Kuala Lumpur: The Federal Government remains committed to disbursing the remaining RM900 million in Special Grant to Sabah this year once the new Special Grant Order takes effect, the Dewan Rakyat was told on Wednesday.
In a written reply to Tuaran Member of Parliament Datuk Seri Wilfred Madius Tangau, the Ministry of Finance (MOF) said RM600 million had already been channelled to the Sabah Government on 12 June 2026, with the remaining sum to follow upon the gazetting of the Yang di-Pertuan Agong’s Order under Article 112D of the Federal Constitution.
The ministry noted that total revenue collected in Sabah between 2022 and 2024 is estimated at around RM10 billion annually—encompassing the five per cent petroleum cash payment alongside direct and indirect taxes—while interim Special Grants have increased progressively to reach RM1.5 billion for 2026.
MOF added that negotiations regarding the long-term Special Grant amount will continue through the Malaysia Agreement 1963 Implementation Action Council (MTPMA63) in line with Articles 112C and 112D of the Federal Constitution.
Madius, however, questioned the response for failing to detail the calculation formula for net federal revenue derived from Sabah or provide a specific timeline to implement the state’s 40 per cent constitutional entitlement.
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