THE Borneo states will receive RM12.6 billion in developmental expenditure under the National Budget 2025, with Sabah allocated RM6.7 billion and Sarawak RM5.9 billion.
This amount represents an increase of RM200 million from the RM12.4 billion allocated to the two states in the 2024 budget.
Prime Minister Datuk Seri Anwar Ibrahim reaffirmed the Federal Government’s commitment to prioritising development in Sabah and Sarawak, reiterating his pledge to fulfil the Malaysia Agreement 1963 (MA63).
"Therefore, it should not be questioned as Sabah and Sarawak are given special attention. The development gap between the states needs to be narrowed, especially in terms of basic infrastructure such as roads, electricity, and clean water," he said during the tabling of the 2025 National Budget in Parliament today.
On MA63, Anwar officially announced an increase in the special grant to RM300 million, compared to the previous RM16 million for Sarawak and RM125.6 million for Sabah.
"Starting 2025, the government plans to double the special grant for Sarawak and Sabah to RM600 million," he added.
Anwar also highlighted that a total of 17 work packages for Phase 1B of the Pan Borneo Sabah project have been issued, with a contract value of RM9.7 billion.
This includes sections from Kota Belud to Kudat, Tawau to Kampung Lot M, and Telupid to Ranau.
Meanwhile, the Pan Borneo Sarawak project is expected to be completed by November 2024.
Anwar noted that the combined cost of the Pan Borneo projects in Sarawak and Sabah has reached RM25.1 billion.
The federal government has also finalised four work packages for Phase 2 of the Sabah Sarawak Link-Road (SSLR), valued at RM7.4 billion.
"Two packages have been awarded, with the remaining packages to be awarded before the end of the year," he said.
In addition, Anwar announced that the government has agreed to expansion projects for Tawau Airport in Sabah and Miri Airport in Sarawak, at a combined cost of RM253 million.
The Prime Minister also shared that the Federal Government is collaborating with Sarawak to develop the Sarawak Cancer Centre, estimated to cost RM1 billion.
"I commend Sarawak’s willingness to prioritise funding for this project’s construction," he said.
Additional benefits for Sabah and Sarawak under National Budget 2025:
1. Economic clusters will be established according to state specialities, such as renewable energy in Perlis and Sabah.
2. Special income tax incentives will be offered for investments in 21 economic sectors across Perlis, Kedah, Kelantan, Terengganu, Sabah, and Sarawak, subject to economic spillovers.
3. RM65 million is allocated for irrigation and drainage development in rice granaries and the expansion of FELCRA paddy estates in Sabah and Sarawak.
The windfall profit levy threshold for palm oil will be increased to RM3,650 for Sabah and Sarawak, with market price ranges and export duties on crude palm oil to be revised starting November 1, 2024.
4. RM1 billion is allocated for upgrading dilapidated infrastructure in 543 schools, especially in Sabah and Sarawak, with two new schools—SMK Lok Kawi (Putatan) and SK Dudong (Sarawak)—and one special needs school in Tuaran, as part of an RM300 million allocation. Eleven autism learning centres, including in Sabah and Sarawak, are also planned for next year.
5. Nearly RM500 million is allocated for the provision of clean water and electricity to 5,150 homes in Sabah and Sarawak.
6. Rural Air Services in Sabah and Sarawak will continue with over RM200 million allocated, including new routes from Kota Kinabalu to Layang-Layang and Miri to Long Banga.
7. Two new border posts will be constructed in Bantul and Serudung, Sabah.
8. RM5 million is allocated to address water supply constraints in the ESS Zone in Sabah, utilising a hybrid system combining rainwater and groundwater. - October 18, 2024
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