PUTRAJAYA: The Federal Government must prioritize fair and equitable development allocations in Budget 2027, adopting a ratio of 50:25:25 between Malaya, Sabah, and Sarawak. This call comes amid ongoing concerns over the unequal distribution of development funds that perpetuate regional disparities across Malaysia.
Parti Solidariti Tanah Airku (STAR) Information Chief, Mohd. Anuar Tan Sri Ghani Gilong in a statement said, in 2026, Sabah and Sarawak received RM6.9 billion and RM6.0 billion respectively from a total development budget of RM81 billion. This means Sabah and Sarawak only received 8.5% and 7.4% respectively, while Malaya was allocated a staggering RM68.1 billion, representing 84.1% of the total. Similarly, in 2025, Sabah received RM6.7 billion and Sarawak RM5.9 billion out of RM86 billion, accounting for just 7.8% and 6.8%. Malaya, meanwhile, received RM73.4 billion or 85.4%.
“Compounding the issue, the development funds allocated to Sabah and Sarawak are often underutilized, with unspent amounts being withdrawn and reallocated to subsequent years — a practice that diminishes the impact of these allocations and delays meaningful development,” he stated.
Malaysia’s land distribution further highlights the disparity: the country spans approximately 330,803 square kilometers, with Malaya covering about 39.8% (131,590 sq km), Sabah 22.3% (73,631 sq km), and Sarawak 37.6% (124,450 sq km). The remaining 0.3% comprises the Federal Territories of Kuala Lumpur, Putrajaya, and Labuan.
Given these figures, it is unsurprising that Sabah and Sarawak remain the poorest regions in the country. Their GDP per capita in 2025 stands at RM31,125 for Sabah and RM73,757 for Sarawak, both well below the national average of RM59,167. Kuala Lumpur leads with a GDP per capita of RM144,898, according to him.
“The level of underdevelopment in Sabah is alarming. Frequent power outages, water supply disruptions, and inadequate access to treated water plague rural communities. Many villagers rely on gravity-fed water from upstream hills, exposing them to health risks and hardships. Road conditions are equally dire, with potholes prevalent across the state, leading to accidents, vehicle damage, and even fatalities,” he further stated.
In light of these ongoing issues, STAR President Dr. Jeffrey Kitingan’s call for a complete overhaul of the regional disparity in development allocations—replacing the current unequal formula with a fair and equitable one—is both timely and necessary. We urge the Federal Government to heed this call and implement a new allocation ratio of at least 50:25:25 starting from Budget 2028.
The people of Sabah and Sarawak await the upcoming Budget 2027 with hope to see whether the government will genuinely commit to rectifying the regional disparities and prioritize development that benefits all Malaysians equally. It is crucial that the Federal Government demonstrates sincerity in its efforts to develop the Borneo states and bridge the longstanding gap of inequality.-pr/BNN
