KUALA LUMPUR — The federal government expects to pay RM3 billion for fuel subsidies for Sabah this year, Prime Minister Datuk Seri Anwar Ibrahim said.
The higher bill covering petrol, diesel and LPG subsidies for Sabah alone will be more than the initial estimate of RM2.2 billion just for diesel for the state.
Anwar, who officiated the 2026 Sabah Kaamatan Festival in Penampang, Kota Kinabalu today, said Putrajaya had not neglected Sabah, as shown by the federal government’s commitment to ensuring funds for the state.
He said Sabah received RM17 billion in development allocations compared with RM10 billion in revenue, proof that the state is not being sidelined.
He also said Sabah’s interim allocation had been increased to RM1.5 billion this year, compared to RM600 million last year.
“The Madani Government is committed to implementing Sabah’s 40 per cent entitlement under the Malaysia Agreement 1963,” he added at the Kaamatan event, Bernama reports.
In March, Anwar said the projected federal diesel subsidy for Sabah alone was RM2.2 billion. Combined with the diesel subsidy for Sarawak, Putrajaya was expected to fork out RM4.6 billion this year to continue the subsidy in the two Borneo states.
Diesel is retailed at a fixed, subsidised price of RM2.15 per litre in Sabah, Sarawak and Labuan, but is floated in the peninsula.
Anwar said the government is committed to ensuring Sabah and Sarawak receive equitable and sustainable development benefits.
He said Sabah has seen growth that exceeded projections and the federal government would continue to expedite upgrading of facilities, including the Kota Kinabalu International Airport. – May 30, 2026