Budget 2027: MPs welcome higher Sabah, Sarawak allocations, call for faster project delivery

Datuk Wetrom Bahanda (KDM-Kota Marudu) proposed that unspent development allocations for Sabah be carried forward to the following year by establishing a Carry Forward Fund. — Bernama pic

First Published: Wednesday, 14 Oct 2026 9:41 AM MYT

KUALA LUMPUR, Oct 14 — The increased interim special grants and larger development allocations for Sabah and Sarawak are expected to strengthen development in both states, with Members of Parliament (MPs) hoping this will be followed by a finalised special grant formula and more effective project implementation.

Debating the Supply Bill (Budget) 2027 at the policy stage in the Dewan Rakyat yesterday, Datuk Seri Doris Sophia Brodi (GPS-Sri Aman) said the increase in the interim special grant for both states from RM600 million to RM1.5 billion should be appreciated.

However, she hoped the federal government would expedite the drafting of a final formula that is transparent, objective and sustainable under Article 112D of the Federal Constitution and in line with the spirit of the Malaysia Agreement 1963 (MA63).

Datuk Mohd Kurniawan Naim Moktar (BN-Kinabatangan) urged the government to explain the latest status of negotiations on the formula granting Sabah the right to receive 40 per cent of the net revenue derived by the Federal Government from the state.

“This is not just a matter of additional allocations; it involves constitutional responsibility and fiscal relations between the federal government and the Sabah government.

“Therefore, I ask the government to clarify the latest status of the 40 per cent formula negotiations, the method for verifying the federal net revenue derived from Sabah and the targeted timeline to reach a solution with the state government,” he said.

Meanwhile, Datuk Wetrom Bahanda (KDM-Kota Marudu) proposed that unspent development allocations for Sabah be carried forward to the following year by establishing a Carry Forward Fund.

He said the mechanism would ensure approved allocations continue to be utilised, especially when project implementation faces bureaucratic, technical or other constraints that cause delays.

Wetrom noted that Sabah received an allocation of RM18.7 billion for 2027, an increase of RM1.1 billion from the previous year, but failing to use the entire sum would be detrimental to a state still in need of basic infrastructure development.

Echoing Wetrom’s sentiments, Datuk Seri Wilfred Madius Tangau (GRS-Tuaran) urged the Federal Government to end the culture of announcing development projects that ultimately get delayed and become “sick” projects.

Madius also called for measures to ensure Sabah’s development allocations are fully spent to benefit the people.

He asked the government to detail the amount of Sabah’s 2026 development allocation that had been disbursed and spent, including the value of projects implemented by the Sabah Public Works Department (JKR) and the number of sick projects in the state managed by both Sabah JKR and Federal JKR.

He also proposed five improvement measures, including ensuring land, approval and utility matters are resolved before a project begins, and publicly disclosing physical progress, actual expenditure, completion dates and any extensions of time for projects.

“Sick projects must also have recovery plans and follow-up actions. A second extension of time due to contractor weaknesses should undergo an independent review, including considering contract termination in accordance with the law.

“Additionally, Sabah JKR should be empowered as the technical agency for federal projects valued at RM50 million and below,” he said.