Malaysia

Record RM1.5 billion grant signals new federal commitment to Sabah

A youth leader argues that the unprecedented increase reflects a willingness to translate long-standing Malaysia Agreement 1963 commitments into concrete financial action

Updated 4 months ago · Published on 31 May 2026 10:17AM

Record RM1.5 billion grant signals new federal commitment to Sabah
Sabahans should recognise the significance of Prime Minister Datuk Seri Anwar Ibrahim’s decision to approve the largest interim special grant ever allocated to the state - May 31, 2026

THE federal government's decision to raise Sabah's interim special grant to a record RM1.5 billion has been hailed as evidence of a stronger commitment towards addressing the state's long-standing demands under the Malaysia Agreement 1963 (MA63), with a Sabah youth leader urging the public to acknowledge the significance of the move.

Sabah Youth Council deputy president Mohd Nur Hilmie Milus said that while challenges remain in achieving the state's full 40 per cent revenue entitlement, the latest increase demonstrates political courage and commitment from the federal administration led by Prime Minister Datuk Seri Anwar Ibrahim.

According to Mohd Nur Hilmie, the gradual increase in the interim grant over recent years illustrates a clear shift in Putrajaya's approach towards Sabah's fiscal claims.

"This is not merely about politicising figures, but about the political courage to recognise that Sabah deserves fairer treatment within the framework of the Malaysian Federation," he told Bernama.

His remarks came after Anwar announced during the Sabah-level Kaamatan Festival 2026 celebrations that the interim special grant for Sabah would be increased from RM600 million to RM1.5 billion while negotiations continue on the implementation mechanism for the state's constitutional 40 per cent revenue entitlement under MA63.

Mohd Nur Hilmie said every prime minister had contributed differently to Sabah's development agenda, but argued that Anwar had distinguished himself by converting years of discussions and negotiations into substantial policy and financial decisions.

The latest allocation represents a dramatic increase from the amounts previously received by the state. Before the change of federal administration in 2022, Sabah reportedly received approximately RM26.7 million annually for decades.

The figure subsequently rose to RM125.6 million in 2022, RM300 million in both 2023 and 2024, RM600 million in 2025 and 2026, before reaching RM1.5 billion this year.

Mohd Nur Hilmie also credited Chief Minister Datuk Seri Hajiji Noor for helping secure the breakthrough, describing his approach as one based on constructive engagement and strategic cooperation with the federal government while remaining firm on Sabah's rights.

He said the development demonstrated that meaningful progress on MA63 issues could be achieved through mature negotiations rather than constant political confrontation between Sabah and Putrajaya.

According to him, stable federal-state relations have delivered more tangible outcomes for Sabahans than a strategy centred solely on public disputes and political rhetoric.

At the same time, he acknowledged that many longstanding issues affecting Sabah remain unresolved, particularly in critical areas such as water and electricity supply, road connectivity, education infrastructure and healthcare services.

Nevertheless, he called on the public to assess fairly the efforts currently being undertaken by both federal and state leaders to address challenges that have persisted for decades.

"Do not only look at who speaks the loudest about Sabah. Also look at who truly has the courage to bring Sabah's issues to the national decision-making table. Ultimately, the struggle for MA63 is not about political slogans; it is about dignity, justice and Sabah's future," he said.

The comments come amid renewed debate over Sabah's constitutional rights and revenue claims, with the record grant increase likely to intensify scrutiny of ongoing negotiations between Putrajaya and the state government over the full implementation of MA63 provisions. - May 31, 2026

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