PENAMPANG, May 30 — The interim special grant for Sabah has been increased to RM1.5 billion this year, compared with RM600 million previously, said Prime Minister Datuk Seri Anwar Ibrahim.
He said the increase is a temporary measure pending the implementation mechanism for Sabah’s 40 per cent 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 per cent revenue entitlement for Sabah still needs to be finalised through negotiations between the federal and state governments.
“On the 40 per cent (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) here today.
Also present were Chief Minister Datuk Seri Hajiji Noor, Deputy Chief Minister I Datuk Seri Dr Joachim Gunsalam, who is also chairman of the 2026 Sabah State-level Kaamatan Festival Main Organising Committee, and KDCA president Tan Sri Joseph Pairin Kitingan.
Anwar said the commitment regarding the 40 per cent 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 Second Finance Minister Datuk Seri Amir Hamzah Azizan and Treasury secretary-general Datuk 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 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,” he said.
