Kuala Lumpur: The Federal Government paid RM600 million of the RM1.5 billion Special Grant to Sabah on June 12.
The remaining RM900 million will be released once a new Special Grant Order takes effect, requiring a Yang di-Pertuan Agong Order to be gazetted under Article 112D of the Federal Constitution.
This was stated by the Ministry of Finance in response to a question from Tuaran Member of Parliament Datuk Seri Wilfred Madius Tangau at the Dewan Rakyat.
Madius asked when the RM1.5 billion would be paid and whether it counted toward Sabah’s 40 per cent constitutional entitlement.
The Ministry said negotiations are ongoing through the Malaysia Agreement 1963 (MA63) Implementation Action Council to improve the Special Grant based on the 40 per cent federal revenue formula, in line with Article 112D.
The grant has grown steadily under the Madani Government, from RM125.6 million in 2022 to RM300 million in 2023, RM600 million in 2025, and now RM1.5 billion, as announced by the Prime Minister on May 30.
The Ministry said both governments are still working out a new formula for future grants based on Sabah’s financial needs and that the 40 per cent formula must be implemented lawfully and in line with the spirit of MA63.
