Kota Kinabalu: Parti Bersatu Sabah (PBS) has questioned why Sabah was left out of several key economic development initiatives announced under Budget 2027 despite receiving the highest Federal allocation of RM18.7 billion.
PBS Information Chief Dr Bonaventure Boniface said the absence of a specific economic growth initiative for Sabah, alongside the lack of clarity over new healthcare facilities and flood mitigation projects, raised concerns over whether the Budget would adequately address the State’s longstanding development gaps.
He said although the RM18.7 billion allocation represented a 6.2 per cent increase from RM17.6 billion this year, the rise remained below the 8.5 per cent increase in the overall Budget to RM510 billion and Sarawak’s 7.3 per cent allocation increase.
“PBS appreciates this allocation and the Federal Government’s commitment to Sabah. At the same time, we believe that narrowing the development gap requires allocations that correspond to the State’s actual needs and challenges,” he said on Saturday.
Dr Bonaventure noted that Budget 2027 identified economic zones and industrial hubs in Johor, northern Peninsular Malaysia, Penang and Perak, while formal negotiations were announced for the Sibu Special Economic Zone in Sarawak.
However, no comparable initiative was specifically announced for Sabah.
“Roads and electricity are essential foundations for development. At the same time, Sabah needs a growth strategy that attracts investment, expands industries and creates more employment opportunities for the people,” he said.
He also pointed out that although Prime Minister Datuk Seri Anwar Ibrahim had described national borders as new gateways to prosperity, Sabah, which shares a border with Kalimantan, was only mentioned in relation to border road improvements.
Dr Bonaventure said Sabah should be given similar opportunities to develop economic zones capable of attracting investors and generating employment, particularly as the State seeks to close the development gap with other regions.
He also called for greater transparency in allocations announced jointly for Sabah and Sarawak, saying the absence of State-specific breakdowns made it difficult to determine how much Sabah would actually receive.
These included RM3.3 billion for road projects, nearly RM1.3 billion to upgrade 682 dilapidated schools, 4,200 annual Public Service Department (JPA) sponsorship opportunities and RM350 million in road maintenance work for G1 to G4 contractors.
“The needs, population distribution and development challenges of Sabah and Sarawak differ.
“A clear breakdown of allocations will help coordinate implementation and enable the public to assess the progress of projects in their respective states,” he said.
Dr Bonaventure also sought clarification on whether Sabah would benefit from the new healthcare facilities and flood mitigation projects announced under the Budget, as none in the State was specifically named among those highlighted in the Prime Minister’s speech.
He urged the Federal Government to confirm whether Sabah projects were included in the full Budget documents.
Nevertheless, PBS welcomed several measures aimed at addressing longstanding problems affecting Sabahans, particularly unreliable electricity supply and road connectivity.
These include RM204 million for the installation of Static Synchronous Compensator (STATCOM) systems at the Dam Road and Segaliud main intake substations, as well as RM600 million to support Sabah’s electricity supply.
The party also welcomed the targeted completion of Pan Borneo Sabah Phase 1B and Sarawak-Sabah Link Road 1 by the end of 2027.
Other positive measures included the extension of the RM300-per-hectare ploughing incentive to Sabah padi farmers and the RM1.5 billion interim Special Grant, which is expected to be paid before the end of this year.
However, Dr Bonaventure stressed that PBS remained firm on Sabah’s constitutional entitlement to 40 per cent of the net Federal revenue derived from the State.
“PBS emphasises that accepting the interim payment does not cancel, replace or prejudice Sabah’s claim to its 40 per cent entitlement to the net Federal revenue collected from Sabah.
“The interim payment is a temporary measure and must not be regarded as a final settlement of the claim.
“PBS, through Gabungan Rakyat Sabah (GRS), will continue pursuing this right through negotiations with the Federal Government,” he said.
To ensure Budget 2027 delivers meaningful improvements, PBS proposed six measures for consideration through State-Federal cooperation.
They include publishing Sabah-specific breakdowns of all joint allocations, initiating formal negotiations for a special economic zone in Sabah and providing quarterly progress reports on road and electricity projects.
PBS also wants the Government to identify the dilapidated schools in Sabah scheduled for upgrading in 2027, confirm the State’s healthcare and flood mitigation projects, and finalise an annual formula for the Special Grant.
Dr Bonaventure said PBS, through GRS, would continue working with the Federal Government through negotiations, policy coordination and implementation monitoring to ensure allocations translated into tangible benefits.
He said the cooperation must be based on mutual respect and shared responsibility, with Sabah’s development needs remaining the party’s priority.
“We want the commitments under Budget 2027 to translate into completed projects, better basic services and wider economic opportunities.
“The interests of the people of Sabah will remain PBS’ priority,” he said.
Budget 2027, themed “Reaching for the Sky, Rooted in the Ground”, was tabled by Anwar, who is also Finance Minister, in the Dewan Rakyat on Friday.
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