Kota kinabalu: The interim special grant for Sabah has been increased to RM1.5 billion this year, up from the previous RM600 million, as announced by Prime Minister Datuk Seri Anwar Ibrahim. This adjustment serves as a temporary solution while the implementation mechanism for Sabah's 40 percent revenue entitlement under the Malaysia Agreement 1963 (MA63) is being developed.
According to BERNAMA News Agency, the Prime Minister emphasized that the grant increase is provisional, as the exact amount of the 40 percent revenue entitlement for Sabah remains to be determined through discussions between the federal and state governments. Anwar stated, "On the 40 percent (Sabah revenue issue), although it is said to fall under financial arrangement 112D, in my view, it is settled. Do not dispute our decision to fulfill this promise."
Anwar made these remarks during the officiation of the 2026 Sabah State-level Kaamatan Festival at Hongkod Koisaan, Kadazandusun Cultural Association (KDCA). The event was attended by prominent figures, including Chief Minister Datuk Seri Hajiji Noor and KDCA president Tan Sri Joseph Pairin Kitingan.
The Prime Minister noted that the commitment to the 40 percent revenue payment has been presented to the Cabinet and officially disclosed in Parliament. However, the main challenge currently lies in establishing its implementation mechanism. Anwar has tasked Second Finance Minister Datuk Seri Amir Hamzah Azizan and Treasury secretary-general Datuk Johan Mahmood Merican with refining the negotiations with Sabah's state government.
He stressed that these negotiations must be conducted thoroughly, as any decisions related to MA63 have direct implications for Sabah, Sarawak, and Peninsular Malaysia. Anwar remarked, "This decision is linked to the 1963 agreement (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."
Addressing claims that Sabah is being neglected, Anwar highlighted that the federal government collects approximately RM10 billion annually in revenue from Sabah, while development expenditure allocated back to the state exceeds this amount, reaching RM17 billion. Furthermore, the federal government anticipates that subsidies for petrol, diesel, and liquefied petroleum gas in Sabah will rise to RM3 billion this year, compared to RM1 billion last year, due to the ongoing global supply crisis.
Anwar reiterated that these disclosures are not intended to undermine Sabah's 40 percent revenue entitlement but to offer a clearer perspective to the public, ensuring they are not swayed by irresponsible political rhetoric. He concluded, "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."