Monday, 27 October 2025
"Thus, even well-intentioned policies like the RM 100 handout unintentionally expose this imbalance: spending follows population, but contribution follows resources. The result? -Borneo states give much more than they get."
When the Madani Government announced its nationwide RM 100 cash aid for all Malaysians aged 18 and above, most people welcomed it as a gesture of relief amid rising living costs. While the intention deserves appreciation, a closer look at the numbers reveals a familiar imbalance — one that speaks to deeper structural disparities between Peninsular Malaysia and the Borneo states of Sabah and Sarawak.
1. The Numbers Don’t Lie
If each adult receives RM 100, the total national payout amounts to RM 2.67 billion.
But when this spending is broken down by state population:
| Region | Population (2025 est.) | Adults 18+ (approx.) | Share of RM100 Spending |
|---|---|---|---|
| Peninsular Malaysia | 27.9 million | 20.1 million | ≈ RM 2.21 billion (83%) |
| Sabah | 3.76 million | 2.65 million | ≈ RM 265 million (10%) |
| Sarawak | 2.53 million | 1.91 million | ≈ RM 191 million (7%) |
| Total | 34.2 million | 26.66 million | RM 2.67 billion (100%) |
In other words, over 80 percent of the payout went to West Malaysia, while Sabah and Sarawak combined received less than 18 percent — simply reflecting their smaller population base.
⚖️ 2. The Other Side of the Equation: Revenue Contribution
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Oil & gas production:
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Sarawak supplies roughly 35–40 percent of Malaysia’s natural gas and a quarter of crude oil.
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Sabah adds another 10–15 percent of national petroleum output.(Sources: Petronas Annual Report 2024, The Star, 18 Oct 2025)
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Commodities:Palm oil, timber, and LNG exports from the Borneo states contribute billions annually to Malaysia’s trade balance — yet export duties and income taxes flow mainly to the federal treasury in Putrajaya.
In short, the regions that generate a major share of Malaysia’s natural wealth receive the smallest share of federal spending.
🧮 3. A Tale of Imbalance
This imbalance is not new. It’s embedded in decades of fiscal centralisation where the federal government collects most taxes and redistributes them unevenly. The 40 percent net revenue entitlement promised under Article 112C & 112D of the Federal Constitution — meant to ensure fair returns to Sabah and Sarawak — has never been fully honoured.
Thus, even well-intentioned policies like the RM 100 handout unintentionally expose this imbalance: spending follows population, but contribution follows resources. The result? -Borneo states give much more than they get.
🌏 4. A Call for Fairness
No one denies that nationwide assistance is important. But fiscal fairness requires recognition of contribution — not just equal distribution by headcount. For Sabahans and Sarawakians, gestures of equality ring hollow when federal policies continue to draw heavily from their land and seas, while returning far less in development and welfare spending.
If Malaysia is serious about the spirit of Madani, it must also be serious about restoring equity — starting with revenue rights under MA63.
#JusticeForSabah #SabahForSabahan #STAR
References
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Department of Statistics Malaysia — Current Population Estimates, 2025
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Petronas — Annual Report 2024
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The Star — Sabah leaders welcome High Court ruling on 40% net revenue
