The interim special grant for Sabah has been increased to RM1.5 billion this year, compared with RM600 million previously, said Prime Minister Anwar Ibrahim.
He said the increase is a temporary measure pending the implementation mechanism for Sabah’s 40 percent revenue entitlement as stipulated under the Malaysia Agreement 1963 (MA63).
He added that the amount is only interim as the actual figure of the 40 percent revenue entitlement for Sabah still needs to be finalised through negotiations between the federal and state governments.
“On the 40 percent (Sabah revenue issue), although it is said to fall under financial arrangement 112D (the review mechanism under Article 112D of the Federal Constitution), in my view, it is settled. Do not dispute our decision to fulfil this promise.
“Whether it is implemented in June or December must be decided by both committees and then brought to the state government at the highest level, followed by negotiations between the federal and state governments,” he said.
He said this when officiating at the 2026 Sabah State-level Kaamatan Festival at Hongkod Koisaan, Kadazandusun Cultural Association (KDCA) in Penampang, Sabah, today.
Also present were Chief Minister Hajiji Noor, Deputy Chief Minister I Dr Joachim Gunsalam, who is also chairperson of the 2026 Sabah State-level Kaamatan Festival Main Organising Committee, and KDCA president Joseph Pairin Kitingan.
Anwar said the commitment regarding the 40 percent revenue payment has been brought to the cabinet and officially announced in Parliament, but the current challenge lies mainly in its implementation mechanism.
The prime minister said he has tasked Finance Minister II Amir Hamzah Azizan and Treasury secretary-general Johan Mahmood Merican to refine negotiations with the Sabah state government.
He added that the negotiations must be carried out carefully, as any decision involving MA63 has direct implications for Sabah, Sarawak, and the states in Peninsular Malaysia.
“This decision is linked to MA63. Therefore, every decision and its figures must be examined in detail. It takes some time, but it does not mean that the funds will not be provided,” he said.
Countering claims by certain quarters that Sabah continues to be neglected, Anwar said the federal government collects around RM10 billion annually in revenue from Sabah, but the development expenditure channelled back to the state amounts to RM17 billion.
The prime minister said the federal government also expects subsidies for petrol, diesel, and liquefied petroleum gas in Sabah to rise to RM3 billion this year, compared with RM1 billion last year, due to the ongoing global supply crisis.
He stressed that the disclosure of these figures is not intended to deny Sabah’s 40 percent revenue entitlement, but rather to provide a clearer picture to the public so they are not influenced by irresponsible political sentiment.
“Even amid soaring costs, the Madani government remains committed to maintaining fuel prices, particularly RON95 petrol, at the lowest levels in the world to safeguard the welfare and livelihoods of the people.
“Do not deny (the federal goverment’s efforts) and give the impression that we are being mistreated, treated as a stepchild, or made to suffer.
“This is petty politics. It will not foster unity. It is politics of misinformation, merely to seek support from certain ethnic groups, not based on facts,” he said.
- Bernama
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