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Malaysia's Federal government has announced RM4.06 billion in funding for rural water supply projects across Sabah, marking a shift toward state-led implementation of critical infrastructure development.
Sabah will press for the remaining RM900 million of its RM1.5 billion special grant under the Malaysia Agreement 1963 during a federal meeting on Monday, following an interim payment of RM600 million last year.
Melaka has received RM9.801 million under the Ecological Fiscal Transfer for Biodiversity Conservation programme to boost environmental protection. The state will also host the 2026 National Environment Day celebration.
The MP for Banggi has appealed to the federal government to fund a RM300 million road project spanning 37 kilometres across Pulau Banggi, citing poor infrastructure and safety hazards affecting the remote island community.
Deputy Finance Minister Liew Chin Tong has assured Sabah that a RM1.5 billion increase in its interim special grant, announced by Prime Minister Anwar Ibrahim in May, will not diminish the state's operating and development budget allocations.
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Prime Minister Anwar Ibrahim has reiterated that the federal government distributes aid fairly across all states regardless of their political affiliations, including opposition-led Kelantan and Kedah.
The Prime Minister's senior political advisor has rejected claims of political bias in federal allocations, asserting the government prioritises economic potential over party affiliation when distributing development funds.
Prime Minister Anwar Ibrahim has made clear that the federal government will not absorb unexpected costs incurred by state governments on their projects, signalling stricter financial discipline across Malaysian federalism.
Transport Minister Anthony Loke has announced that the Federal Government will provide funding for Johor's Elevated Autonomous Rapid Transit (E-ART) project, as private sector financing alone has proven insufficient for the mega-infrastructure initiative.
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DAP national adviser Lim Guan Eng has called on Prime Minister Anwar Ibrahim to settle what he describes as Penang's RM2.8 billion federal funding shortfall and to restructure how Putrajaya distributes resources to states.