Peter said any allocation granted to Sarawak should be made in the spirit of restoring the state’s rights and privileges as outlined in the Malaysia Agreement 1963 (MA63).
He also called the current 5% oil and gas royalty “outdated and unjust”, saying royalties belong to the state, not the federal government.
“Under MA63, Sarawak helped form Malaysia as a partner, not as just one of the states.
“The allocation must reflect MA63 as well as our landmass, infrastructure needs, and the historical underdevelopment gap compared with Peninsular Malaysia.
“Greater autonomy over resources is key to restoring Sarawak’s rights and ensuring economic justice,” he said.
Sabah and Sarawak were allocated RM6.7 billion and RM5.9 billion, respectively, in development funds in the 2025 budget, up from RM6.6 billion and RM5.8 billion in the 2024 budget.
In addition, the interim special grants for Sabah and Sarawak were doubled to RM600 million each in 2025 from RM300 million previously.
Parti Solidariti Tanah Airku (STAR) information chief Anuar Ghani voiced similar concerns for Sabah in the 2026 budget, calling for allocations that reflect an equal partnership.
He also pressed for clarity on the Territorial Sea Act and better accountability in budget disbursement.
“Funds are often released late in the year, leaving no time to spend them. Unused allocations should remain in trust under the Financial Provisions Act 1957, not be returned to Putrajaya,” he said.
Anuar also said Sabah requires billions to deal with floods.
“We need RM17 billion for flood mitigation, irrigation and drainage projects to deal with flood-prone areas across 11 districts.
“Flood mitigation is important. Fourteen lives were lost in the last floods. How many more (lives must we lose) before Sabah gets its RM17 billion to solve the problem? This is a question the federal government must answer,” he said.
Both Anuar and Peter highlighted urgent infrastructure needs, including rural clinics, roads, clean water, electricity, and digital connectivity.
“No mother should have to travel one day by river just to see a doctor,” Peter said.
Anuar said Sabah’s main roads, built decades ago, have long outlived their usefulness.
In August, deputy prime minister Fadillah Yusof said 13 of the 29 demands by Sabah and Sarawak under MA63 had been resolved, with the remaining 16 still being reviewed by the technical committee of the Malaysia Agreement 1963 Implementation Action Council that he chairs.
Fadillah said the demands under review involved issues related to education, healthcare, oil royalties, petroleum cash payments, oil minerals and fields, the Territorial Sea Act 2012 (Act 750), as well as state rights over the continental shelf.