KUALA LUMPUR: The Federal Government has released RM600 million to Sabah from the approved Special Grant of RM1.5 billion, with the disbursement made on June 12, 2026.
The Ministry of Finance (MOF) explained that this amount forms part of a revised Special Grant agreement reached between the Federal and Sabah State Governments.
The remaining RM900 million will be transferred once the new Special Grant Order is officially enacted, which requires several procedural steps to be completed jointly by both levels of government.
This includes drafting and gazetting an order issued by the Yang di-Pertuan Agong, in line with Article 112D of the Federal Constitution.
MOF provided the details in a written reply to a parliamentary question raised by Datuk Seri Panglima Wilfred Madius Tangau (UPKO – Tuaran) during Monday’s session.
Madius had asked when the interim payment of RM1.5 billion would be processed and whether it corresponds to Sabah’s constitutional entitlement of 40%.
He also sought clarification on when the balance would be paid, or, if the payment was separate, when the full 40% share based on federal revenue would be fulfilled.
In response, MOF stated that discussions are ongoing through the Malaysia Agreement 1963 Action Council (MTPMA63) to formalize an enhanced Special Grant for Sabah, aligned with the 40% revenue formula and constitutional provisions, particularly Article 112D.
The ministry also noted that under the MADANI Government, the Special Grant to Sabah has seen progressive increases—from RM125.6 million in 2022 to RM300 million in 2023, rising to RM600 million in 2025, and now reaching RM1.5 billion as announced by the Prime Minister.
