Sabah expects RM900 million balance of federal special grant by year-end

SABAH expects to receive the remaining RM900 million balance from a RM1.5 billion federal interim special grant by the end of this year, according to state Finance Minister Datuk Seri Masidi Manjun.

Masidi said the federal and state governments were actively engaging in discussions to ensure the outstanding allocation reaches Sabah within the targeted timeframe.

“We are having a meeting on Monday to discuss issues relating to the Malaysia Agreement 1963 (MA63) as well as the 40% revenue entitlement, and I am sure the remaining funds from the recent RM1.5 billion announced would be paid,” he said.

He was speaking after attending the Sabah-level National Day and Fly the Flag campaign launch in Kota Kinabalu on Saturday.

Prime Minister Datuk Seri Anwar Ibrahim had announced the RM1.5 billion interim special grant during the Kaamatan Festival in May, with RM600 million of the allocation having already been disbursed.

The remaining RM900 million is expected to provide additional fiscal support for Sabah as discussions continue on broader issues concerning MA63 implementation and the state’s constitutional financial rights.

The negotiations are part of ongoing efforts between the federal and Sabah governments to address longstanding matters, including the state’s claim to a 40% share of net federal revenue derived from Sabah. - August 1, 2026