The Federal Government increased Sabah's interim Special Grant allocation from RM600 million to RM1.5 billion. Prime Minister Datuk Seri Anwar Ibrahim announced the raise on May 31, 2026, as part of efforts to strengthen Sabah's rights under the Malaysia Agreement 1963 [1, 2].
Gabungan Rakyat Sabah (GRS) secretary-general Datuk Armizan Mohd Ali said the higher grant affirms the government's recognition of Sabah's 40% Special Grant entitlement under the Federal Constitution. He noted the government's commitment was consistent with the Prime Minister's speech in Dewan Rakyat on November 13, 2025, where Anwar Ibrahim affirmed Sabah's constitutional rights [1].
Armizan described the increase as a clear demonstration of the Federal Government's dedication to implementing Sabah's rights. He said, "The increase in the interim Special Grant allocation to Sabah from RM600 million to RM1.5 billion clearly demonstrates the Federal Government’s commitment to strengthening the implementation of the state’s rights under the Malaysia Agreement 1963" [2].
Despite the ongoing legal case over Sabah's 40% revenue entitlement, GRS is pushing for the review and gazettement of the revised Special Grant within 2026. Armizan also held a meeting with Sabah MPs on June 15 to discuss prioritising the implementation of Sabah's 40% entitlement [1, 2].
The GRS intends to continue active engagement, negotiation, and cooperation with the Federal Government to safeguard Sabah's rights [1, 2].
Separately, the Sarawak government allocated RM10 million to Chinese independent schools for educational development during a delegation visit on June 15. This amount is an increase from RM3 million previously and is part of an ongoing support programme since 2014, totaling RM102 million [3].
