(Kuching, 2nd) According to data released by the Ministry of Finance Malaysia, Sarawak contributed an average of RM10 billion in taxes annually from 2023 to 2025, making it the fourth largest tax-contributing state in the country.
An infographic released by the Ministry of Finance on June 30 via its official social media shows that Sarawak's tax contribution is only behind Selangor (RM43.6 billion), Johor (RM14 billion), and Penang (RM10.7 billion).
During the same period, other states’ tax contributions were significantly lower, including Perak (RM4.8 billion), Melaka (RM3.9 billion), Kedah (RM3.7 billion), Pahang (RM3.4 billion), Negeri Sembilan (RM2.5 billion), Terengganu (RM1.2 billion), Kelantan (RM946 million), and Perlis (RM419 million).
This data was released following the Prime Minister, Dato’ Seri Anwar’s speech in Parliament yesterday. Anwar emphasized that, except for Selangor and Penang, the majority of states receive more federal allocations than their tax contributions. Thus, he rebutted the claim that some states are marginalized by the federal government.
He stated that Selangor contributed RM43.6 billion in taxes but received only RM15 billion in federal allocations; Penang contributed RM10.7 billion in taxes and received RM7.9 billion, reflecting the two states' strong economic foundations.
Meanwhile, the infographic also shows that during 2023 to 2025, Sarawak received an average of RM14 billion in federal expenditure per year, higher than its RM10 billion tax contribution.
The same trend also appears in most states. For example, Kelantan contributed only RM946 million in tax revenue but received RM8.9 billion in federal spending; Terengganu contributed RM1.2 billion in taxes but received RM7.8 billion in allocations; Pahang contributed RM3.4 billion in taxes but received RM11 billion in allocations; Perlis contributed RM419 million in taxes but received RM2.2 billion in federal expenditure.
In the parliamentary Q&A session, Anwar reiterated that the distribution of federal funding is based on the developmental needs of each state, rather than being determined solely by their tax contributions.
Based on this principle, the Madani Government’s federal allocations for states in 2026 will average 37% higher than in 2022, covering administrative expenses, development expenditure, and state government allocations.
Among these, Sarawak will receive RM15.1 billion in federal allocations for 2026, a 48% increase compared to RM10.2 billion in 2022.
Other states also experienced significant increases, including Penang (up 56%, from RM5 billion to RM7.8 billion); Kelantan (up 47%, from RM6.6 billion to RM9.7 billion); Johor (up 43%, from RM10.2 billion to RM14.6 billion). Kedah and Perak saw increases of 27% each — from RM7.7 billion to RM9.8 billion, and from RM8.2 billion to RM10.4 billion, respectively.
When formulating the 13th Malaysia Plan (13MP) and the 2026 fiscal budget, the government also included development priorities proposed by state governments in the new project planning, with an overall average approval rate of over 80%.
The above data show that Sarawak continues to play an important role in the national economy, and also reflect that the federal government is committed to narrowing regional development gaps through targeted spending, ensuring that states with relatively weaker economies receive the necessary support to accelerate their development.
During the same period, other states’ tax contributions were significantly lower, including Perak (RM4.8 billion), Melaka (RM3.9 billion), Kedah (RM3.7 billion), Pahang (RM3.4 billion), Negeri Sembilan (RM2.5 billion), Terengganu (RM1.2 billion), Kelantan (RM946 million), and Perlis (RM419 million).
This data was released following the Prime Minister, Dato’ Seri Anwar’s speech in Parliament yesterday. Anwar emphasized that, except for Selangor and Penang, the majority of states receive more federal allocations than their tax contributions. Thus, he rebutted the claim that some states are marginalized by the federal government.
He stated that Selangor contributed RM43.6 billion in taxes but received only RM15 billion in federal allocations; Penang contributed RM10.7 billion in taxes and received RM7.9 billion, reflecting the two states' strong economic foundations.
Meanwhile, the infographic also shows that during 2023 to 2025, Sarawak received an average of RM14 billion in federal expenditure per year, higher than its RM10 billion tax contribution.
The same trend also appears in most states. For example, Kelantan contributed only RM946 million in tax revenue but received RM8.9 billion in federal spending; Terengganu contributed RM1.2 billion in taxes but received RM7.8 billion in allocations; Pahang contributed RM3.4 billion in taxes but received RM11 billion in allocations; Perlis contributed RM419 million in taxes but received RM2.2 billion in federal expenditure.
In the parliamentary Q&A session, Anwar reiterated that the distribution of federal funding is based on the developmental needs of each state, rather than being determined solely by their tax contributions.
Based on this principle, the Madani Government’s federal allocations for states in 2026 will average 37% higher than in 2022, covering administrative expenses, development expenditure, and state government allocations.
Among these, Sarawak will receive RM15.1 billion in federal allocations for 2026, a 48% increase compared to RM10.2 billion in 2022.
Other states also experienced significant increases, including Penang (up 56%, from RM5 billion to RM7.8 billion); Kelantan (up 47%, from RM6.6 billion to RM9.7 billion); Johor (up 43%, from RM10.2 billion to RM14.6 billion). Kedah and Perak saw increases of 27% each — from RM7.7 billion to RM9.8 billion, and from RM8.2 billion to RM10.4 billion, respectively.
When formulating the 13th Malaysia Plan (13MP) and the 2026 fiscal budget, the government also included development priorities proposed by state governments in the new project planning, with an overall average approval rate of over 80%.
The above data show that Sarawak continues to play an important role in the national economy, and also reflect that the federal government is committed to narrowing regional development gaps through targeted spending, ensuring that states with relatively weaker economies receive the necessary support to accelerate their development.
