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THE Federal Government’s decision to raise Sabah’s Special Grant to RM600 million from 2025 was not made for political expediency, but in recognition of the state’s urgent need for improved basic infrastructure and balanced development, Prime Minister Datuk Seri Anwar Ibrahim has said.
“The increased revenue return to Sabah is not a matter of politics or charity. It is about responsibility and the need to ensure fairness to all states,” Anwar stated during the Prime Minister’s Integrity Mandate event on Wednesday.
Under the Malaysia Madani framework, which emphasises social justice and integrity, the grant reflects a commitment to bridging the development gap between Sabah and Peninsular Malaysia.
The grant—formally known as the Federal Special Grant under Article 112D of the Federal Constitution—has been progressively increased from RM126 million previously, to RM300 million in 2023, and now to RM600 million, which was fully disbursed on 10 September 2025.
“This RM600 million figure is an interim rate while both the Federal and Sabah governments work on a new formula for determining future entitlements,” Anwar said during a government briefing session in the Dewan Rakyat.
He noted that the revised amount follows a constitutional review process and reflects both the Federal Government’s fiscal capacity and Sabah’s actual administrative needs.
The historical increase is significant: the grant had remained stagnant at RM26.7 million from 1969 until it was raised to RM53.4 million in 2019, RM125.6 million in 2022, and RM300 million in 2023.
The Prime Minister reaffirmed his government’s continued commitment to Sabah’s prosperity through fair, needs-based distribution—consistent with the broader goals of a just and equitable Malaysia. - October 22, 2025
