KUALA LUMPUR: The Federal Government is committed to delivering the outstanding RM900 million Special Grant to the Sabah State Government this year following the enforcement of the new Special Grant Order.
This commitment was confirmed in the Ministry of Finance’s (MOF) response to a parliamentary question posed by Datuk Seri Panglima Wilfred Madius Tangau, Member of Parliament for Tuaran, during Wednesday’s session in the Dewan Rakyat.
According to MOF, RM600 million from the Special Grant was already channeled to the Sabah State Government on 12 June 2026, with the remaining RM900 million set to be paid once the procedures related to the new Special Grant Order are finalized.
The response further highlighted that Sabah’s estimated annual revenue collection for the 2022-2024 period reached approximately RM10 billion annually, encompassing five percent petroleum revenue payments alongside other direct and indirect tax revenues.
“Sabah’s interim Special Grant has progressively increased from RM125.6 million in 2022 to RM300 million in 2023 and RM600 million in 2025. For 2026, this amount has been set at RM1.5 billion, as announced by the Prime Minister on 30 May.
“To enable the distribution of the remaining RM900 million, several processes and procedures between the Federal Government and Sabah State Government must be completed, including the drafting and gazetting of the Yang di-Pertuan Agong’s Order under Article 112D of the Federal Constitution.
“This new Order will replace the 2025 Special Grant Order for Sabah, namely P.U.(A) 271/2025,” MOF further explained.
The Ministry also reaffirmed its dedication to completing these procedures to ensure the outstanding special grant reaches Sabah within this calendar year.
Meanwhile, discussions regarding the Special Grant amount will continue through the Malaysia Agreement 1963 Implementation Action Council (MTPMA63), in accordance with Articles 112C and 112D of the Federal Constitution.
