SABAH is set to receive the remaining RM900 million of its RM1.5 billion interim special grant by late October or early November, Prime Minister Datuk Seri Anwar Ibrahim said today.
He said the payment would follow the tabling of the relevant Cabinet paper after Parliament resumes in October, while negotiations over Sabah’s 40 per cent entitlement to net Federal revenue derived from the state would continue.
“I have agreed that the interim payment be increased immediately to RM1.5 billion from this year. Negotiations will continue, taking into account the country’s financial position as provided for under the original agreement.
“We will wait for the October parliamentary sitting to finalise the relevant paper before the full RM1.5 billion payment is completed this year, possibly by late October or early November,” he said at a press conference after chairing the 2026 Malaysia Agreement 1963 Implementation Action Council (MTPMA63) meeting at the Sabah International Convention Centre (SICC) on Kota Kinabalu.
Anwar said the RM1.5 billion was an interim payment and did not constitute a final settlement of Sabah’s claim, with the final formula and amount to be determined through further negotiations.
Sabah Chief Minister Datuk Seri Hajiji Noor said the state government had raised the matter during the MTPMA63 meeting to seek an expedited resolution of its 40 per cent entitlement.
“The Sabah Government also sought consideration, particularly to resolve the payment of Sabah’s 40 per cent entitlement. We hope the matter will receive due consideration and can be resolved and expedited,” he said.
For Sarawak, Anwar said although the state was not subject to the same constitutional provision as Sabah, a similar approach should be considered in determining its special grant.
He said Sarawak had proposed a clear formula taking into account the country’s financial position and capacity, including setting minimum and maximum rates for consideration.
Anwar said the Finance Ministry and Sarawak’s Ministry of Finance had been instructed to discuss the proposed formula, adding that he hoped an interim measure for Sarawak could be announced during Malaysia Day celebrations in Kuching on Sept 16.
“Although Sarawak is not subject to the same constitutional provision as Sabah, the same spirit should be considered.
“I hope an interim measure can be announced on Malaysia Day in Kuching, while the formula for the special grant will be discussed together, taking into account the country’s financial capacity,” he said.
Anwar also stressed that implementation of MA63 must be treated as a national policy, commitment and narrative rather than as a sectoral issue or special treatment for Sabah and Sarawak.
Sabah received RM600 million on June 12 and is awaiting the remaining RM900 million of the RM1.5 billion interim special grant. - September 11, 2026
