by David E.
PUTRAJAYA: Sept 22, 2026 – The Federal Government must use Budget 2027 as the starting point to correct the longstanding development disparity between Malaya and the Borneo states of Sabah and Sarawak, said Parti Solidariti Tanah Airku (STAR) president Datuk Seri Panglima Dr Jeffrey G. Kitingan.
He said federal development allocations have remained heavily Malaya-centric, with about 86-87 per cent channelled to Malaya while Sabah and Sarawak together receive only 12-13 per cent annually.
“This allocation formula does not reflect the vast geographical size, infrastructure needs, development backwardness and economic potential of Sabah and Sarawak,” he said in a statement yesterday.
Jeffrey said Sabah and Sarawak were persuaded to form Malaysia on the promise that both would be developed comparably to Malaya, but this has not materialised. Sabah is probably 30-40 years behind Malaya in development.
He said the Federal Government cannot continue treating Sabah and Sarawak as merely one unit each compared to Malaya’s 11 states.
“Such an approach ignores the special constitutional position of the Borneo states and the circumstances under which Malaysia was formed in 1963,” he said.
Jeffrey noted Sabah used to have five residencies and some 30 districts and sub-districts, some larger than states in Malaya. For example, the Keningau constituency is larger than Penang, Malacca and Perlis combined.
Sabah remains Malaysia’s poorest state, with eight of the country’s 10 poorest districts located there. Its gross domestic product per capita is less than half the national average, with little done to uplift rural poverty and basic amenities still lacking.
He said Sabah and Sarawak must receive a fairer and more equitable share of federal development funds from Budget 2027 onwards, corresponding with their geographical size, population, development needs, infrastructure deficit and contributions to the national economy.
As an alternative, Jeffrey proposed that Sabah’s constitutional entitlement of 40 per cent of net revenue derived by the Federal Government from Sabah be calculated and paid from 2026 onwards. The entitlement for the “lost years” from 1974 to 2021 can be negotiated separately.
“Prime Minister Datuk Seri Anwar Ibrahim now has a golden opportunity to demonstrate the political will and leadership needed to make the payment of Sabah’s 40 per cent constitutional entitlement a reality,” he said.
He said the payment would fulfil a constitutional obligation and provide Sabah with the financial resources needed to improve essential infrastructure, eradicate poverty, stimulate economic growth and uplift the well-being of its people. At the same time, Sabah would contribute substantially to the national economy.
“The immediate priority must be to stop the continuing accumulation of unpaid entitlements and establish a clear and transparent mechanism for the proper calculation and payment of Sabah’s 40 per cent entitlement moving forward,” he added.
Jeffrey said Budget 2027 must not repeat past allocation patterns.
“It should mark the beginning of a fairer Federal development policy that recognises Sabah and Sarawak as equal partners in the Federation and enables both regions to enjoy development comparable with Malaya,” he said.
Correcting the regional imbalance is not merely a question of funding but a matter of constitutional responsibility, fairness, and Malaysia’s future stability and prosperity, he said.
