by David E.
KUALA LUMPUR: Sept 23, 2026 – The Federal Government should reform its development allocation formula to a 50:25:25 ratio between Malaya, Sabah, and Sarawak to effectively address long-standing regional disparities, Parti Solidariti Tanah Airku (STAR) said.
In a press statement issued Tuesday, STAR Information Chief Mohd. Anuar Tan Sri Ghani Gilong argued that the current distribution of funds is heavily skewed towards Malaya, leaving the Bornean states underdeveloped.
Citing figures from the 2026 Budget, Mohd. Anuar noted that out of a total development allocation of RM81 billion, Sabah and Sarawak received RM6.9 billion and RM6.0 billion respectively. He stated that this represented only 8.5% and 7.4% of the total allocation, meaning Malaya received RM68.1 billion, or 84.1% of the funds.
He further highlighted that the disparity was similar in the 2025 Budget, where Sabah and Sarawak received a combined 14.6% (RM12.6 billion) of the RM86 billion total, while Malaya received 85.4% (RM73.4 billion).
“From the disparity in allocations and the land sizes, it is not surprising that Sabah and Sarawak remains as the poorest in the nation,” the statement read.
Mohd. Anuar pointed out that Sabah and Sarawak collectively make up approximately 60% of Malaysia’s total land area, with Sabah at 22.3% and Sarawak at 37.6%, compared to Malaya’s 39.8%. Despite this, he noted that the allocation of development funds does not reflect this geographical reality.
The party also raised concerns regarding the utilisation of these funds, claiming that development allocations for Sabah and Sarawak are often not fully utilised by the end of the financial year. The unspent funds are then withdrawn for the following year, which he said further reduces the impact of development efforts in the region.
The statement linked the funding disparity to the current socioeconomic status of the states. It cited 2025 GDP per capita figures, noting that Sabah stands at RM31,125 and Sarawak at RM73,757, compared to the national average of RM59,167. Kuala Lumpur recorded the highest GDP per capita at RM144,898.
The statement described the state of underdevelopment in Sabah as “massive,” citing frequent power outages and water supply disruptions. It added that many rural areas in Sabah lack treated water, forcing villagers to rely on gravity-fed water from upstream hills.
Road conditions were also criticised, with the statement noting that potholes are prevalent across the state. It claimed that accidents caused by these road conditions have resulted in vehicle damage and, in some cases, fatalities.
Mohd. Anuar reiterated the call by STAR President, Datuk Seri Dr. Jeffrey Kitingan, for the discontinuance of the current regional disparity in development allocations, advocating instead for a fair and equitable formula.
He stated that the proposed 50:25:25 ratio should serve as a wake-up call for the Federal Government to implement changes starting from Budget 2028.
“The people of Sabah and Sarawak awaits Budget 2027 and see whether the necessary fair and equitable development allocations to overcome the regional disparity are given,” the statement concluded, questioning the Federal Government’s sincerity in developing the Borneo States.
