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25% increase in per capita grants for Malaysian states from 2026

The Sun Local

KOTA BHARU: The federal government has approved a 25 per cent increase in per capita grants for all states, amounting to an additional RM548 million starting in 2026. The announcement was made during the Kelantan State Legislative Assembly session today.

Kelantan Menteri Besar Datuk Mohd Nassuruddin Daud confirmed the decision, stating that the adjustment was agreed upon during last year’s meeting of Menteris Besar and Chief Ministers. “On behalf of Kelantan, I proposed a review of the per capita grant due to rising costs, and the motion received support from other state leaders and Prime Minister Datuk Seri Anwar Ibrahim,“ he said.

The revised rates will see allocations rise to RM102 per person for the first 100,000 residents, up from RM72 previously. Subsequent tiers include RM14 for the next 500,000 (from RM10.20), RM13.50 for another 500,000 (from RM10.40), and RM13 for remaining individuals (from RM11.40).

Mohd Nassuruddin also disclosed that Kelantan received RM291.06 million in per capita grants between 2015 and 2025. Annual figures showed a steady increase, from RM24.75 million in 2015 to RM28.9 million in 2025.

The adjustment aims to address financial pressures faced by states amid rising living costs. The National Finance Council’s approval ensures all states will benefit from the revised allocations. – Bernama

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