KOTA KINABALU: Sabah will receive a RM1.5 billion interim special grant this year as the Federal Government continues negotiations with the state over its long-standing 40 per cent revenue entitlement.
Prime Minister Datuk Seri Anwar Ibrahim said the Cabinet had agreed to increase the interim payment following a request by the Sabah Government for progress on resolving the constitutional claim.
The allocation will be incorporated into the 2027 Budget, which is scheduled to be tabled in Parliament in October.
“I have agreed to immediately increase it to RM1.5 billion beginning this year as an interim measure.
“Negotiations will continue, taking into account the country’s financial position as well as the terms of the original agreement,” he told reporters after the Malaysia Agreement 1963 (MA63) Implementation Action Council (MTPMA63) meeting here today (Sept 11).
Anwar said the payment was expected to be disbursed by the end of October or early November, subject to parliamentary approval of the Budget.
He said discussions on Sabah’s 40 per cent revenue entitlement would continue, with both sides working towards a longer-term settlement.
“The interim payment does not conclude the negotiations. We still have to determine the appropriate formula while considering the country’s financial position and the spirit of the original agreement,” he said.
Earlier, Sabah Chief Minister Datuk Seri Hajiji Noor urged the Federal Government to expedite efforts to resolve the issue.
“On behalf of the Sabah Government, we have requested due consideration, particularly in resolving the 40 per cent payment to Sabah. We hope the matter can be resolved and expedited,” he said.
The interim grant was among the key decisions reached during the MA63 council meeting, which focused on issues affecting Sabah and Sarawak, including special grants, parliamentary representation and the Borneonisation of the federal civil service.
