Chief Minister Datuk Seri Panglima Hajiji Noor has welcomed the Federal Government’s decision to provide a RM1.5 billion interim special grant for Sabah, describing it as a positive step that will benefit the people of the state.
He said the state government hopes the allocation can be disbursed as soon as possible to ensure timely implementation of development and welfare initiatives across Sabah.
In a broader governance context, he also expressed support for the Prime Minister’s commitment that the Federal Government will uphold the Malaysia Agreement 1963 (MA63), which remains a key framework in federal-state relations.
Hajiji said the state administration will continue to work closely with Putrajaya to ensure all provisions under MA63, particularly the 40 per cent revenue entitlement, are fully honoured and implemented.
He also described the Federal Government under Datuk Seri Anwar Ibrahim as one that is committed to delivering on its promises, particularly in addressing long-standing issues involving Sabah’s rights.
The RM1.5 billion allocation was announced by the Prime Minister during the Sabah-level Kaamatan Festival 2026 at the Kadazandusun Cultural Association (KDCA) Unity Hall, marking an increase from the previous RM600 million interim grant.
Anwar said the increase serves as a temporary measure while discussions continue on the implementation mechanism for Sabah’s 40 per cent revenue entitlement as outlined under MA63.
He added that the actual figure for the entitlement still needs to be finalised through ongoing negotiations between federal and state authorities, with both sides working through designated committees.
In his remarks, Anwar said the matter has already been brought to the Cabinet and announced in Parliament, stressing that the main challenge now lies in establishing a clear and workable implementation framework.
He also said Second Finance Minister Datuk Seri Amir Hamzah Azizan and Treasury secretary-general Datuk Johan Mahmood Merican have been tasked with refining discussions with the Sabah government.
Responding to claims that Sabah has been neglected, the Prime Minister said federal revenue collected from the state stands at around RM10 billion annually, while development spending channelled back to Sabah is estimated at RM17 billion.
He added that subsidies for fuel and LPG in Sabah are expected to rise significantly this year, reflecting broader pressures from global supply conditions.
Anwar stressed that the disclosure of financial figures is intended to provide clarity to the public and counter misleading political narratives, rather than to dispute Sabah’s constitutional entitlement under MA63.
