Under the 2026 budget, he also said the special grant for both states will be doubled to RM600 million, from RM300 million in 2023.

“The government remains firmly committed to accelerating development in Sabah and Sarawak – not just in words, but through concrete action to bridge infrastructure and economic gaps,” he said.

Despite the full handover of electricity regulation to Sabah last year, he also said that Putrajaya will still channel RM1.2 billion to ensure uninterrupted power supply.

Following the Penampang landslide that disrupted electricity to 230,000 users, he added that the government has approved a RM765 million Southern Link Transmission Project to enhance grid reliability.

Anwar also said the government has allocated RM1 billion for water infrastructure upgrades in Sabah, including the installation of new pipes in Tawau and replacement of ageing ones in Kota Kinabalu, Penampang and Putatan, expected to be completed next year.