KOTA KINABALU: The Federal Government has not ruled out the possibility of increasing the special grant allocation for Sabah in Budget 2027, which will be tabled in October, while negotiations on the state’s 40% revenue entitlement are still ongoing.
Minister in the Prime Minister’s Department for Sabah and Sarawak Datuk Mustapha Sakmud (pic) said the consideration would, however, depend on the country’s economic position at the time.
“If the economic situation permits, I believe there will be no issue in raising the Special Grant for Sabah,” Mustapha told reporters after officiating the Haj Contribution Ceremony for 55 pilgrims from his Sepanggar constituency here on Sunday (May 3).
When asked about the 40% issues raised in the recently concluded Sabah State Assembly sitting, he said that the federal government had taken note and was studying the issue.
Mustapha said that he had personally discussed the 40% revenue entitlement claim with the Prime Minister, which was also deliberated at last week’s Cabinet meeting.
“The Cabinet will make a decision on this matter,” he said.
During the state assembly sitting, Deputy Chief Minister II and Finance Minister Datuk Seri Masidi Manjun stated that interim payments from Putrajaya since 2022 were without prejudice to Sabah’s claim for the original 40% formula.
Masidi told the Assembly that the state had also written a letter to the federal government asking to pay revenue return for 2025, calculated at RM3.019bil, based on Inland Revenue and Customs collections for that year.
He said that the revenue figures from IRB and Customs were non-disputed, as it was available publicly, but they were still ascertaining other indirect revenue sources.
However, he said the state government remains committed to continue government to government engagement over its dues.
