Budget 2027 to drive human capital development of Sabah, Sarawak

KOTA KINABALU, Sabah: The 2027 Budget places the empowerment of human capital in Sabah and Sarawak among its key agendas through various initiatives to strengthen the education ecosystem, said Minister in the Prime Minister’s Department (Sabah and Sarawak), Datuk Mustapha Sakmud.

He said a critical measure by the federal government involves doubling the Public Service Department (JPA) sponsorship offers to 4,200 students born in both states annually, enabling them to pursue studies in critical fields.

He added that regarding educational infrastructure, nearly RM1.3 billion has been allocated to upgrade 682 dilapidated schools nationwide, with a specific focus on Sabah and Sarawak.

“In addition, the allocation for school maintenance has been doubled from RM1 billion to RM2 billion, alongside the construction of a new preschool building at Sekolah Kebangsaan (SK) Bulu Silou, Keningau.

“Regarding student welfare, the Early Schooling Assistance has been increased from RM150 to RM200 per pupil; a sum of RM870 million has been allocated for the Supplementary Food Programme (RMT); and a cost-of-living allowance of RM2,500 is being provided to 90,000 Form 6 students,” he said in a statement today.

Mustapha said the FlySiswa MADANI flight ticket subsidy has also been raised from RM400 to RM500 to assist university students from Sabah and Sarawak, followed by an RM800 million allocation to upgrade infrastructure at Higher Education Institutions (IPT) and the expansion of the Dapur Siswa MADANI programme.

He noted that the four announced improvements to National Higher Education Fund Corporation (PTPTN) loan repayments are expected to provide financial relief to over 400,000 borrowers in Borneo.

These initiatives include repayment deferment for those earning RM2,500 and below (starting 2027), a minimum payment of RM50 for the RM2,500 to RM3,000 income bracket, a 10 per cent discount for consistent repayers, and tax deductions for employers from 2027 to 2028.

He added that youths in Sabah and Sarawak are also being provided with RM8 billion for Technical and Vocational Education and Training (TVET), RM500 million in PTPK financing, as well as access to 100,000 free AI subscriptions and 16,000 digital courses.

“To ensure inclusive education, the allowance for students with special educational needs has been raised from RM150 to RM200 per month, alongside increased incentives for special education teachers and the opening of more ‘Tabika Tunas Istimewa’ classes in rural areas,” he said.

Mustapha emphasised that human capital development in Sabah and Sarawak must begin with a quality education ecosystem.

Therefore, he said cooperation between the federal and state governments must be further strengthened to produce a larger pool of professional and competent workers aligned with current industry needs. – BERNAMA