Budget 2026: Over RM48b Set Aside For Sabah, Sarawak Highways

Sabah and Sarawak are set for a major infrastructure push under Budget 2026, with a combined RM48 billion allocated for key projects and RM600 million in special grants, Prime Minister Datuk Seri Anwar Ibrahim announced in Parliament today.

“In upholding the spirit of MA63, the Madani government is committed to accelerating development in Sabah and Sarawak. This is not merely a promise but a concrete effort to close the development gap, particularly in basic infrastructure,” he said.

Both states will once again receive the highest federal development allocations that includes RM6.9 billion for Sabah and RM6 billion for Sarawak as part of the government’s effort to balance growth between East and West Malaysia.

Among major projects, the Sarawak–Sabah Link Road (SSLR) Phase 1 is on track for completion by November 2026, with Phase 2 expected to wrap up by mid-2029. 

The Trans Borneo Highway, which will connect both states, is expected to begin construction by early 2026.

Anwar said nine Pan Borneo Highway packages in Sarawak have been completed and opened to the public, while four in Sabah are done, with RM1.67 billion set aside to keep the project moving next year. 

"The government will also spend RM350 million upgrading the Durin–Salim section in Sibu," he concluded.