KOTA KINABALU, Oct 15 (Bernama) — The increase in Sabah’s interim special grant to RM1.5 billion reflects the federal government’s commitment to addressing the state’s needs, said Universiti Teknologi MARA (UiTM) Sabah senior lecturer in political economy Assoc Prof Dr Firdausi Suffian.
He said the increase marked a significant and positive development in financial relations between the federal government and the Sabah government, particularly given that the special grant stood at just RM125 million over the past four years.
“This shows that the federal government is giving due attention to the state government. However, we must recognise that the special grant is neither a substitute for nor the conclusion of Sabah’s claim to its full 40 per cent net revenue entitlement.
“As the term ‘interim’ suggests, the formula needs to be reviewed,” he said this when appearing as a guest on Bernama TV’s ‘Belanjawan 2027: Memacu Pembangunan dan Kebajikan Rakyat Sabah’ programme today.
Firdausi also acknowledged progress in the implementation of the Malaysia Agreement 1963 (MA63) in recent years, particularly in matters concerning state autonomy and administrative powers, beyond the long-standing 40 per cent revenue claim.
He said these developments included Sabah’s regulatory powers over technical departments and its authority to approve projects worth RM50 million, describing them as important progress in the federal government’s recognition of Sabah’s rights.
“It is not just about the 40 per cent issue. Several aspects of state autonomy and rights are also beginning to receive attention. Although some developments may appear minor, they still represent important achievements for Sabah,” he said.
When tabling Budget 2027 on Oct 9, Prime Minister Datuk Seri Anwar Ibrahim said the National Covenant would not leave behind those facing hardship, adding that every Malaysian child should have the opportunity to fulfil their potential, regardless of family background, region or status.
He said the Malaysia Agreement 1963 is a National Covenant, one the whole nation must honour.
“The MADANI Government has raised it on three occasions, and the latest interim rate stands at RM1.5 billion, to be paid in full before the year is out. Negotiations with Sabah and Sarawak continue towards a fair and sustainable annual formula,” Anwar said.
— BERNAMA