KUALA LUMPUR - Finance Minister Datuk Seri Anwar Ibrahim plans to double the special grant for Sarawak and Sabah to RM600 million starting in 2025.
Anwar, who is also the Prime Minister, stated that this special grant has not been reviewed since 1969.
According to Anwar, the Unity Government has increased the allocation this year to RM300 million for Sarawak and Sabah, with RM16 million and RM125.6 million, respectively.
"Development allocations for Sabah and Sarawak continue to be prioritised and are the highest among the states, with RM6.7 billion and RM5.9 billion, respectively," he said while presenting the Malaysia Madani Budget 2025 in the Dewan Rakyat on Friday.
Anwar has reaffirmed the government's commitment to honouring the promises of past leaders regarding the Malaysia Agreement 1963 (MA63), stressing that special attention to Sabah and Sarawak should not be questioned.
He emphasised the need to close the development gap between states, particularly in terms of essential infrastructure like roads, electricity, and clean water.
"In Phase 1B of the Pan Borneo Sabah project, 17 work packages have been issued, with a contract value of RM 9.7 billion," Anwar stated.
This massive infrastructure initiative would connect key areas from Kota Belud to Kudat, Tawau to Kampung Lot M, and Telupid to Ranau. The Pan Borneo Sarawak section is expected to be completed by November 2024, bringing the total cost of both the Sabah and Sarawak projects to RM 25.1 billion.
He also highlighted that the government has finalised four work packages for Phase 2 of the Sabah Sarawak Link-Road (SSLR) project, valued at RM 7.4 billion. Two packages have already been awarded, with the remaining ones expected to be finalised by year-end.
On top of these developments, Anwar revealed plans for the expansion of Tawau Airport in Sabah and Miri Airport in Sarawak, with a combined budget of RM 253 million.
Furthermore, he announced a collaborative effort between the federal government and Sarawak to develop the Sarawak Cancer Centre, a project estimated to cost RM 1 billion.
Anwar commended Sarawak's willingness to prioritise funding for this critical healthcare facility.
These initiatives stressed the government's dedication to bridging the development gap and bringing tangible progress to Sabah and Sarawak, reaffirming the spirit of the Malaysia Agreement 1963.