Sabah will receive RM18.7 billion in federal allocations in 2027, up from RM17.6 billion this year, under Budget 2027.
Prime Minister Datuk Seri Anwar Ibrahim said the government would continue to address Sabah’s development needs, including electricity supply and road infrastructure.
The federal government has allocated RM600 million to ensure the continuity of Sabah’s electricity supply following the transfer of regulatory powers over electricity to the state.
The government will also install a STATCOM system at the Dam Road and Segaliud main intake substations at a cost of RM204 million. The Southern Link transmission line project will continue as a longer-term measure to strengthen electricity supply.
Road projects in Sabah and Sarawak will receive a combined allocation of RM3.3 billion in 2027. The Sarawak-Sabah Link Road 1 and Pan Borneo Sabah Highway Phase 1B are targeted for completion by the end of next year.
A total of RM350 million has also been set aside for federal road maintenance in Sabah and Sarawak, specifically for G1 to G4 contractors.
Meanwhile, the federal government has increased the interim special grant for Sabah and Sarawak threefold, with the latest interim rate totalling RM1.5 billion. The payment is expected to be completed before the end of this year, while negotiations on a fair and sustainable annual formula continue.
The government will also double Public Service Department scholarship offers for students from Sabah and Sarawak, providing 4,200 students from both states with opportunities to pursue higher education annually.
