KUALA LUMPUR – Deputy Secretary General Keadilan, Sivamalar Genapathy has welcomed the federal government’s decision to increase grants to state governments to RM10.5 billion in 2026, describing it as a positive step towards strengthening cooperation between the federal and state administrations.
Sivamalar said the announcement by Prime Minister Datuk Seri Anwar Ibrahim reflects the Madani government’s commitment to ensuring more balanced development across all states.
“The increase in federal grants demonstrates the government’s commitment to strengthening cooperation between the federal and state governments while ensuring that development is distributed more fairly across the country,” she said in a statement today.
She noted that federal support to the states has steadily increased over the past few years, rising from RM8.1 billion in 2022 to RM10.3 billion in 2025, and is now projected to reach RM10.5 billion in 2026.
According to Sivamalar, one of the key factors behind the increase is the revision of the Capitation Grant rates, which had not been reviewed since 2002.
“The revised and more progressive formula will allow states to receive allocations that better reflect their population size as well as their growing administrative and development needs,” she said.
Sivamalar also welcomed the government’s decision to channel 100 per cent of tourism tax revenue to the states, compared with the previous 50 per cent allocation.
She said the move would help strengthen the tourism sector, particularly as Malaysia prepares for Visit Malaysia Year 2026, enabling states to enhance tourism promotion and improve related infrastructure.
In addition, she noted that the government had expanded the scope of the State Road Maintenance Grant, which now includes drainage improvements and the procurement of modular bridges such as Bailey bridges.
“These measures will help strengthen infrastructure and connectivity at the state level while supporting the overall development agenda of the country,” she said.
Sivamalar added that the initiatives demonstrate the Madani government’s commitment to ensuring that development benefits all states while maintaining strong cooperation between the federal and state governments regardless of political differences.
“Under the leadership of Prime Minister Datuk Seri Anwar Ibrahim, the Madani government continues to implement reforms and policies that promote balanced development, strengthen national institutions and improve the well-being of the rakyat,” she said. -MalayaDailyToday
