Malaysia assures Sabah's 40% special grant rights will be implemented

The Federal Government has pledged to uphold Sabah's right to a 40% special grant, a key provision of the Malaysia Agreement 1963 (MA63). Prime Minister Datuk Seri Anwar Ibrahim affirmed that his administration recognizes and is committed to fulfilling this entitlement, emphasizing that the focus is now on determining the most effective implementation strategy.

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We are doing our utmost to fulfill our promise. I want the people of Sabah to know that the 40% entitlement deserves attention, but do not deny that Sabah has been wronged, neglected, or made to suffer. Can we deny the 40% right? No, because it was a promise made in 1963.

"We are doing our utmost to fulfill our promise," Anwar stated during the Sabah State Kaamatan Festival. "I want the people of Sabah to know that the 40% entitlement deserves attention, but do not deny that Sabah has been wronged, neglected, or made to suffer. Can we deny the 40% right? No, because it was a promise made in 1963."

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There is no more debate, this is a policy that must be implemented. Now the challenge is how to implement it, because every decision involving state rights has implications for Sarawak and other states.

Anwar declared that the 40% issue is no longer debatable, establishing it as a policy that must be executed. The challenge lies in the execution, as decisions impacting state rights have implications for Sarawak and other states. He noted that while the government is reviewing Article 112D of the Federal Constitution, financial standing can no longer be an excuse for delaying the implementation.

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I have told my colleagues in the Cabinet that we can no longer use that as an excuse. We have to find a way. That is why I asked the Secretary General of the Treasury to discuss in detail with the State Secretary to find the best formula to implement this promise.

To expedite the process, the interim special grant for Sabah has been significantly increased to RM1.5 billion, up from the current RM600 million, while the final formula for the 40% entitlement is being finalized. Anwar stressed that the government will not betray the trust or break its promises to the people of Sabah, assuring that the matter is being actively pursued.

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I do not want to be seen as deliberately delaying this matter. I emphasize again the issue of this 40 percent. Whether the final decision is made in June or December, that will be decided by the relevant committee and brought to the state government and negotiations between the Federation and Sabah.