation-building meets nuance – recognising that a one-size-fits-all approach has no place in a richly diverse federation like Malaysia.
Sustainability, Water Security and Local Wisdom
Environmental stewardship also finds its place in this people-first budget. As Malaysia accelerates its transition to green growth, Sarawak’s biodiversity and indigenous knowledge systems offer untapped potential.
Calls have been made to allocate part of the RM6 billion toward eco-tourism, community conservation, and sustainable agriculture – sectors that align environmental protection with rural prosperity.
Water, too, is a key issue. While Sabah receives RM1 billion for water infrastructure, Sarawak’s interior regions – often plagued by water insecurity – must be next in line. Clean water is a basic right, and any vision of development that excludes it is incomplete.
Conclusion: A Budget That Dares to Dream – and Deliver
Budget 2026 is more than a document; it is a national promise – a testament that Malaysia’s best days lie not behind but ahead.
It answers the long echoing calls for regional equity, educational transformation, and inclusive prosperity. For Sarawak, the RM6-billion allocation is not just money – it is memory, movement and mandate.
For the youth of Malaysia, every new school and scholarship is a door opened. For the rakyat, it is proof that government can still be a force for good.
Let us, then, turn this budget into more than policy. Let it become practice. Progress. Possibility.
“Hope is not a strategy,” goes the saying – but Budget 2026 dares to make it one.
The views expressed here are those of the writer and do not necessarily represent the views of Sarawak Tribune. The writer can be reached at drjohnlau@gmail.com
