PRIME MINISTER Datuk Seri Anwar Ibrahim today presided over the 2026 session of the National Finance Council at the Ministry of Finance Complex, convening federal and state leaders to deliberate on key financial policies and the allocation of resources across the nation.
“The National Finance Council provides a critical platform for federal and state governments to discuss and collectively decide on financial policies and resource allocation that impact all levels of administration,” officials said.
The 2026 Council session approved improvements to federal allocations to state governments, including enhancements to the Joint List grants, State Road Maintenance funding, and the distribution of Tourism Tax revenue.
These changes follow the Government’s MADANI initiative to increase allocations under the Per Capita Grant (PMBO) from 2026 onwards.
State representation included Deputy Sarawak Premier Datuk Amar Douglas Uggah Embas, attending on behalf of Sarawak Premier Tan Sri Abang Johari Tun Openg, and Deputy Chief Minister of Sabah Datuk Seri Masidi Manjun representing Chief Minister Datuk Seri Hajiji Noor.
Other state executives present were Penang Chief Minister Chow Kon Yeow, Pahang Menteri Besar Datuk Seri Wan Rosdy Wan Ismail, Perak Menteri Besar Datuk Seri Saarani Mohamad, Terengganu Menteri Besar Datuk Seri Ahmad Samsuri Mokhtar, Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor, Selangor Menteri Besar Datuk Seri Amirudin Shari, Kelantan Menteri Besar Datuk Mohd Nassuruddin Daud, and Johor Menteri Besar Datuk Onn Hafiz Ghazi.
“MADANI Government is committed to improving federal allocations to all state governments annually for the benefit of the entire population, regardless of state or territory.
Anwar, who is also the Finance Minister added: “As outlined in the MADANI Economic Framework, the nation’s wealth must be distributed fairly and guided by principles of good governance”
Federal allocations under the MADANI Government have risen from RM8.1 billion in 2022 to RM10.3 billion in 2025, and are projected to reach RM10.5 billion in 2026.
For 2026, State Road Maintenance funding has been enhanced to cover procurement of Modular Steel Panel Bridges (Bailey Bridges), as well as repair and expansion of drains and culverts along state roads.
The Council also agreed to accelerate disbursements for all Joint List grants.
In addition, for Visit Malaysia Year 2026, the federal government will allocate 100% of collected Tourism Tax revenue directly to the respective states, compared with the current practice of sharing only 50%.
“The MADANI Government remains open to close collaboration with all state governments, irrespective of political affiliation. These enhancements are crucial for advancing socio-economic development and critical infrastructure so that all states may progress together as one nation,” added Anwar.
The measures approved at the 2026 National Finance Council emphasise economic sustainability and the well-being of citizens nationwide, aligning with the MADANI Economic Framework’s goals to elevate the country’s growth potential and raise the standard of living for all Malaysians.
The meeting, held at the Treasury building, saw the participation of Deputy Prime Ministers Datuk Seri Dr Ahmad Zahid Hamidi and Datuk Seri Fadillah Yusof, Finance Minister II Datuk Seri Amir Hamzah Azizan, Deputy Finance Minister Liew Chin Tong, and Minister in the Prime Minister’s Department (Federal Territories) Hannah Yeoh. - March 5, 2026
