Federal Govt-Sabah Special Grant Negotiations Continue On Dec 19 - Amir Hamzah

KUALA LUMPUR, Dec 15 (Bernama) -- The next negotiation session between the federal government and the Sabah government regarding special grants is scheduled to be held on Dec 19, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

He said the Sabah government and the federal government have expressed their commitment to carry out discussions progressively to ensure that the negotiation process runs smoothly.

“The federal government has continued negotiations with the Sabah government on Nov 17, 2025 and established a Special Grant Negotiation Committee between the federal government and the Sabah government.

“Also discussed are the terms of reference used as a guide during the negotiations,” he said when winding up the debate session on the Supply (Budget) Bill 2026 at the Dewan Negara today.

Amir Hamzah said the federal government, through the platform of the Malaysia Agreement 1963 Implementation Action Council, is committed to negotiating a better special allocation rate, including increasing the amount of special allocation to Sabah.

“In 2023, the federal government increased Sabah's special grant to RM300 million. Starting in 2025, the government has agreed to increase the amount of the special grant to RM600 million.

“This payment is on an interim basis while the federal government and Sabah government are formulating a new method that will determine future special grants,” he added.

According to Amir Hamzah, the federal government is always concerned about the allocation needs in Sabah where the management and development allocation continues to increase from RM14 billion in 2023 to RM17 billion in 2026.

He explained that this allocation is channelled to implement strategic developments such as the Sabah Pan Borneo Highway, rural water supply, rural electricity supply, link roads, rural roads and social amenity facilities.

-- BERNAMA