Deputy state minister urges transparent formula to ensure Sarawak gets fair share of federal funding

State Deputy Minister of Public Health, Housing and Local Government Datuk Michael Tiang said such a formula would provide greater certainty over development funding and take into account Sarawak’s contribution to the country’s economy and revenue. — The Borneo Post pic

First Published: Sunday, 20 Sep 2026 11:24 AM MYT

SIBU, Sept 20 — Sarawak’s annual federal allocation should be determined through a transparent formula rather than decided from year to year, said State Deputy Minister of Public Health, Housing and Local Government Datuk Michael Tiang.

He said such a formula would provide greater certainty over development funding and take into account Sarawak’s contribution to the country’s economy and revenue.

“I fully support our Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg’s suggestion that it is time for the federal government to come up with a formula on how to calculate the annual allocations for Sarawak’s development.

“Have a formula so there is no need to guess every year. The allocation is determined based on how much income and revenue Sarawak generates for Malaysia,” he said.

Tiang said a clear formula would also provide a more transparent and consistent basis for determining how much Sarawak receives each year.

“I think that is fair, transparent and consistent with the principles of democracy.

“We should have a fair share in Malaysia because we formed Malaysia together. Sarawak should be entitled to a fair share based on what we have contributed to the country’s economy, growth and revenue, as well as our share of the nation’s wealth,” he said.

Tiang said the proposed funding formula was one of three key requests he hoped would be considered in the national Budget 2027, alongside the restoration of diesel subsidies and greater state control over public health funding.

Speaking after officiating at the Sibu Division Bodybuilding and Weightlifting Association’s gym grand opening here yesterday, he reiterated the need for what he describes as a transparent, scientific and accountable approach to federal allocations.

On diesel subsidies, Tiang said the current policy had affected commercial operators as well as non-governmental and religious organisations, particularly those providing services between rural and urban areas.

“We hope that the national budget can restore what we had previously for the diesel subsidy. That is my number one plea,” said the Pelawan assemblyman.

He said diesel remained important not only for commercial activities but also for the delivery of government, welfare and other services across Sarawak.

Higher operating costs, he said, could affect the delivery of such services and weaken connectivity between rural and urban communities.

Tiang also noted changes to the Budi Diesel subsidy scheme, including allowing eligible vehicle owners to transfer their subsidy entitlement to a maximum of three vehicles, but said more was needed to address Sarawak’s circumstances.

His other proposal is for the federal government to provide Sarawak with a dedicated public health allocation while giving the state greater discretion over how the funds are distributed and used.

He said this would enable Sarawak to plan and manage its public health resources according to local needs rather than having funding decisions made entirely at the federal level.

“Give the budget to the Sarawak government to decide how to manage the allocation from the federal government. We make our own decision because we know our place well and how to serve our people,” he said. — The Borneo Post