Sabah receives RM600m interim grant, urges Putrajaya to release remaining RM900m this year
KOTA KINABALU, July 20 — Sabah has received RM600 million of the RM1.5 billion interim special grant from the federal government, with the balance of RM900 million requested to be paid within the year, said state Finance Minister Datuk Seri Masidi Manjun.
Masidi, who is also Deputy Chief Minister II, said the RM1.5 billion payment announced by Prime Minister Datuk Seri Anwar Ibrahim is an interim arrangement and does not represent the final amount due to Sabah under the Federal Constitution.
He said the state maintains its position that the 40 per cent revenue entitlement under Articles 112C and 112D of the Federal Constitution must be fully implemented, adding that the interim payment does not prejudice Sabah’s constitutional rights or ongoing negotiations.
“If an agreement on the final amount cannot be reached, the state is of the view that an independent assessor should be appointed as provided under the constitution,” he said when responding to questions from Datuk Seri Wilfred Madius Tangau (GRS-Tamparuli), Datuk Seri Mohd Shafie Apdal (Warisan-Senallang) and Alias Sani (Warisan-Sekong) during the State Legislative Assembly sitting today.
Masidi said there had been several exchanges between the state and federal governments in June following the announcement, including correspondence dated June 9, 19 and 26.
Separately, he said Sabah is seeking RM1.61 billion in additional expenditure under the 2026 Supplementary Supply Bill to ensure smooth government operations until year-end.
He said the largest portion, RM856 million or 53 per cent, is allocated for statutory fund contributions, mainly involving internal accounting adjustments rather than actual cash outflow.
Other allocations include RM278 million for operational expenditure, RM210 million for investments, RM162 million for administrative expenses, RM93 million for domestic grants and RM13 million under special provisions.
Masidi said the additional funding is necessary to sustain government functions and meet financial obligations, including reducing the development account deficit and maintaining road and bridge infrastructure across the state.
