SABAH has been allocated and will receive a record RM17.6 billion under the 2025 Budget, Prime Minister Datuk Seri Anwar Ibrahim announced, underlining the federal government’s commitment to the state’s development.
Speaking at the Dewan Rakyat today, Anwar said the allocation includes funding for electricity, water, roads, telecommunications, and the Pan Borneo Highway.
The government is also recalibrating revenue-sharing mechanisms with Sabah to align with the Constitution and the Malaysia Agreement 1963 (MA63).
“The view that we have neglected Sabah is not correct, because the state is receiving the highest allocation of RM17 billion, and, for example, under the MA63 agreement, the regulation of electricity supply must belong to Sabah, which we handed over in January 2024.
“However, even though it now belongs to Sabah, we are still providing RM1.2 billion for Sabah’s electricity needs, as well as RM765 million for the Southern Link project.
“This could be questioned as the responsibility of the federal government, but the federal government has choices and priorities, as many other states also face issues,” he said, responding to a question from Paya Besar MP Datuk Mohd Shahar Abdullah in the Lower House.
Anwar added that all technical matters and the review of Sabah’s 40 per cent special revenue grant will be brought up at the MA63 Action Council, which includes the Premier of Sarawak and the Chief Minister of Sabah.
“This approach ensures that every decision is made based on official negotiations between the state and federal governments, rather than unilaterally,” he said, emphasising the importance of formal consultations. - November 13, 2025
