Sabah to channel RM1.5bil interim payment into infrastructure, welfare
KOTA KINABALU: The Sabah government will use the increased interim payment from Putrajaya to improve infrastructure and strengthen welfare initiatives for the people, said Chief Minister Datuk Seri Hajiji Noor.
The Sabah government is set to allocate the additional RM1.5 billion interim payment from the federal government towards infrastructure development and welfare programs for its residents, announced Chief Minister Datuk Seri Hajiji Noor. This payment, previously RM26 million, has been significantly increased for the year. The funds will be utilized to construct more paved roads, build concrete bridges, enhance water and electricity supplies, and implement development and welfare initiatives such as constructing more Rumah SMJ houses and expanding the Sentuhan Kasih Rakyat programme.
Hajiji reiterated Sabah's right to 40% of federal revenue from the state, as per the Malaysia Agreement 1963, and emphasized the importance of continuing to pursue this entitlement through negotiations with the federal government. The government has already implemented 13 claims related to MA63, including energy regulation, deep-sea fishing licensing, and the recognition of key departments.
Despite facing domestic and global challenges, Sabah has maintained annual revenue at RM7 billion since 2022 and anticipates it to rise to RM8 billion this year. The state has also witnessed significant investments in the manufacturing sector, with RM7.6 billion recorded in 2025, marking an increase of nearly 208% compared to 2024.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
