KUCHING: Deputy Prime Minister, Datuk Amar Fadillah ,said that the 2026 Budget places stronger priority on development project execution, especially the alloted funds for Sabah and Sarawak.
He said that monitoring mechanisms will be put in place to ensure that allotted funds are fully spent.
“Sometimes funds are allocated but not fully utilised. This will undermine what the government intends,” he told reporters at a press conference held in conjunction with the Malaysia MADANI Budget 2026 at a hotel here today.
Fadillah, who is also the Minister of Energy Transition and Water Transformation, noted that these discussions are part of broader talks under the Malaysia Agreement 1963 (MA63), particularly Sabah’s request for a higher return of revenue generated in the State.
“So this may be why Sabah receives a larger share than Sarawak, but at the same time, the development gap must be considered.
“Perhaps Sarawak has already made use of many of its own allocations, whereas Sabah may still lag behind. Hence their allocation is greater. And we understand that situation,” he added.
Asked whether he was satisfied with the funding for Sabah and Sarawak, he said he is “somewhat satisfied”, though he acknowledged that much still needs to be done.
“As I said earlier, we must strengthen execution so that the allocations are fully spent and the projects delivered as best as possible,” he said.
On the overall allocations, Fadillah said this is the first time Sabah and Sarawak are receiving more than RM 6 billion each – RM 6 billion for Sarawak and RM 6.9 billion for Sabah.
“Previously the expectation was RM 4 billion; until last year, it was over RM 5 billion. This year, we (Sarawak) get RM 6 billion and Sabah gets RM 6.9 billion,” he said.
He stressed that the critical task is to focus on execution so that what is budgeted is actually spent on the intended programmes and projects.
“It is hoped that with implementation, this can help close the development gap between Peninsular Malaysia and between Sabah and Sarawak,” he said.
He also noted that the special allocation under constitutional Article 122D, which was formerly RM 300 million, has been raised to RM 600 million – a sum that will be maintained next year.
Under the 2026 Budget, Sabah and Sarawak will receive RM 6.9 billion and RM 6 billion, respectively, in development funds.
Prime Minister Datuk Seri Anwar Ibrahim said these record allocations underscore the MADANI government’s commitment to honouring the spirit of MA63 by accelerating development in both States.
