Sabah expects to receive the remaining RM900 million balance of a RM1.5 billion interim special grant by the end of 2026. An MA63 meeting is scheduled for August 3 to discuss the outstanding payment and the calculation of the 40% special grant share payable under the Malaysia Agreement 1963 (MA63) [1, 2, 3].
Sabah Deputy Chief Minister II and Finance Minister Datuk Seri Masidi Manjun said the state and federal governments are actively negotiating to ensure the balance is fully paid this year. "The state and federal governments are actively negotiating to ensure that the allocation can be paid this year, and we believe it will be paid this year," he stated during a recent update [1, 2, 3].
The state had already received an interim payment of RM600 million from the RM1.5 billion special grant on June 12, 2025. Sabah formally requested the remaining RM900 million be disbursed within 2026 during the State Legislative Assembly session on July 20, 2026 [1, 2].
Masidi urged Sabahans to contribute actively to national development and show patriotism by flying the state and national flags in conjunction with Sabah Day and National Month. He stressed, "I think eventually we have to ask ourselves, what have we done to make sure that we are at the forefront or we are part and parcel of the entire development agenda in the country. Meaning to say, I think we should not just complain, but make sure we do what we can so that we too are equally part of the nation's development flow" [1, 2, 3].
The upcoming negotiations will also cover broader issues including Sabah’s claim to a 40% share of net federal revenue derived from the state as part of the MA63 implementation framework [1, 2, 3].
The August 3 meeting will be a key moment for resolving the outstanding payment and finalising the formula for the special grant calculation under MA63.
