Negotiations on Sabah’s special grant continue, with the next federal-state meeting set for December 19, as interim payments rise to RM600 million.
KUALA LUMPUR: The next negotiation session between the federal and Sabah governments regarding special grants is scheduled for December 19.
Finance Minister II Datuk Seri Amir Hamzah Azizan said both governments are committed to progressive discussions to ensure a smooth process.
He stated that a Special Grant Negotiation Committee was established following talks on November 17, 2025.
“The terms of reference used as a guide during the negotiations were also discussed,” he said during the winding-up of the debate on the Supply (Budget) Bill 2026 in the Dewan Negara.
Amir Hamzah said the federal government is committed to negotiating a better allocation rate through the Malaysia Agreement 1963 Implementation Action Council.
The special grant to Sabah was increased to RM300 million in 2023, he noted.
“Starting in 2025, the government has agreed to increase the amount of the special grant to RM600 million,” he added.
He explained this payment is an interim measure while a new method to determine future grants is formulated.
The federal government remains concerned about allocation needs in Sabah, he said.
Management and development allocation for the state continues to rise from RM14 billion in 2023 to RM17 billion in 2026.
This funding supports strategic projects like the Sabah Pan Borneo Highway and rural utility supplies.
It also funds link roads, rural roads, and social amenity facilities. – Bernama
