Kuala lumpur: The record-high development allocations for Sabah and Sarawak announced under Budget 2026 reflect the MADANI Government's firm commitment to upholding the spirit of the Malaysia Agreement 1963 (MA63), Deputy Prime Minister Datuk Seri Fadillah Yusof said. Speaking to reporters after the tabling of Budget 2026 today, he noted this marks the first time in history that Sabah has been allocated RM6.9 billion and Sarawak RM6 billion for development, excluding other projects outlined in the budget.
According to BERNAMA News Agency, Deputy Prime Minister Fadillah Yusof emphasized the government's dedication by maintaining the RM600 million special grant under MA63 for next year. This move underscores the government's focus on advancing the development agenda in Sabah and Sarawak, reflecting its determination to build a sustainable economy, a resilient populace, and a prosperous nation. The budget highlights prudent and transparent fiscal management to ensure national resources are channelled to the people through targeted assistance, strategic investments, and inclusive green growth.
Earlier, Prime Minister Datuk Seri Anwar Ibrahim tabled Budget 2026, themed 'Belanjawan MADANI Keempat: Belanjawan Rakyat' (Fourth MADANI Budget: A Budget for the People), allocating a total of RM470 billion. The budget focuses on driving national economic growth and ensuring equitable distribution of the nation's wealth across all societal segments. It comprises RM338.2 billion in federal operating expenditure (OE) and RM81 billion in federal development expenditure (DE), alongside RM30 billion in government-linked investment company (GLIC) investments, RM10 billion in public-private investments, and RM10.8 billion in investments by federal statutory bodies and Minister of Finance Incorporated (MoF Inc).
Budget 2026 marks the fourth tabled under the MADANI government led by Anwar and the first under the 13th Malaysia Plan (13MP), serving as a key foundation for the nation's development agenda over the next five years. Fadillah stated that Budget 2026 balances fiscal discipline with people-centric priorities, focusing on sustainability, transparency, and integrity in managing national finances.
Fadillah highlighted that the budget is not merely about economic growth figures but also about creating job opportunities, increasing people's income, and strengthening investor confidence in Malaysia. He described the MADANI Budget 2026 as disciplined, people-focused, and a long-term investment budget, with the government committed to ensuring all allocations are utilised according to schedule, cost, and quality targets.
Meanwhile, Fadillah announced key allocations for the Energy Transition and Water Transformation Ministry (PETRA), which he leads. These include RM2.2 billion for 43 flood mitigation projects, 12 of which are new, while the rest are ongoing. PETRA also received RM28.6 million for nuclear energy development and RM20 million for the MADANI Energy Smart Programme towards achieving the Net Zero 2050 target.
He further disclosed that RM1.9 billion is allocated for electricity supply in Sabah and Labuan, particularly for the Southern Link project to generate new power capacity. Additionally, RM292 million is set aside for the MASMA programme focusing on river and water infrastructure. Fadillah assured that the ministry would ensure all projects are implemented swiftly, efficiently, and effectively, minimizing extensions of time (EOT) and variation orders to deliver benefits to the people promptly.