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 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 yesterday.
When asked about the 40% revenue payment raised in the recent Sabah State Assembly sitting, he said the Federal Government was studying the issue.
Mustapha said he had personally discussed the 40% revenue entitlement claim with Prime Minister Datuk Seri Anwar Ibrahim, and the matter was also discussed at last week’s Cabinet meeting.
“The Cabinet will make a decision on this matter,” he said.
Mustapha also expressed appreciation to all Sabah assemblymen who debated the issue of the state’s right to return federal revenue to the state.
During the state assembly sitting, Deputy Chief Minister II and Sabah Finance Minister Datuk Seri Masidi Manjun said that interim payments from Putrajaya since 2022 were without prejudice to Sabah’s claim for the original 40% formula.
Masidi told the state assembly that the state had also written a letter to the Federal Government requesting it pay revenue returns for 2025 calculated at RM3.019bil, based on Inland Revenue Board (IRB) and Customs Department collections for that year.
He said that the revenue figures from IRB and Customs were non-disputed, as it was available publicly.
