Ringgit closes higher against US dollar on improved risk appetite
KUALA LUMPUR: The ringgit closed higher against the greenback on Wednesday as investors' risk appetite improved ahead of US inflation data, with sentiment supported by the 2027 Budget announcement last week.
The Interim Special Grants and development allocations for Sabah and Sarawak have been raised, aiming to bolster progress in both regions. MPs anticipate that this could lead to a finalized special grant formula and more efficient project execution. During the Budget 2027 policy debate, Datuk Seri Doris Sophia Brodi praised the increase in the interim special grant from RM600 million to RM1.5 billion for both states.
However, she emphasized the urgency for the federal government to promptly draft a transparent, objective, and sustainable formula aligned with Article 112D of the Federal Constitution and the Malaysia Agreement 1963 (MA63). Datuk Mohd Kurniawan Naim Moktar questioned the progress on negotiations regarding the 40% formula granting Sabah the right to receive 40% of the net revenue derived by the Federal Government from the state.
He requested clarification on the recent status, the verification method for federal net revenue, and a targeted timeline for resolving the dispute with Sabah. Datuk Wetrom Bahanda suggested continuing unspent development allocations in Sabah by establishing a Carry Forward Fund, ensuring approved funds are utilized, especially when project implementation encounters bureaucratic, technical, or other delays.
Wetrom also supported Sabah's RM18.7 billion allocation for 2027, urging the Federal Government to avoid wasting the funds on delayed projects. Datuk Seri Wilfred Madius Tangau echoed Wetrom's concerns and advocated for an end to the "culture of announcing development projects that ultimately get delayed and become 'sick' projects."
Tangau requested details about the utilization of Sabah's 2026 development allocation, the number of sick projects implemented by Sabah and Federal JKR, and proposed five improvements, such as resolving land, approval, and utility matters before project commencement, public disclosure of project progress and expenditures, and the empowerment of Sabah JKR as the technical agency for federal projects valued at RM50 million and below. The Dewan Rakyat session continues.
Written by urgent.news from Malay Mail's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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