KUALA LUMPUR: The MADANI Government has reaffirmed its commitment to Sabah’s prosperity by doubling the Federal Special Grant to a record 600 million ringgit for 2025.
Prime Minister Datuk Seri Anwar Ibrahim confirmed the full payment of 600 million ringgit was made on September 10.
This payment followed an agreement between the federal and Sabah governments after a review under Article 112D of the Federal Constitution.
Anwar described the increased grant as an interim measure during a parliamentary briefing on the government’s stand.
He explained that both governments are currently formulating a new method for future grant calculations.
The Prime Minister noted that special grant reviews are conducted periodically and were gazetted in 2022, 2023, and 2025.
These reviews consider the federal government’s financial position and the need to cover service costs in Sabah.
The special grant had remained at 26.7 million ringgit since 1969 before recent increases.
It was raised to 53.4 million ringgit in 2019 and then to 125.6 million ringgit in 2022.
The grant was further increased to 300 million ringgit in 2023 prior to this latest record allocation.
Anwar, who is also Finance Minister, said that under Budget 2026, development allocation for Sabah has increased to almost RM7 billion, the highest among all states.
He said several key projects listed under the 13th Malaysia Plan (13MP) take into account the priorities outlined by the Sabah government, including the Sabah Heart Centre in Kota Kinabalu (RM125 million), the Kalabakan–Simanggaris Road (RM416 million) and the Southern Link Phase 1A Electricity Transmission Line (RM200 million).
In addition, he said the MADANI Government has also resumed implementation of the Pan Borneo Highway Sabah Phase 1B project, with a total cost of RM14 billion, comprising RM5 billion in development allocation and RM9 billion in loans.
“Since 2024, the government has also provided RM1 billion in financing for Sabah’s water projects, which are expected to be completed next year,” he said. – Bernama
