Sabah’s 40% grant, RM1.5bil payout and the unresolved formula
FMT looks into what the 40% special grant entails, the significance of the 2026 payout figure, and some of the challenges faced.
The Malaysian government announced that the state of Sabah will receive an interim special grant of RM1.5 billion in 2026. Prime Minister Anwar Ibrahim and Chief Minister Hajiji Noor expressed their commitment to resolving the issue of Sabah's special grant. The grant is outlined in the Malaysia Agreement 1963 and entitles Sabah to 40% of the growth in net revenue collected by the federal government.
However, negotiations are ongoing to establish a permanent formula for calculating Sabah's share of federal revenue, as the special grant payments have not met the state's development needs for decades.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Hak 40% Sabah, bayaran RM1.5 bilion dan formula belum dimuktamadkan freemalaysiatoday.com
