Sabah Grant Lifted to RM1.5b

Prime Minister Anwar Ibrahim announced that the federal interim special grant for Sabah has been lifted to RM1.5 billion. The increase arrives while Sabah’s demand for a 40 percent share of federal revenue is still being hammered out in negotiations. By injecting extra cash now, the centre hopes to cushion the state’s fiscal shortfall and keep development programmes on track, from road upgrades to health‑care expansion. The move also signals a willingness to address Sabah’s economic grievances without waiting for the final revenue formula, aiming to stabilise the state’s budget ahead of the next financial cycle. Critics argue the boost is a stop‑gap that may not resolve deeper fiscal imbalances, but the government says it buys time for a fair settlement.

The extra RM1.5 billion gives Sabah immediate cash to fund infrastructure and social projects, easing short‑term budget pressure while the 40 percent revenue share is still under discussion.

The grant hike underscores the federal government’s attempt to placate Sabah’s long‑standing calls for a fairer fiscal deal. By providing immediate resources, it helps keep vital projects alive, but the unresolved revenue share could still fuel political tension and affect future investment confidence in the state. It also shows other states that interim funding can be a bargaining chip.