KUALA LUMPUR, Dec 15 — The next negotiation on special grants between the federal and Sabah governments has been scheduled for December 19, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said the Sabah and federal governments have expressed their commitment to carrying out discussions progressively to ensure smooth negotiations.
“The federal government continued negotiations with the Sabah government on November 17, 2025, and established a Special Grant Negotiation Committee between the federal and Sabah governments.
“Also discussed were the terms of reference used as a guide during the negotiations,” he said when winding up the debate session on the Supply Bill (Budget) 2026 at the Dewan Negara today.
Amir Hamzah said the federal government, through the Malaysia Agreement 1963 Implementation Action Council, is committed to negotiating a better special allocation rate for Sabah, including by increasing the amount.
“In 2023, the federal government increased Sabah’s special grant to RM300 million. From 2025, the government has agreed to increase the amount of the special grant to RM600 million.
“This payment is on an interim basis while the federal and Sabah governments formulate a new method that will determine future special grants,” he added.
According to him, the management and development allocation for Sabah has continued to increase from RM14 billion in 2023 to RM17 billion in 2026.
Amir Hamzah explained that this allocation is channelled into strategic developments such as the Pan Borneo Highway, rural water and electricity supply, roads, and social amenities.
