By Fadzli Ramli
KOTA KINABALU: The increase in Sabah’s special interim grant payment to RM1.5 billion a year reflects the strong ties and ongoing negotiations between the Federal Government and the Sabah state government in strengthening the state’s development.
The announcement by Prime Minister Datuk Seri Anwar Ibrahim is also seen as an indication that the negotiation-based approach between the Federal Government and the state government under Chief Minister Datuk Seri Hajiji Noor is capable of delivering more tangible benefits to the people.
Commenting on the development, economist Dr Awang Faisal Assyiffa said the performance of an administration should be measured based on tangible outcomes supported by data and concrete achievements, rather than being influenced by political rhetoric or current polemics.
The Chief Executive of Cyberjaya College Kota Kinabalu said records over the past six years showed that Sabah’s special grant had increased nearly 28-fold, from RM53.4 million until 2020 to RM1.5 billion annually in 2026.
“This achievement is considered one of the most significant fiscal milestones in Sabah’s modern history, creating greater fiscal space to finance infrastructure development, improve education quality, healthcare services and expand the state’s utility network,” he told Bernama.
Last Saturday, Anwar announced the increase while officiating the 2026 Sabah-level Kaamatan Festival in Penampang, describing it as an interim measure pending the formulation of a mechanism for the 40 per cent revenue entitlement for Sabah.
Awang Faisal said the increase also provided context to the Prime Minister’s praise of Hajiji’s leadership style, which focuses more on action and outcomes.
“This close synergy shows that Hajiji’s approach of focusing on quiet negotiations is well respected by the Prime Minister, reflecting a high level of political understanding between both leaders for the benefit of Sabah,” he said.
Meanwhile, local leader Datuk Jerry Ambuting Mohd Said said the increase in the interim special grant demonstrated the Federal Government’s political commitment to working with the state government in resolving state rights issues in a fair and responsible manner.
“This increase is highly meaningful in strengthening the state’s financial position and accelerating the implementation of various critical infrastructure projects such as clean water supply, roads, bridges, education and healthcare,” he said.
The former president of the Sabah branch of the Association of Honorary Members of the Malaysia Volunteers Corps Department (RELA) said Hajiji’s stance of prioritising constructive cooperation with Putrajaya over confrontation showed that strong relations between both sides could bring long-term benefits to Sabah.
Sabah State Farmers’ Organisation (PPNS) chairman Datuk Mohd Nazri Abdullah said the additional fiscal allocation was expected to significantly boost the development of the agriculture and agro-food sector across the state.
He said the interim funds would provide a wider scope to finance critical projects, including irrigation system upgrades, rural agricultural infrastructure, and the provision of modern technology and training to improve productivity.
“The agro-food sector is one of Sabah’s key economic drivers, and this continued support is crucial to increase production, empower agricultural entrepreneurs and raise the income of farming communities in rural areas,” he said.
He added that strengthening the fund through close cooperation between the Federal and state governments would not only drive local economic growth but also strengthen national food security and supply resilience.
Bingkor Community Welfare Association chairman Yazid Mohd Hasnan Tawik @ Charles said the RM1.5 billion interim special grant brings new hope to rural communities in narrowing the development gap and ensuring more balanced prosperity at the grassroots level.
He said the allocation, resulting from close ties between the Federal and state governments, should be channelled towards accelerating basic infrastructure and utility projects urgently needed in rural areas, particularly roads, bridges and clean water supply.
“People in rural areas are hopeful that the outcome of these negotiations will be quickly translated into rapid physical development and expanded local economic opportunities to improve living standards and community welfare,” he said.
Yazid also expressed confidence that the momentum of good relations demonstrated during the Kaamatan Festival would continue to strengthen negotiations on Sabah’s 40 per cent revenue entitlement under the spirit of the Malaysia Agreement 1963 (MA63).
He said continued efforts were important to ensure development benefits reached the people of Sabah.
— BERNAMA
