KUCHING: Sarawak's interim payment of the special grant under Article 112(D) of the Federal Constitution will be increased to RM1.5bil, says Prime Minister Datuk Seri Anwar Ibrahim.
He said the Federal government would continue to negotiate with Sabah and Sarawak to finalise a formula for the amount of the annual special grant.
"The interim payment to both states was previously increased from RM300mil to RM600mil while negotiations were ongoing to review the special grant.
"Then we increased it to RM1.5bil for Sabah.
"For Sarawak, the state's financial position is strong but we will also increase it to RM1.5bil in the spirit of friendship," Anwar said at the Malaysia Day celebration here on Wednesday (Sept 16) night.
He also announced several improvements to the Budi Diesel initiative, including expanding the transfer of subsidised diesel quotas to any eligible Malaysian citizen.
Previously the transfer was limited to immediate family members only.
In addition, registered owners of more than one diesel vehicle can transfer their quota for each vehicle, up to a maximum of three vehicles.
"These improvements are effective immediately," he said.
Anwar also announced a one-off flight ticket purchase assistance of RM500 to new students at public universities, polytechnics and community colleges for the September/October intake.
"This is expected to benefit 7,095 students who need to take domestic flights between Peninsular Malaysia, Sabah, Sarawak and Labuan to start their studies," he said.
