On 12 October 2026, YAB Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari Bin Tun Datuk Abang Haji Openg, Premier of Sarawak, tabled the 2027 Sarawak Budget, themed “Together Building Prosperity and Securing Our Future” (Bersama Membina Kemakmuran dan Menjamin Masa Depan Kita). The Budget focuses on easing the cost of living, strengthening rural connectivity, investing in human capital, accelerating the green economy, supporting high-value industries and maintaining fiscal discipline. Download our 2027 Sarawak Budget Insights Bulletin for more information.

At a Glance:

RM14.845 billion total Budget
RM15.091 billion record revenue (+16%)
RM10.098 billion development expenditure
RM246 million projected surplus

1. Easing the Cost of Living:

RM650 million for SKAS assistance, including RM1,100 per B40 household
Continuation of the 25% electricity discount and RM5 monthly water subsidy
RM45.9 million for welfare assistance and RM14.2 million for medical aid
RM10,000 housing deposit assistance for B40 and M40 first-time homebuyers

2. Bridging the Rural Gap:

RM6.4 billion, representing 64% of development expenditure, allocated to rural areas
RM2.27 billion for the Coastal Road, Second Trunk Road and Northern Coastal Highway
RM892 million for water supply infrastructure, pipelines and the Water Supply Grid
RM113.5 million for rural electricity and RM20 million for broadband connectivity

3. Investing in People:

RM454.34 million for education and talent development
RM200 million for free tertiary education benefiting up to 10,600 students
RM319.35 million for affordable housing initiatives
RM20 million to initiate the Sarawak Cancer Centre

4. Stronger Federal–State Partnership:

Increase in the interim Special Grant from RM600 million to RM1.5 billion
Federal allocation for Sarawak increased to RM16.2 billion
Federal Government agreement on the Sibu Special Economic Zone

5. Accelerating the Green Economy:

Introduction of a carbon levy framework for the oil and gas and energy sectors
RM988 million for the hydrogen-powered Kuching Urban Transportation System (KUTS)
RM10 million for energy transition and efficiency grants
Target of planting 50 million additional trees and restoring 200,000 hectares of forest by 2030

6. High-Value Industries & MSMEs:

RM23.5 million to support the semiconductor industry
Development of a 500MW hydrogen-ready power plant in Miri and the Kuching Low-Carbon Gas Hub
RM50 million in soft loans for women and young entrepreneurs
Introduction of the Foreign Digital Worker Pass from 2027

7. Celebrating Sarawak's Identity:

RM289.7 million for tourism, arts and cultural development
Target of attracting 5.1 million visitors in 2027
RM264 million allocated as Sarawak co-hosts the 34th SEA Games
Proposal to establish the Sarawak Creative Economy Council

8. Disciplined Public Finances:

Raw water royalty doubled to 5 sen per cubic metre
RM300 million allocated to the Sarawak Sovereign Wealth Future Fund
Government-linked company review targeting up to RM11.17 billion in additional revenue by 2030
Implementation of Results-Based Budgeting for measurable outcomes

The 2027 Sarawak Budget reflects the State Government's commitment to balancing immediate economic and social priorities with long-term sustainable growth, infrastructure development, industrial transformation and fiscal resilience.

Want to know more? Explore the full breakdown, investor insights and SALIHIN's recommendations in our 2027 Sarawak Budget Insights Bulletin.

to access the details and stay informed on Sarawak's latest budget developments!