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Federal government boosts allocations to all states, Sabah and Sarawak lead

The federal government has increased funding allocations across all states, with Sabah and Sarawak receiving the largest disbursements. The move reflects the government's commitment to supporting state-led development initiatives.

LSN Malaysia · 29 October 2026

Federal government boosts allocations to all states, Sabah and Sarawak lead

KUALA LUMPUR — The federal government has increased its financial allocations to all states, prioritising projects submitted by state administrations, according to an official statement. Sabah and Sarawak have received the highest allocation amounts under the expanded funding scheme.

The enhanced budget distribution demonstrates the government's focus on supporting state-level development programmes and infrastructure projects across the country. By increasing allocations to all states rather than concentrating resources in specific regions, the government aims to ensure more equitable distribution of federal resources.

The two East Malaysian states benefited most from the allocation increase, reflecting their larger geographical areas and development needs. The federal government's approach emphasises collaboration with state governments in identifying and funding priority projects that address local development challenges.

This funding strategy underscores the commitment to strengthening the relationship between federal and state administrations while ensuring that development initiatives align with regional priorities and community needs across Malaysia.