Sabah gets RM18.7 billion in 2027, its highest federal allocation
Sabah's federal allocation for 2027 is RM18.7 billion, up from RM17.6 billion this year. The interim special grant is now RM1.5 billion, to be paid before the year ends, while talks on a permanent yearly formula continue.
Electricity: RM600 million to keep supply running, and RM204 million for grid-stabilising equipment at the Dam Road and Segaliud substations. The power to regulate electricity is being handed to Sabah under the Malaysia Agreement 1963.
Roads: Pan Borneo Highway Sabah Phase 1B and the Sarawak-Sabah Link Road 1 are both due to be finished by the end of 2027.
For young people: sponsorship offers from the Public Service Department (JPA) for students born in Sabah and Sarawak are doubled to 4,200 a year. About RM1.3 billion goes to upgrading 682 dilapidated schools, mainly in Sabah and Sarawak.
Not stated: how the RM18.7 billion is split between development and day-to-day spending. Critics in Sabah say the interim grant is no substitute for a permanent formula.
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Checked on 12 October 2026
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