KOTA KINABALU: Sabah will be getting a RM1.5bil interim payout from the Federal Government even as negotiations on the 40% revenue entitlement under the Malaysia Agreement 1963 (MA63) are being finalised, says Datuk Seri Anwar Ibrahim.
The Prime Minister said the RM1.5bil payment, which is up from last year’s RM600mil, is a short-term solution while related parties finalise the amount and mechanism of payment.
Anwar made the remarks when officiating the state-level Kaamatan festival at the Kadazandusun Cultural Association (KDCA) hall yesterday.
On Friday, he announced that all ministries will face budget cuts under Budget 2027 as the government seeks to strengthen fiscal discipline amid global economic uncertainties.
He said the government also saved over RM15.5bil in leakages in recent years in its effort to fight corruption and other abuses.
During his speech, he said a government cannot remain strong if it only takes care of the interest of one group, especially in a multi-racial country like Malaysia.
“As PM, I have never sidelined any groups, whether in carrying out functions of events, or in policy making,” said Anwar, adding that the interests of all must be taken into account.
He said as Sabah is progressing well, exceeding the estimated timeline compared to previous years, many other development initiatives needed to be sped up.
“We try our best to fulfil our promises and responsibilities, but do not keep going back to past administrations and attack me for what has not been done in the past,” he said, stating that he does not wish to use anything as an excuse to delay what is rightfully Sabah’s.
He asked for the people to not doubt the government’s decision to fulfil its promise.
“Yes, negotiations are still ongoing, but I do not want that to be taken as delaying,” Anwar added.
On Kaamatan, he said celebrations such as these unite people and bring tourists to Sabah.
He encouraged the people to continue upholding the diversity of each other’s cultures and to promote peace and harmony.
In response, Datuk Mustapha Sakmud said the RM1.5bil interim special payment is a sign of the Madani government’s commitment to fulfilling Sabah’s rights.
The Minister in the Prime Minister’s Department (Sabah and Sarawak) said this increase from RM600mil from last year was also proof of the government’s obligation to address Sabah’s 40% claim in a systematic and responsible manner.
“For the record, before the change in government in 2022, Sabah only received around RM26.7mil annually for decades, even though the 40% revenue right has been in the Federal Constitution,” he said after Anwar’s speech.
In thanking Anwar for the increased interim payments, Mustapha said this also shows the Federal Government gives serious attention to Sabah’s rights.
“We have to be fair in assessing the progress in this matter. The issue of Sabah’s 40% nett revenue claims has been going on for decades and cannot be solved in a short period of time without strong political will as well as good state and federal relations,” he said.
Mustapha shared how in 2022, Sabah received RM125.6mil in interim payment, RM300mil in 2023 and 2024, RM600mil for 2025, and this year, to expect RM1.5bil as interim payment.
“Therefore, this announcement is an achievement which has to be appreciated by all Sabahans,” he said while affirming that the fight for state rights under the Malaysia Agreement 1963 (MA63) and Articles 112C and 112D of the Federal Constitution continue.
“We want a mature, far-sighted and respectful approach in fighting for state rights so that they can be realised without affecting political stability or good relations with the Federal Government,” he said.
Upko president Datuk Ewon Benedick concurred, saying the latest development is proof of the Federal Government’s commitment to fulfilling state rights in stages as negotiations continues.
