New special grant of RM125.6 mil following agreement between Sabah – Federal Government

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PUTRAJAYA: Sabah will receive a new special grant of RM125.6 million for 2022 – an increase by 4.7 times from RM26.7 million – following the consensus reached between the Federal Government and the Sabah State Government under the Article 112D Federal Constitution.

Prime Minister Datuk Seri Ismail Sabri Yaakob and Sabah Chief Minister Datuk Seri Panglima Hajiji Noor in a joint statement said, the agreement was an important sign as the last review on that matter was done in 1969.

The statement said, the review agreement includes the amount of the new special gift will increase every year for the period 2023-2026 following the increment rate agreed between the two governments.

“Both governments will continue to negotiate on the 40 per cent claims from the Sabah State revenue and will conduct a review on the special gift under Article 112D Federal Constitution to get the amount of the special gift without affecting the financial situation of the Federal Government.

“If the new amount has been agreed between both governments before 2026, then the new amount will be used to compensate the special gift payments to Sabah starting 2022.

“This agreement is without prejudice towards the responsibility and the Federal Government rights and the Sabah State Government to continue the review on the special gift under Article 112D Federal Government by considering the financial situation of the Federal Government and the needs of Sabah relating to the service costs of the state. Sabah state government has the rights to depend on the original formula that is stated in Article 112C and Part Four 10th Schedule of the Federal Constitution,” the joint statement added.

According to the statement, the agreement made between the Federal Government and Sabah State Government is a symbol of Malaysian Family, Federal Government’s commitment under the Federal Constitution and Malaysian Agreement 1963 to the Sabah State Government and the concern of Sabah Government towards the roles of Federal Government to bring development and prosperity to Sabah. – Malaysia World News

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