Kuala lumpur: The next negotiation session between the federal government and the Sabah government regarding special grants is scheduled to be held on Dec 19, said Finance Minister II Datuk Seri Amir Hamzah Azizan. He mentioned that both governments have expressed their commitment to conduct discussions progressively to ensure a smooth negotiation process.

According to BERNAMA News Agency, the federal government continued negotiations with the Sabah government on Nov 17, 2025, and established a Special Grant Negotiation Committee between the two parties. The terms of reference used as a guide during the negotiations were also discussed, as stated by Amir Hamzah while winding up the debate session on the Supply (Budget) Bill 2026 at the Dewan Negara today.

Amir Hamzah noted that the federal government, through the Malaysia Agreement 1963 Implementation Action Council, is committed to negotiating a better rate for the special allocation, aiming to increase the amount allocated to Sabah. In 2023, Sabah's special grant was increased to RM300 million, and starting in 2025, it will be raised to RM600 million. This is an interim measure while a new method for determining future special grants is being formulated.

According to Amir Hamzah, the federal government remains attentive to Sabah's allocation needs, with management and development allocations increasing from RM14 billion in 2023 to RM17 billion in 2026. These funds are directed towards implementing strategic developments such as the Sabah Pan Borneo Highway, rural water and electricity supplies, link roads, rural roads, and social amenity facilities.