Higher federal allocation to boost state’s rural infrastructure

KUCHING: The increase in federal development allocation is expected to provide Sarawak with greater opportunities to strengthen its road network, particularly in rural areas, while expanding access to electricity and clean water in the interior.

Political analyst Dr Ammar Redza Ahmad Rizal said remote areas such as Ulu Lawas and Baram stood to benefit from the additional funding, particularly through improved infrastructure and connectivity.

He stressed that upgrading basic infrastructure in underserved communities must remain a priority to ensure more balanced and inclusive development across the state.

Beyond road connectivity, he underscored the need to accelerate the expansion of reliable electricity and clean water supplies to remote settlements, where access to essential utilities remained a challenge.

On the Malaysia Agreement 1963 (MA63), he says “I maintain that the true purpose of efforts under MA63 should be to narrow the gap in understanding between the people of Sarawak and those in Peninsular Malaysia. At present, this gap is widening,” when contacted by Sarawak Tribune yesterday.

Commenting on Air Borneo and Bintulu Port as milestones in Sarawak’s pursuit of greater autonomy, Dr Ammar acknowledged that both represented significant progress in strengthening the state government’s ownership and control of strategic assets.

However, he cautioned that the long-term value of these assets would depend on their ability to generate sustainable economic returns and justify their operational and financial commitments.

“Nevertheless, the big question is whether these assets can be translated into economic returns,” he said.

Dr Ammar raised concerns over Air Borneo’s long-term financial sustainability, citing the financial challenges faced by AirAsia as a cautionary example.

“For example, AirAsia is currently facing its own corporate financial challenges. Can Air Borneo avoid similar problems?

“I am concerned that, in the future, more funding may need to be channelled towards ensuring Air Borneo’s continued operations,” he said.

He warned that continued financial support for the airline could divert public funds from other development priorities, particularly infrastructure improvements and initiatives to stimulate economic growth.

Under Budget 2027, tabled by Prime Minister Datuk Seri Anwar Ibrahim in the Dewan Rakyat on Oct 9, Sarawak will receive RM16.2 billion in Federal allocations, up from RM15.1 billion this year.

Sabah will receive RM18.7 billion, compared with RM17.6 billion this year, while RM3.3 billion has been allocated for road projects in both states.