Kuala Lumpur: The Federal Government has disbursed RM600 million of the RM1.5 billion Special Grant to the Sabah Government, with the payment made on June 12, 2026.
The Federal Finance Ministry (MOF) said the payment formed part of the new Special Grant amount agreed between the Federal Government and the Sabah Government.
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It said the remaining RM900 million would be disbursed after the new Special Grant Order comes into force, following the completion of the required processes and procedures, including the drafting and gazetting of the Yang di-Pertuan Agong's Order under Article 112D of the Federal Constitution.
The Ministry said this in a written reply to an oral question by Tuaran MP Datuk Seri Wilfred Madius Tangau (
pic) during the Dewan Rakyat sitting on Monday.
Madius had asked when the interim RM1.5 billion payment would be made and whether it formed part of Sabah's 40 per cent constitutional revenue entitlement, and if so, when the remaining payment would be made.
According to MOF, the Federal Government, through the Malaysia Agreement 1963 Implementation Action Council (MTPMA63), is continuing negotiations to improve the Special Grant by taking into account the 40 per cent Federal revenue formula in Sabah while complying with Article 112D of the Federal Constitution.
The Ministry added that the Special Grant had increased in stages under the Madani Government from RM125.6 million in 2022 to RM300 million in 2023, RM600 million in 2025 and RM1.5 billion announced by the Prime Minister on May 30, while negotiations on a new method of determining future grant amounts and the implementation of the 40 per cent revenue formula remain ongoing.
