TAWAU: The final amount for Sabah’s 40 per cent net revenue entitlement has yet to be finalised as discussions between the Federal and State governments regarding the payment formula, technical matters, and national fiscal capacity remain ongoing.
Minister in the Prime Minister’s Department (Sabah and Sarawak) Datuk Mustapha Sakmud (pic) said the assessment must consider the Federal Government’s current financial standing, even as some quarters call for calculations based on revenue collection figures from the Inland Revenue Board and Royal Malaysian Customs Department.
Speaking at a press conference at the Tawau Sports Complex on Sunday, he clarified that the RM1.5 billion interim special grant announced for Sabah is linked to the 40 per cent claim because both are deliberated under the Malaysia Agreement 1963 Implementation Action Council (MTPMA63).
Mustapha explained that the RM1.5 billion serves only as a provisional payment while the full quantum remains under active negotiation between the two governments.
He noted that broader global economic pressures—including rising fuel subsidy costs—influence national financial capabilities, though the current interim grant represents a notable increase over past allocations.
