KUALA LUMPUR, Nov 2 — Prime Minister Datuk Seri Anwar Ibrahim said an increase in allocations to Sabah and Sarawak in the Budget 2024 is due to the disparity in the development of the two states compared with states in the mainland.

Anwar who is also the finance minister said the disparity in the two states when compared to states in the peninsula involves basic amnesties like water supply, electricity, roads, dilapidated schools and for the completion of the Pan Borneo Highway.

"Let’s be fair, the allocation for Sabah and Sarawak is certainly high, the highest in history, but can it solve all the problems? Certainly not. It will take time but we need to be fair. Water is a problem in Sabah, we managed to resolve it, we also resolved the water problem in Kelantan.

"If we say water is a problem in Sabah and we ignore Kelantan, that is not fair. Therefore, with the available financial resources, we try to be fair and balanced. Just that the problems in Sabah and Sarawak are critical and cannot be delayed,” he said when winding up the Supply Bill 2024 debate for the Ministry of Finance in Dewan Rakyat today.

Anwar said every state received a higher allocation in the Budget 2024, including Kelantan, compared with allocations provided for in previous years.

"It doesn’t matter how much additional allocation we can add, including for water supply in Sabah and Kelantan, I must state that Sabah received RM6.6 billion, how much for Perak? RM1.7 billion, Sarawak RM5.8 billion.

"Pahang? RM3.2 billion, Kelantan? now RM2.8 billion, Kedah up by RM1.8 billion, all states were not spared. But for Sabah and Sarawak we are tied down with the Malaysia Agreement 1963 (MA63), which aims to address historical grievances and ensure equitable development across the nation and the need to provide special grants to Sabah and Sarawak under Article 112D of the Federal Constitution.

"That is why for 2024, the federal allocation for Sabah is RM1.53 billion and Sarawak RM1.63 billion,” he said.

Anwar said he also agreed with Datuk Seri Ronald Kiandee’s (PN-Beluran) request for additional interim allocation for Sabah for development projects in the state.

"The question of interim is right, need to be increased and being discussed. For Sarawak since 1969, the allocation was RM16 million, never been increased. Only this year we raised to RM300 million, for Sabah there was an increase in 2020 to RM125.6 million but now RM300 million.

"Just that this is the first time the interim payment was given by the unity government, it was not given previously. I agree interim payment must be increased but don’t forget for Pan Borneo Highway we approved RM16 billion, Sabah solar hybrid project and transmission of electricity to the Sabah Southern Link.

"Therefore, if still not sufficient, I agree but don’t expect problems that existed for decades to be solved within one year,” he said.

Meanwhile, Anwar also directed the Rahmah programme to be expanded to Labuan, Sabah and Sarawak for the benefit of the people to overcome the rising cost of living. — Bernama