Formula on special grants for East Malaysia being worked out, says Minister

KUALA LUMPUR: There has yet to be a final agreement between the federal government and East Malaysia on the formula for their special grants, says Datuk Armizan Mohd Ali.

The Minister in the Prime Minister's Department (Sabah and Sarawak Affairs and Special Functions) said Sabah is also firm on wanting its 40% revenue entitlement.

"At the same time, among the basis for the federal government’s stance is that the reviews on the special grant must be within the provisions of the constitution,” he said during the minister's reply on the Budget 2024 in the Dewan Rakyat on Oct 30.

He said the RM300mil allocated for Sabah and Sarawak respectively under Budget 2024 was an interim measure.

“The interim review on the amount was done based on the (government’s) commitment to increase the special grant for Sabah and Sarawak. Discussions will continue from time-to-time to increase the rate,” he added.

He was responding to Datuk Seri Tuan Ibrahim Tuan Man (PN-Kubang Kerian) who asked if there was a fixed formula for the special grants.

Article 112D of the Federal Constitution stipulated the provision of reasonable grants for Sarawak and Sabah. It was subject to a review once every five years.

The last time the special grants were reviewed was in 1969 for Sarawak and 2022 in Sabah.

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