Hajiji welcomes RM1.5b interim special grant for Sabah, wants swift disbursement

“KOTA KINABALU, May 31 — Sabah Chief Minister Datuk Seri Panglima Hajiji Noor has welcomed the RM1.5 billion interim special grant for the state announced by Prime Minister Datuk Seri Anwar Ibrahim yesterday. “Sabah hopes the funds will be disbursed as soon as possible for the benefit of the people of Sabah,” he said. The Chief Minister also welcomed the Prime Minister’s assurance during the opening of the Pesta Kaamatan celebration that the Federal Government would honour the Malaysia Agreement 1963 (MA63). “It proves that the Federal Government under Anwar is a responsible government that walks the talk. “The state government will work closely with the federal government to ensure all the provisions under MA63, especially the 40 per cent special grant, are fulfilled,” he said. Anwar, when officiating at the Sabah-level Kaamatan Festival 2026 at Hongkod Koisaan, the Kadazandusun Cultural Association (KDCA) Unity Hall, yesterday, announced that the interim special grant for Sabah had been increased to RM1.5 billion this year from RM600 million previously. He said the increase is a temporary measure pending the implementation mechanism for Sabah’s 40 per cent revenue entitlement as stipulated under the Malaysia Agreement 1963 (MA63). He added that the amount is only interim as the actual figure of the 40 per cent revenue entitlement for Sabah still needs to be finalised through negotiations between the federal and state governments. “On the 40 per cent (Sabah revenue issue), although it is said to fall under financial arrangement 112D (the review mechanism under Article 112D of the Federal Constitution), in my view it is settled. Do not dispute our decision to fulfil this promise. “Whether it is implemented in June or December must be decided by both committees and then brought to the state government at the highest level, followed by negotiations between the federal and state governments,” he said. Anwar said the commitment regarding the 40 per cent revenue payment has been brought to the Cabinet and officially announced in Parliament, but the current challenge lies mainly in its implementation mechanism. The Prime Minister said he has tasked Second Finance Minister Datuk Seri Amir Hamzah Azizan and Treasury secretary-general Datuk Johan Mahmood Merican to refine negotiations with the Sabah state government. Countering claims by certain quarters that Sabah continues to be neglected, Anwar said the federal government collects around RM10 billion annually in revenue from Sabah, while development expenditure channelled back to the state amounts to a higher figure of RM17 billion. The Prime Minister said the federal government also expects subsidies for petrol, diesel and liquefied petroleum gas in Sabah to rise to RM3 billion this year, compared with RM1 billion last year, following the ongoing global supply crisis. He stressed that the disclosure of these figures is not intended to deny Sabah’s 40 per cent revenue entitlement, but rather to provide a clearer picture to the public so they are not influenced by irresponsible political sentiment. — The Borneo Post

Summary generated from the RSS feed of Malay Mail Education. All article rights belong to the original publisher. Click through to read the full piece on www.malaymail.com/news/malaysia.