Malaysia

Sarawak proposes special grant based on percentage of revenue generated

The state government intends to propose a new formula that ties the grant to Sarawak’s total income, particularly tax revenue, with a flexible mechanism that reflects the state’s current financial performance.

Updated 6 months ago · Published on 13 Feb 2026 7:22PM

Sarawak proposes special grant based on percentage of revenue generated
Abang Johari said a revenue-based approach would be fairer - February 13, 2026

SARAWAK has proposed that the special grant allocated to the state under Article 112D of the Federal Constitution be determined based on a percentage of revenue generated by the state, said Sarawak Premier Tan Sri Abang Johari Tun Openg.

He said the state government intends to propose a new formula that ties the grant to Sarawak’s total income, particularly tax revenue, with a flexible mechanism that reflects the state’s current financial performance.

“We propose, for example, that 20 per cent of Sarawak’s revenue be returned to the state. If revenue is high, the amount returned will be higher; if revenue is low, the amount will be lower. The figure is flexible so that the federal government can consider it.

“At present, the allocation is insufficient. We build houses, bridges, cancer centres, and undertake various development projects using our own resources. However, as Sarawak now has its own revenue base, we are not 100 per cent dependent on others (federal),” he said as reported by Bernama.

Elaborating further, Abang Johari said a revenue-based approach would be fairer, as the state government is currently bearing the bulk of development costs through its own financial resources.

“At this time, Sarawak has revenue, so what is wrong with us contributing? At other times, if our revenue drops, the federal government can assist us. This is for the people...the people’s interests come first,” he said.

On Wednesday, the Ministry of Finance (MOF) announced that the federal government would hold negotiations with the Sarawak government this year to review the special grant under Article 112D, including formulating a new method for calculating the allocation.

In a written reply published on the Parliament website, the ministry said the negotiations would take into account the state’s needs in covering the cost of services, as well as the federal government’s financial position, in line with Article 112D of the Federal Constitution.

Article 112D stipulates that the amount of special grants for Sarawak and Sabah must be reviewed every five years. – February 13, 2026

Related News

Malaysia / 13h

Haze in Serian enters emergency phase

Malaysia / 2d

Malaysia Day celebration to move indoors amid Sarawak haze

Malaysia / 4d

Haze: Emergency only in areas with API of 500, not the whole of Sarawak

Malaysia / 4d

Sarawak: EC to display proposed 17 new state assembly seats tomorrow

Malaysia / 4d

Air quality in 4 Sarawak areas hit hazardous levels

Opinion / 5d

Merdeka: This is our Malaysia – and you will not take it from us

Spotlight

Malaysia

Puteri Umno distances itself from viral Threads post

By Alfian Z.M. Tahir

Malaysia

MACC drops orange detention attire for court remand cases after PM’s call

World

Man jailed six years for keeping Indonesian woman as slave in Melbourne home

Malaysia

Emergency declared in Serian as haze reaches hazardous levels (UPDATED)

Malaysia

Haze in Serian enters emergency phase

Malaysia

Death sentence for deaf, mute man who killed family of four upheld

Malaysia

Retired army officer with Datuk title charged with alleged sexual assault of golf caddie

Heritage

Penang first state to recognise Hungry Ghost Festival, cemeteries as heritage

You may be interested

Malaysia

Ministries must spend according to set budgets - KSN

Malaysia

IT officer loses RM20,000 in TikTok SPayLater scam

Malaysia

Anwar holds key to revival of two constitutional reform bills

Malaysia

Anwar: ‘Government stable, GE16 timing up to me’

Malaysia

Former Tabung Haji COO’s charges put off after hospital admission

By Alfian Z.M. Tahir

Malaysia

Indian community will never be marginalised in development agenda – PM Anwar

Malaysia

Puteri Umno distances itself from viral Threads post

By Alfian Z.M. Tahir

Malaysia

Malaysians held abroad help crack cross-border drug networks - Home Minister