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Federal government allocates RM1.5 billion interim grant to Sarawak

The allocation represents a significant increase in federal support to the Sarawak government, more than doubling the RM600 million previously disbursed from Putrajaya.

LSN Malaysia · 16 September 2026

Federal government allocates RM1.5 billion interim grant to Sarawak

The federal government has approved an interim special grant of RM1.5 billion for the Sarawak state government, marking a substantial boost to the state's finances.

The allocation is more than double the RM600 million that Sarawak previously received from the federal government, reflecting an enhanced commitment to supporting the state's development and administrative needs.

The interim special grant is intended to provide immediate financial relief to the Sarawak government as it undertakes various development initiatives and meets operational requirements. The funds are expected to support key projects and programmes aligned with the state's development agenda.

The decision underscores the federal government's recognition of Sarawak's importance within the Malaysian federation and its commitment to ensuring adequate resource allocation for the state's continued progress and growth.