PETALING JAYA: The Federal Government will maintain record allocations for Sabah and Sarawak in 2027, with Sabah receiving RM18.7 billion and Sarawak RM16.2 billion, as efforts continue to fulfil its commitments under the Malaysia Agreement 1963 (MA63).
Finance Minister Datuk Seri Anwar Ibrahim said MA63 must be viewed as part of the national pledge and a shared national responsibility, with efforts continuing to address longstanding issues involving the two states.
He said the special grant for Sabah and Sarawak had been increased three times under the MADANI Government, with the latest interim rate amounting to RM1.5 billion.
The payment is expected to be settled before the end of the year, while negotiations with both states continue to finalise a fair and sustainable annual formula.
Twelve MA63 matters have also been finalised under the MADANI Government. These include the appointment of permanent representatives from Sabah and Sarawak to the Inland Revenue Board (LHDN), the transfer of Bintulu Port to Sarawak, and the handover of MASWings to the state, which has since become AirBorneo.
Despite the transfer, the Federal Government will continue providing RM209 million in subsidies to benefit about 820,000 passengers in the interior. A further RM600 million will be provided to ensure continuity of electricity supply following the transfer of regulatory authority over electricity to Sabah.
Meanwhile, the government has agreed to double Public Service Department (JPA) scholarship offers for students from Sabah and Sarawak, creating opportunities for 4,200 students from the two states to pursue higher education each year.
