KUCHING: Sabah and Sarawak’s allocation in Budget 2024 remains relatively small, despite a slight increase.
Malaysian Academy of Science Fellow Datuk Dr. Madeline Berma noted that Sabah received RM6.6 billion, or 7.3 per cent of the total, while Sarawak was given RM5.8 billion, equivalent to 6.4 per cent.
“The federal government had allocated RM12.4 billion (7.2 per cent) to Sarawak and Sabah.
“The allocation for both states has increased from RM6.5 billion (Sabah) and RM5.6 billion (Sarawak) respectively.
“The federal government should provide a higher allocation to enhance the financial capacity of these two states to manage their respective economies,” said Dr Madeline when commenting on Budget 2024 tabled by Prime Minister Datuk Seri Anwar Ibrahim recently.
She said the increase in the special grant rate to RM300 million, compared to RM16 million for Sarawak and RM125.6 million for Sabah, is very reasonable because this amount is a step towards a reasonable increase.
Madeline said in the Malaysia Agreement 1963 (MA63), the provision of a special grant under Article 112D of the Federal Constitution stipulates a reasonable allocation to Sarawak and Sabah, which initially was RM16 million and RM26 million, respectively.
“It should be reviewed every five years, but the last time it was done for Sabah and Sarawak was in 1969 and 2022, respectively.
“It is different from grants based on population (capitation grant) or the Road Record Information System grant (MARRIS) that was practiced before,” she added.
Meanwhile, regarding the air transport subsidy of RM209 million for rural areas of Sabah and Sarawak, she said the upgrading of roads and this air transport subsidy is important for the people in Sabah and Sarawak.
“This budget also involves allocations to enhance major infrastructure projects in both Sabah and Sarawak, including the transfer of the operation of Rural Air Services to the governments of Sarawak and Sabah.
“It will enhance mobility and broaden economic opportunities for the populations in both states.”
