Under Budget 2025 (Belanjawan 2025), Sarawak will receive RM5.9 billion in development funds, an increase from RM5.8 billion allocated in the previous national budget.
It is one of several initiatives to ensure inclusive development (Measure Six under Focus One: Driving Reforms) across Malaysia, especially in keeping progress in Sarawak and Sabah on par with other parts of the country.
“The MADANI Goverment is sincere in honouring all commitments made by previous leaders under the Malaysia Agreement of 1963.
“This should not give rise to disputes over the attention given to Sabah and Sarawak, as ideally, there should not be stark disparities in state developments, especially in basic infrastructure like roads, electricity, and clean water,” said Prime Minister and Minister of Finance Malaysia YAB Dato’ Seri Anwar bin Ibrahim when tabling Budget 2025 in Parliament on 18 October 2024.
He also announced various other measures and initiatives by the Federal Government dedicated to supporting Sarawak’s socio-economic growth.
In addition to the rise in allocation for development, the Government has agreed to boost the interim special grant rate for Sarawak to RM600 million in 2025.
It follows an increase of the rate to RM300 million since 2023 from RM16 million (Table 1), with the Prime Minister acknowledging that “the special grant to Sarawak had not been reviewed since 1969.”
| YEAR | SABAH (RM MILLION) | SARAWAK (RM MILLION) |
| 1973-2021 | 26.7 | 16.0 |
| 2022 | 125.6 | 16.0 |
| 2023 | 300 | 300 |
| 2024 | 306 | 306 |
| 2025 | 600 | 600 |
Table 1: Increase in Special Grants to Sabah and Sarawak from 1973-2025 (Source: Belanjawan 2025 Touchpoints)
Other initiatives under Measure Six concerning Sarawak include the finalisation of four Sabah Sarawak Link Road (SSLR) Phase Two work packages; the expansion project for Miri Airport; and the collaborative effort between the Federal Government and the Sarawak Government to develop Sarawak Cancer Centre.
Furthermore, in its commitment to administrative efficiency (Measure 12 of Focus One), more mobile services are to be provided to rural and remote communities for them to gain improved access to essential public services without the need to travel long distances.
For Sarawak, this includes the expansion of Mobile Community Services in Pulau Bruit in Mukah Division, as well as the increase in the number of Mobile BSN Bank available, especially for East Malaysia – by four to a total of 16 – to ease the distribution of Government assistance.
Achieving Socio-Economic Sustainability and Prosperity
Through Focus Two: Reinvigorating the Economy under Budget 2025, numerous measures will be undertaken to guarantee economic growth that benefits the people for the long haul, similar to what Sarawak strives to achieve through its Post COVID-19 Development Strategy 2030 (PCDS 2030) as it aspires to become an advanced state by 2030.
“… A revitalised and sustainable economy, driven by technology and innovation, will only hold true value when its benefits permeate every segment of the rakyat, thereby raising the floor of living standards,” said the Prime Minister.
Measure 17 of Focus Two, for example, sees the introduction of a New Investment Incentive Framework that is expected to be implemented by the third quarter of 2025.
With the goal of prioritising high-value economic activities to enhance the existing practice of offering product-centric incentives, a number of initiatives are set to take place through the framework, such as providing tax incentives at a special rate for investments in 21 economic sectors in regions including Sarawak to bridge the economic gap (contingent upon the success of economic spillovers).
| MEASURE | INITIATIVE |
| Measure 23: Tourism and Culture | Improvements to facilities at Tusan Beach, Bekenu |
| Measure 26: Preserving Natural Treasures | National River Trail and Community River Clean-up Programmes to be complemented with communication, education and public awareness (CEPA) involving local communities in rivers categorised as polluted, including Sungai Entanak, Sarawak. |
| Measure 27: Food Security | RM65 million allocation to develop irrigation and drainage of paddy fields and to expand FELCRA paddy estates in Sarawak.Increase in ceiling rate of assistance for the construction of new fishermen houses or resettlement to RM90,000 from RM68,000 for Sarawak. |
| Measure 33: Hawkers and Small Traders Facilities | RM100 million allocation for efforts to improve comfort and safety of food stalls, markets, and public spaces, including constructing new stalls and upgrading infrastructure of public markets under all local authorities nationwide; and providing business spaces for small traders at Tamu Desa in Sabah and Sarawak. |
Table 2: Examples of initiatives applicable to Sarawak in Focus Two: Reinvigorating the Economy under Budget 2025 (Source: Belanjawan 2025 Touchpoints)
Meanwhile, Focus Three: Prospering the Rakyat under Budget 2025 aims to promote inclusivity within Malaysia’s progress, akin to one of the three pillars anchoring Sarawak’s aspiration via PCDS 2030, namely Inclusive Society.
“The responsibility of leaders and public servants is to serve with full trust and sincerity to free the people from all forms of oppression and bondage, while also elevating the dignity of the nation’s administration to a higher and more commendable level,” the Prime Minister elaborated.
A key measure in this focus is mainstream education (Measure 38 of Focus Three), whereby priority is made on the provision of “conducive, safe, and pristine learning environment” for children to thrive in their pursuit for knowledge and eventually their capability in contributing to the country’s development.
Initiatives that are to be implemented in this measure for Sarawak are, among other, upgrades of dilapidated schools; construction of new schools including SK Dudong, Sibu; and Fixed-Line Broadband Infrastructure Connectivity Programme for internet connectivity at schools located in remote areas.
Relatively, the Federal Government will establish a number of PERMATA centres dedicated to uplifting the early education of autistic children in 2025 (Measure 49: Children of Focus Three).
In Sarawak, these will be located at Tabika KEMAS Kampung Sungai Tapang, Kuching; Tabika KEMAS Sentosa Salim, Sibu; and Tabika KEMAS Kampung Tambirat, Asajaya, Samarahan.
For students pursuing their certificate and diploma studies at Institut Kemahiran Islam Malaysia Sarawak (IKMAS), the Government has agreed to increase their monthly allowance by RM100 to RM200 in 2025 (Measure 54: Islamic Principles of Focus Three).
| MEASURE | INITIATIVE |
| Measure 42: Healthcare | Construction of new healthcare facilities across Malaysia, including Klinik Kesihatan in Betong, Sarawak |
| Measure 44: Basic Rural Infrastructure | Upgrading of basic infrastructure in rural, village, and remote areas, such as electricity supply connectivity and clean water supply |
| Measure 46: Public Transport and Road Network | RM200 million allocation for Sabah and Sarawak Rural Air Services, including opening new routes from Kota Kinabalu to Layang-layang and Miri to Long BangaConstruction of new bridges and roads from Nanga Belawai to Song-Kapit, Kapit |
| Measure 54: Volunteerism | Maintenance of places of worship for non-Muslims nationwide, including Sabah and Sarawak, to assist with repairs, renovations, and maintenance works as designated by the Government under the programme |
Table 3: Examples of initiatives applicable to Sarawak in Focus Three: Prospering the Rakyat under Budget 2025 (Source: Belanjawan 2025 Touchpoints)
References:
Ministry of Finance Malaysia. (2024a). Belanjawan 2025 Touchpoints. https://belanjawan.mof.gov.my/pdf/belanjawan2025/ucapan/touchpoint-budget-en.pdf Ministry of Finance Malaysia. (2024b). Budget 2025 Speech. https://belanjawan.mof.gov.my/pdf/belanjawan2025/ucapan/ub25-en.pdf
