Sabah gets RM1.5bil interim allocation as 40% revenue talks continue

Sabah gets RM1.5bil interim allocation as 40% revenue talks continue

Prime Minister Anwar Ibrahim says his administration remains committed to fulfilling the state’s revenue claim and is currently working out the details of its implementation.

anwar ibrahim
Prime Minister Anwar Ibrahim said the government does not intend to delay the process but wants to ensure that every decision is made carefully and responsibly. (Bernama pic)
PETALING JAYA:
Prime Minister Anwar Ibrahim today announced that the interim allocation to Sabah will be increased to RM1.5 billion from RM600 million pending the finalisation of the state’s constitutional claim to a 40% revenue entitlement.

According to BuletinTV3, Anwar said his administration remains committed to fulfilling the claim under the 1963 Malaysia Agreement and is working out the details of its implementation.

“The Madani government has established that the implementation of Sabah’s 40% entitlement is a policy that must be carried out. There is no longer any debate about whether it should be implemented.

“What remains is to refine the mechanism and method of implementation,” he said when officiating the 2026 Sabah Kaamatan Festival at the Hongkod Koisaan Hall of the Kadazandusun Cultural Association in Penampang.

Anwar said the government does not intend to delay the process but wants to ensure that every decision is made carefully and responsibly.

He said detailed discussions are continuing, as any decision involving MA63 would have broader implications for federal-state relations and for other states.

“This interim payment is not the final solution, but it demonstrates the government’s commitment to fulfilling its responsibilities to Sabah while the negotiation process is concluded in the near future,” he said.

In April, the Court of Appeal allowed the federal government’s application for a stay of execution on a High Court order regarding Sabah’s entitlement to a 40% share of net federal revenue derived from the state, pending the disposal of an appeal.

On Thursday, Gabungan Rakyat Sabah secretary-general Armizan Mohd Ali said Anwar’s acknowledgement of Sabah’s constitutional right to the 40% revenue entitlement has strengthened the state government’s push to accelerate development initiatives.

He said although the case concerning Sabah’s claim is still pending before the Court of Appeal, GRS has maintained a firm stance that the latest review of the revenue entitlement rate under Articles 112C and 112D of the Federal Constitution must be carried out this year.

Armizan, who is also the domestic trade and cost of living minister, said the increase in Sabah’s revenue entitlement – from just RM26.7 million annually between 1974 and 2021 to RM600 million a year – had already enabled the state government to roll out several new initiatives.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.