Sarawak special allocation to rise to RM1.5 billion

Prime Minister Anwar Ibrahim has announced an increase in the special allocation for Sarawak to RM1.5 billion annually, effective from 2026. This marks a significant rise from the previous RM600 million allocation and aligns the amount with the interim special allocation provided to Sabah.

During his Malaysia Day mandate speech in Kuching, the Prime Minister also introduced several other initiatives aimed at easing the financial burden on citizens and strengthening ties between the Federal Government and the states of Sabah and Sarawak. These measures include a one-off RM500 domestic flight ticket assistance for eligible new students entering public higher education institutions (IPTA) for the September or October intake.

Additionally, the government will improve the Budi Diesel (Budi Madani Diesel) scheme, allowing eligible registered owners to transfer their diesel subsidy eligibility to a maximum of three individuals who actually use the vehicle. Anwar emphasized that these steps honor the spirit of the Malaysia Agreement 1963 (MA63) by respecting the rights and interests of Sabah and Sarawak within the Federal framework.