Last updated on October 12, 2025
At dawn in Sarawak, the first rays of light strike a half-finished bridge that will soon connect small river towns long separated by water. The hum of machines and the echo of workers’ voices travel through the mist. For many Malaysians, this is only a construction site, but for East Malaysia, it is the shape of a promise finally taking form.
Budget 2026 does not describe Sabah and Sarawak as distant frontiers. It frames them as engines of national growth. For the first time, the development story of the two states is told not through aid, but through equal partnership.
From Margin to Mandate
The numbers themselves carry quiet significance. RM48 billion has been allocated to major infrastructure projects across East Malaysia, marking the largest investment in the region’s history. This is not just a figure on paper. It is a statement that connectivity is no longer a convenience but a constitutional right.
Under the 13th Malaysia Plan, the government is closing the gap that has defined the country for decades. The Prime Minister affirmed that this is not an act of charity but a responsibility. “This is not merely a promise but a concrete action to narrow the development divide,” he said when presenting the allocations for both states.
Building the Arteries of Growth
The plan is ambitious. In Sabah, nine packages of the Pan Borneo Highway have already been completed. The next phase, worth RM1.67 billion, will continue through 2026. Work is also progressing on the Sarawak–Sabah Link Road, with the first phase expected to be completed by November 2026, while the second phase is under construction and will be finished by 2029.
Beyond roads, Sarawak Trans-Borneo Highway will soon tie together the entire northern corridor. The government has also approved upgrades to existing routes, including the Durin and Salim sections in Sibu, costing RM350 million. Together, these projects form a single continuous route that strengthens trade, tourism, and logistics across the island.
Energy infrastructure receives equally strong attention. After a landslide in Penampang disrupted two high-voltage lines affecting 230,000 users, the federal government approved RM765 million for the Southern Link transmission project. Meanwhile, the Sambungan Kabel Dasar Laut MADANI, or SALAM, will connect Johor to Sarawak and Sabah through 3,190 kilometres of undersea cable funded by RM2 billion. This digital lifeline ensures that East Malaysia will share the same level of data access and internet reliability as the peninsula.
Water, Power, and Daily Life
Development here is not limited to highways or data cables. Budget 2026 commits RM1 billion to upgrade water systems across Sabah, including pipe replacements in Tawau, Kota Kinabalu, Penampang, and Putatan. These projects, already in motion, are scheduled for completion next year.
Electricity infrastructure also sees expansion. Even though full regulatory control has been handed to the Sabah state government, the federal administration continues to provide RM1.2 billion in funding to guarantee stable power supply. These combined initiatives are designed to make outages, shortages, and long waits for clean water part of history rather than habit.
Equal Priorities, Shared Future
In Sarawak, new roads are being carved deep into the interior. The Nanga Serau to Nanga Seranau main road in Kapit will open new routes for trade and healthcare access. New health complexes are being built in Mukah, alongside housing quarters for medical staff. Programmes for cattle production, rice cultivation, and public housing under the Residensi Rakyat Samariang project illustrate a more integrated vision of rural development.
For the first time, the allocations go beyond physical infrastructure. They include funding for Tamu Desa, with RM20 million dedicated to expanding market spaces and basic facilities for local traders. The intention is simple yet powerful, build roads, but also build livelihoods.
Digital East Malaysia
The transformation of East Malaysia is also digital. The undersea SALAM cable is more than a technical achievement. It represents a national shift in thinking. Connectivity is now treated as infrastructure equal to highways and bridges. With this network, towns once isolated by geography will soon have the same digital access as Kuala Lumpur or Johor Bahru.
It is not merely about speed. It is about inclusion. For entrepreneurs in Borneo, faster data means access to markets. For teachers, it means classrooms that reach beyond distance. For the next generation, it means equality not as a promise but as a lived experience.
A Nation Rebalanced
When Anwar Ibrahim said that the government’s commitment to Sabah and Sarawak is no longer a slogan but an obligation, it resonated far beyond Parliament. For East Malaysians, the difference is visible, in concrete pillars, in power lines stretching over rivers, and in new roads that connect towns which once seemed out of reach.
The Prime Minister’s closing line was both humble and resolute. He reminded Malaysians that:
National progress cannot stand on one side of the South China Sea. The strength of the federation depends on how evenly its prosperity is shared.
Budget 2026 turns that sentiment into structure. The investment of RM48 billion is not only about rebuilding. It is about rediscovering balance, between East and West, between centre and periphery, between growth and fairness.
