PBK president demands answers over RM2.5 bln Sabah-Sarawak funding gap

Voon Lee Shan

By DayakDaily Team

KUCHING, Oct 10: Parti Bumi Kenyalang (PBK) president Voon Lee Shan is demanding answers over Sarawak’s RM2.5 billion funding gap with Sabah under Budget 2027, questioning whether the federal allocation adequately reflects the State’s development needs and economic contribution.

Following the announcement of Budget 2027 yesterday (Oct 9), he said Sabah had been allocated RM18.7 billion in federal funding, compared with RM16.2 billion for Sarawak, despite both states receiving an additional RM1.1 billion compared with 2026.

In a statement today, Voon acknowledged the increase in allocations but stressed that higher funding alone did not establish whether the distribution was fair or sufficient.

“The question remains: What objective criteria does the federal government use to determine how much each State receives?” he asked.

He said Sarawak’s geographical challenges continued to hinder the delivery of essential services, with many rural and interior communities still lacking access to basic amenities.

Voon called for federal funding to be determined by a broader set of criteria, including geographical size, infrastructure deficits, rural development needs and the cost of providing public services, rather than population alone.

He stressed that PBK was not seeking to reduce Sabah’s allocation, but wanted both States to receive funding that reflected their respective development needs and economic contributions.

Voon also questioned whether federal allocations adequately accounted for differences in infrastructure needs, population density, economic structures and levels of urban development between Sabah and Sarawak and states in Peninsular Malaysia.

He urged the federal government to publish a detailed state-by-state breakdown of Budget 2027 allocations, showing how funds were distributed and how differing development needs were factored into the allocation formula.

Highlighting Sarawak’s contribution to the national economy through its energy industries, oil and gas activities, natural resources, agriculture, forestry and tourism, Voon said the distribution of national resources must be fair, transparent and responsive to regional development needs.

“We are not suggesting that every ringgit generated within a State must automatically be returned to that State.

“However, the distribution of national resources must be fair, transparent and responsive to the development needs of the regions that contribute to the nation’s prosperity,” he said.

Voon also called for a clear and accountable federal allocation framework under the Malaysia Agreement 1963 (MA63), including a fair funding formula, priority for underserved communities, transparent financial reporting and a review of special grants supported by measurable commitments.

He urged the Prime Minister and the federal government to explain the RM2.5 billion difference between Sabah and Sarawak’s allocations and disclose the criteria behind the decision.

“Fairness does not mean taking away from Sabah to give to Sarawak. It means ensuring that neither State is left behind, and that both receive the resources necessary to achieve meaningful and lasting development,” he said. — DayakDaily