Issued by: Dr Kanul Gindol, GBM (GABUNGAN BEBAS MERDEKA) Chairman
KOTA KINABALU: We note the presentation of Budget 2027 by Prime Minister and Finance Minister Datuk Anwar Ibrahim on Friday, and acknowledge the modest increase in allocations announced for Sabah and Sarawak :
– Sabah: RM18.7 billion (up from RM17.6 billion in 2026)
- Sarawak: RM16.2 billion (up from RM15.1 billion in 2026)
We also welcome the continuation of infrastructure funding — RM3.3 billion for roads in both states, progress on the Trans-Borneo Highway, Sabah-Sarawak Link Road, and the doubling of PSD scholarships for Borneo students. These are positive steps.
However — and this is critical — these figures still fall significantly short of what is truly needed.
GBM has consistently called for a minimum of RM20 billion annually for Sabah and RM26 billion annually for Sarawak. This is not a random figure — it is the realistic amount required to:
– Close the decades-long development gap between Borneo and Peninsular Malaysia
– Fix our water, electricity, road networks, healthcare, and education systems
– Fully honour the spirit and letter of the Malaysia Agreement 1963 (MA63)
– Transform our economies so we are no longer merely resource suppliers, but equal partners in progress
The RM1.5 billion interim special grant payment is appreciated, but it must not be seen as a substitute for a fair, permanent, and legally binding formula for the 40% revenue return right that belongs to Sabah — not as charity, but as our right.
The gap remains too wide: Sabah is short by at least RM1.3 billion; Sarawak by nearly RM10 billion. At this pace, catching up will take generations — not years.
MA63 implementation must be accelerated: Promises without clear timelines and enforceable milestones are not enough.
Transparency on revenue-sharing: We need a clear roadmap to finalise the 40% revenue entitlement formula, not just “continuing negotiations.”
Development must reach the interior: Every village, every community deserves equal access — not just major towns.
We urge the Federal Government to:
– Move toward RM20 billion for Sabah and RM26 billion for Sarawak in the next budget cycle
– Expedite the finalisation of the Special Grant formula under MA63
– Present a clear implementation roadmap for all MA63 commitments
– Ensure Borneo has a stronger voice at the highest decision-making tables — including our long-held position that Malaysia’s Prime Minister post should rotate fairly among Peninsular Malaysia, Sarawak, and Sabah
On the huge budget for heritage
preservation and upgrades of landmarks within Kuala Lumpur vicinity, GBM is of the opinion that this is a case of misplaced priority, whereby:
1. Uneven development focus involves Kuala Lumpur getting massive infrastructure funding while Sabah & Sarawak still lacking of basic roads, clean water, and electricity in rural areas
2. The RM1 billion worth of prime KL land being given away — that’s nearly the gap between what Sabah got vs what GBM demanded (RM18.7b vs RM20b)
3. Even the RM3b interim special grant for both Borneo states combined is less than the value of this single KL land parcel alone
4. KL already has Merdeka 118, TRX, Bandar Malaysia — billions poured into the Klang Valley while Borneo falls further behind
5. No clear cost breakdown or total budget for these new KL projects yet
Every billion spent developing yet another new precinct in KL is a billion that could have built schools, clinics, roads and water systems across Sabah and Sarawak first.
We’re not against development — we’re against development that only happens in one part of the country while the other waits decades.
While Anwar’s cabinet sees it fit to allocate and spend billions ringgits of upgrades (actually it is double refurbishments of buildings) on :
– Sultan Abdul Samad Building complex: Restored under Khazanah’s Warisan KL initiative, funded via the RM600 million Dana Warisan
– Budget 2027 next phase: Restoration of Menara Dayabumi, Kuala Lumpur Railway Station, and KTMB Headquarters announced
– DBKL extra: RM400m for 120 acres of parks + 22km covered pedestrian walkways linking Dataran Merdeka, National Mosque, Central Market
– Tourism pitch: Govt says 500,000 visitors already since Sultan Abdul Samad reopened Feb 2026
We in Sabah and Sarawak still have :
– Rural clinics & schools in disrepair with leaking roofs, no proper electricity, poor sanitation
– Government buildings — district offices, hospitals, public facilities — are aging and insufficient
– Yet Borneo’s combined interim special grant is only RM3 billion — shared between the biggest two states in Malaysia, with a combined areas much bigger than the whole Peninsular
– Basic infrastructure — clean water, reliable electricity, sealed roads — remains the #1 daily struggle, not heritage facades
The message hurts Sabahans and Sarawakians deep : Iconic buildings in Kuala Lumpur get billions ringgits makeovers while basic public facilities in Borneo remain underfunded
Heritage preservation has its place — but not at the expense of basic human dignity.
When a historic clock tower in KL gets more attention than a hospital without proper equipment in Sabah — our priorities are wrong. When a colonial-era station gets restored while rural classrooms in Sarawak still have leaking roofs — our values are out of balance.
We’re not saying don’t preserve our heritage. We’re saying : fix the classrooms first, repair the water systems first, build more roads, upgrade our hospitals and clinics first, and help us seek ways to lower the cost of goods in Sabah first.
Then restore the landmarks. That’s what fairness looks like.
