Sarawak will receive RM16.2 billion in federal allocations in 2027, up from RM15.1 billion this year, under Budget 2027.
Prime Minister Datuk Seri Anwar Ibrahim said the federal government would begin formal negotiations with the Sarawak government to finalise the framework for the proposed Sibu Special Economic Zone, including incentives, a one-stop investment facilitation centre and strategic infrastructure requirements.
The government will also continue road infrastructure projects in Sarawak and Sabah, with a combined allocation of RM3.3 billion in 2027. The Sarawak-Sabah Link Road 1 is targeted for completion by the end of next year.
Anwar said 12 matters under the Malaysia Agreement 1963 (MA63) had been finalised under the MADANI administration. These included the transfer of Bintulu Port to Sarawak and the transfer of MASwings to the state, where it will operate as AirBorneo.
The federal government will continue providing RM209 million in subsidies for rural air services, benefiting 820,000 passengers in remote areas.
The government has also 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 continue on a fair and sustainable annual formula.
The government will 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.
A total of RM350 million has also been allocated for federal road maintenance in Sabah and Sarawak, specifically for G1 to G4 contractors.
