PENAMPANG — 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.
The increase, however, is a temporary measure pending final agreement between the state and federal governments on a mechanism to determine Sabah’s claim dating back to 1974 for 40 per cent of its revenue entitlement under the Malaysia Agreement 1963 (MA63).
Anwar said the actual sum of the 40 per cent revenue entitlement for Sabah still needs to be finalised through negotiations.
“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 when officiating at the 2026 Sabah State-level Kaamatan Festival at Hongkod Koisaan, Kadazandusun Cultural Association (KDCA) here today, Bernama reports.
Also present were Sabah 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 federal government had already agreed and promised to fulfil Sabah’s request for the 40 percent revenue entitlement as it is in accordance with the MA63, which Putrajaya recognises.
The issue has been brought to the Cabinet and officially announced in Parliament, but the current challenge lies mainly in its implementation mechanism, he said.
Second Finance Minister Datuk Seri Amir Hamzah Azizan and Treasury secretary-general Datuk Johan Mahmood Merican to refine negotiations with the Sabah state government, Anwar added.
“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.
Anwar urged for unity between Sabah, Sarawak which is also celebrating the Gawai festival, and Peninsula Malaysia, stressing that the federal government has never sidelined the two Borneo states.
“Do not deny (the federal goverment’s efforts) and give the impression that we are being mistreated, treated as a stepchild, or made to suffer. This is petty politics. It will not foster unity. It is politics of misinformation, merely to seek support from certain ethnic groups, not based on facts,” the prime minister said. – May 30, 2026