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KUALA LUMPUR – Sabah will see a 470% increase in its special allocation this year, from RM26.7 million to RM125.6 million, following a consensus between the federal government and the state government.
In a statement today issued by Prime Minister Datuk Seri Ismail Sabri Yaakob and Sabah Chief Minister Datuk Seri Hajiji Md Noor, the amount for the special allocation will see another increase for years 2023 to 2026, based on agreed rates.
This comes after Putrajaya and Sabah government came to an agreement over the special allocation provided for under Article 112D of the federal constitution.
They said the agreement is historical given the revaluation of special allocation to Sabah was last performed in 1969.
Meanwhile, federal and state governments also agreed on continued talks over the 40% claim from Sabah’s revenues.
“The federal and Sabah government would continue studies over the special allocation under Article 112D to obtain a new amount that balances Sabah’s needs without compromising Putrajaya’s financial position.
“If a new amount is agreed by both sides before 2026, the new amount will be used to replace the special allocation for Sabah which begins this year.”
Additionally, it was agreed that Sabah has a right to rely on the original formula for the special allocation as provided for under the constitution.
The revaluation of the special allocation, the statement said, includes the right of both governments to refer matters to an independent interpreter if no agreement is reached as stated in Article 112D(6) of the federal constitution.
“Both governments also agree to share data concerning Putrajaya’s financial position and the Sabah government’s needs, which would be taken into consideration when reevaluating the special allocation amount.” – The Vibes, April 14, 2022
