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Federal Government Allocates RM1.5 Billion Special Grant to Sarawak

The temporary allocation more than doubles the RM600 million previously received by the East Malaysian state, marking a significant increase in federal support.

LSN Malaysia · 16 September 2026

Federal Government Allocates RM1.5 Billion Special Grant to Sarawak

The federal government has approved a special temporary grant of RM1.5 billion for Sarawak, substantially boosting financial assistance to the state. The allocation represents a more than twofold increase from the RM600 million previously disbursed to the state, signalling enhanced federal commitment to Sarawak's development priorities.

The funding injection comes as part of broader efforts to support state-level initiatives and address key developmental needs across the region. Government officials have indicated that the grant aims to facilitate targeted programmes and infrastructure projects that benefit Sarawak's residents.

The temporary nature of the allocation suggests it may be subject to specific conditions or timeframes set by federal authorities. State officials are expected to provide further details on how the funds will be deployed across priority sectors.

This increased funding reflects ongoing negotiations between federal and state governments regarding resource distribution and development partnerships. The grant underscores the federal administration's focus on strengthening ties with East Malaysian states and ensuring equitable resource allocation across the country.