Increased Sabah Grant Reflects Federal Commitment To MA63 - Analysts

By Arthur Edward

KOTA KINABALU, May 31 (Bernama) -- The increase in Sabah’s interim special grant from RM600 million to RM1.5 billion, effective today, has been described as a significant step towards translating the spirit of the Malaysia Agreement 1963 (MA63) into tangible and inclusive development outcomes.

Sabah Geopolitics and Electoral (GeoPES) researcher Associate Professor Dr Syahruddin Awang Ahmad said the proactive move reflects the federal government’s strong political commitment to narrowing the development gap between regions.

He said the increase represents a serious effort to address longstanding disparities that have separated the Borneo region, particularly Sabah, from Peninsular Malaysia.

According to Syahruddin, the allocation would not only strengthen Sabah’s fiscal capacity but also restore public confidence in the federal government’s commitment to implementing a fairer and more transparent revenue-sharing framework.

“It is also a clear signal that the spirit of power and revenue sharing is now being implemented in a fairer, more transparent and effective manner for the long-term prosperity of the nation,” he told Bernama.

He suggested that priority be given to resolving critical infrastructure issues, including clean water supply, electricity grid stability and road connectivity, through a comprehensive recovery and development plan.

Beyond basic infrastructure, Syahruddin said the funds should also be channelled towards upgrading dilapidated schools, strengthening rural healthcare facilities and intensifying programmes to eradicate hardcore poverty in rural areas.

He described the success of the initial phase as evidence that fact-based negotiations can produce constructive solutions, while paving the way for the eventual finalisation of Sabah’s 40 per cent revenue entitlement formula.

Meanwhile, a political analyst from Universiti Malaysia Sabah (UMS), Associate Professor Dr Romzi Ationg, said the substantial increase in interim payments reflected a shared determination to find common ground and build greater trust in ongoing negotiations over Sabah’s rights.

“Continued political commitment and the willingness of both parties to negotiate in the spirit of mature federalism are crucial to achieving a more comprehensive, equitable and sustainable solution,” he said.

Meanwhile, Gagasan Rakyat Sabah Information Chief Datuk Nizam Abu Bakar Titingan said the announcement was the result of effective diplomacy and strong cooperation between the state and federal governments.

He said the leadership of Chief Minister Datuk Seri Hajiji Noor and Gabungan Rakyat Sabah (GRS) had successfully translated the close federal-state cooperation into tangible benefits for the people.

According to Nizam, efforts to secure Sabah’s rights should be pursued through constructive engagement and evidence-based legal and financial arguments rather than emotional rhetoric.

“The approach of prioritising negotiations, wisdom and close cooperation with the federal government has proven to be the most effective path forward,” he said.

Yesterday, Prime Minister Datuk Seri Anwar Ibrahim, while opening the state-level 2026 Kaamatan Festival in Penampang, announced the increase in the interim special grant as a temporary measure pending the finalisation of the formula and mechanism for implementing Sabah’s 40 per cent revenue claim.

Before 2022, Sabah received only about RM26.7 million annually in special grants for many years before the allocation was progressively increased under the MADANI Government.

-- BERNAMA