TAMBUNAN: The proposal to allocate Federal development funds using the 50:25:25 formula, comprising 50 per cent for Malaya, 25 per cent for Sabah and 25 per cent for Sarawak, is not a new idea raised specifically ahead of the tabling of National Budget 2027.
Parti Solidariti Tanah Airku (Star) President Datuk Seri Dr Jeffrey Kitingan said the formula forms part of an ongoing struggle led by him dating back to at least 2021.
He said the 50:25:25 formula specifically applies to the allocation of Federal development funds and does not refer to the overall Federal Budget.
Furthermore, he said it is a distinct mechanism separate from the issue of Sabah’s 40 per cent net revenue entitlement under the Federal Constitution and should not be conflated with that matter.
Parliamentary records show that Dr Jeffrey, who is Keningau Member of Parliament, submitted an official question to the Prime Minister on Dec 1, 2021, asking why the Government did not allocate development funds for Peninsular Malaysia, Sabah and Sarawak according to a 50:25:25 ratio under the 12th Malaysia Plan (12MP) and National Budget 2022.
The proposal had been raised publicly even earlier during his debate on the 12MP in October 2021, when he suggested that a development allocation of around RM400 billion be distributed with 50 per cent going to Malaya and 25 per cent each to Sabah and Sarawak.
Under that formula, Sabah and Sarawak would have received RM100 billion each over the duration of the 12MP. The proposal was also reported by the media then.
In his parliamentary question on Dec 1, 2021, Dr Jeffrey stated that such an allocation was essential to give Sabah and Sarawak the financial capacity needed to catch up with Peninsular Malaysia’s development level.
This stance was maintained throughout subsequent annual budget debates.
On Oct 23, 2023, while debating Budget 2024, Dr Jeffrey highlighted that out of a total Federal development allocation of RM90.1 billion, Sabah received RM6.6 billion while Sarawak received RM5.8 billion.
The combined sum of RM12.4 billion received by both states represented approximately 13.76 per cent of total development funds, while RM77.7 billion or 86.24 per cent was allocated to Malaya.
He subsequently urged that the baseline for distribution be changed to the 50:25:25 formula, arguing that any allocation below that ratio would not give Sabah and Sarawak a sufficient opportunity to narrow the development gap with Malaya.
Moving into 2025 and 2026, the disparity in Federal development fund allocations continued to be raised.
For 2026, out of total Federal development funds amounting to RM81 billion, Sabah received RM6.9 billion (approximately 8.5 per cent) while Sarawak received RM6.0 billion (approximately 7.4 per cent).
These figures were highlighted by Star in its latest call for the 50:25:25 formula to be adopted in development distribution.
During the parliamentary session in February 2026, Dr Jeffrey also utilised the Dewan Rakyat platform to highlight various basic infrastructure backlogs in Sabah, including poverty as well as water supply, electricity, and road network issues.
The push to make Budget 2027 a turning point in development distribution was further reinforced in a statement by Dr Jeffrey in September 2026, where he emphasized that the allocation formula must account for the geographical and physical realities of Sabah and Sarawak.
Among the factors to be evaluated are land area, population size, basic essential needs, critical infrastructure backlogs and the potential economic contributions of Sabah and Sarawak to the nation.
Star Information Chief Mohd Anuar Ghani reiterated the call on Sept 23, 2026, saying that the 50:25:25 formula must be implemented to address regional development imbalances.
According to Star, for 2026, Sabah and Sarawak received RM6.9 billion and RM6.0 billion respectively out of the total RM81 billion development allocation, while Malaya received RM68.1 billion or 84.1 per cent.
In essence, the 50:25:25 formula means that for every RM100 in Federal development funding, RM50 is allocated to Malaya, RM25 to Sabah and RM25 to Sarawak.
This approach is proposed to provide greater financial capacity to fund roads, clean water supply, electricity amenities, schools, hospitals, telecommunications coverage and various necessary rural infrastructure projects.
The proposal represents a policy position consistently championed by Dr Jeffrey since 2021 through parliamentary debates and official questions.
It is also distinguished from the claim for Sabah’s 40 per cent net revenue right, which remains a separate financial matter under the Federal Constitution.
Within the context of Star’s struggle, the 50:25:25 formula is presented as a development fund allocation mechanism that the party maintains would help bridge the development gap between Malaya, Sabah and Sarawak.
