MA63 and the 2026 Budget: Big Promises, Bigger Tests Ahead
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The 2026 Budget signals a stronger commitment by the Federal Government to honour the spirit of the Malaysia Agreement 1963 (MA63), with allocations that stand out both in scale and symbolism. For the first time in recent years, Sabah and Sarawak are placed firmly at the centre of national development priorities, backed by a surge in infrastructure and connectivity funding. Yet as with all ambitious plans, the real challenge lies not in announcement but execution. Sabah’s development allocation has risen to RM6.9 billion, from RM4.4 billion in 2022, while Sarawak’s jumps to RM6 billion from RM2.9 billion. The Special Grant for both states doubles to RM600 million, a significant fiscal gesture toward equitable distribution. Beyond these numbers are tangible projects: the Southern Link Transmission Line (RM765 million) to strengthen Sabah’s power grid, RM1 billion in water infrastructure, and the continuation of the Pan Borneo Highway and Sarawak–Sabah Link Road . These are high-vi...