“If the economy allows, I believe there should be no issue in increasing the special grant to Sabah,” the Sabah and Sarawak affairs minister was quoted by the Borneo Post as saying.

In 2025, the federal government doubled the special grants to Sabah and Sarawak to RM600 million each, two years after the grant was raised to RM300 million, of which Sabah received an increase of RM40 million while Sarawak was given a greater increase having previously received only RM16 million.

Separately, Mustapha expressed appreciation to Sabah assemblymen for debating the revenue claim at the recent state legislative assembly.

He said the federal government was actively reviewing the grant. “We are listening and examining this matter, and I have personally discussed it with the prime minister,” he said.

The matter was discussed at last week’s Cabinet meeting, with a decision “expected in due course”, he said.

Last year, the Kota Kinabalu High Court affirmed Sabah’s constitutional entitlement of a 40% share of net federal tax revenue earned in the state. Prime Minister Anwar Ibrahim has since said the government will honour Sabah’s entitlement.