KUCHING – The Sarawak Budget 2026 has been tabled with a strong emphasis on infrastructure, human capital development and digital transformation, despite recording a slight decrease compared to the previous year.
The state government has allocated RM14.9 billion for the year, comprising RM5.6 billion for operating expenditure and RM9.3 billion for development projects.
Deputy Minister of Youth, Sports and Entrepreneur Development, Datuk Gerald Rentap Jabu, underscored the importance of financial prudence and digital adoption among Sarawakians.
He urged citizens to strengthen their work ethic, manage spending wisely and harness digital platforms to expand networks, market products and generate income.
“This budget remains comprehensive. The priority given to rural development such as bridges, roads and basic amenities shows that the government continues to pay attention to the well-being of the people,” he said during a media briefing with the UKAS.
The Premier of Sarawak, Tan Sri Abang Johari Openg, highlighted that the budget reflects the state’s response to global economic uncertainties, including commodity price fluctuations and geopolitical tensions.
Revenue for 2026 is projected at RM13.1 billion, slightly lower than last year’s forecast, but a surplus of RM144 million is expected.
A major highlight of the budget is the Sarawak Free Higher Education Scheme (FTES), with RM250 million allocated to provide free undergraduate education at state-owned universities starting in 2026.
The initiative covers 64 degree programmes and is designed to build a future-ready workforce, offering young Sarawakians greater access to higher education. Datuk Gerald welcomed the move, describing it as a significant opportunity for youth to secure better prospects.
Digital transformation also features prominently, with RM33 million earmarked for artificial intelligence, e-services and financial inclusion.
The Sarawak Artificial Intelligence Centre (SAIC) will receive RM5 million to advance AI applications across healthcare, agriculture, education and manufacturing.
Additionally, RM28 million has been allocated to expand S Pay Global, the state’s flagship digital payment platform, which already serves 1.6 million users and 95,000 merchants.
Datuk Gerald stressed that embracing digital tools such as social media and online platforms is vital for entrepreneurship and career growth.
“Let’s use what we have now such as social media to increase sales and networks. Take this opportunity to build careers together and support the development of Sarawak,” he said.
He also reminded citizens of the importance of financial discipline, urging them to avoid excessive spending and prioritise savings to prepare for global uncertainties.
With Sarawak’s 2030 development aspirations only four years away, he emphasised that collective effort from all communities, including those receiving government assistance, is essential to achieving the state’s long-term goals.
The 2026 budget thus reflects a balanced approach, investing in infrastructure and rural development, while simultaneously preparing Sarawak for a digital future and ensuring equitable access to education.
