RANAU, Sabah – Federal Minister of Domestic Trade and Cost of Living Datuk Armizan Mohd Ali has highlighted the federal government’s commitment to recognising Sabah’s constitutional right to a 40% special grant as provided under the Malaysia Agreement 1963 (MA63).
Speaking at the Kaamatan festival in Kampung Kilimu, Ranau on 23 May 2026, Armizan — who is also Gabungan Rakyat Sabah (GRS) secretary-general — emphasised ongoing efforts to fulfil the state’s long-standing entitlement.
The video shared by Armizan features footage of him addressing the crowd in traditional attire, alongside news clips and graphics showcasing the progressive increase in Sabah’s interim special grants:
- 2022: RM125.6 million
- 2023: RM300 million
- 2024: RM306 million
- 2025: RM600 million (with further increases reported up to RM1.5 billion in interim arrangements)
These figures demonstrate a clear upward trajectory in federal support pending full implementation of the 40% entitlement.
The issue gained momentum following a landmark High Court ruling in October 2025, which declared previous federal arrangements unlawful and ordered a joint review with the Sabah government. Prime Minister Datuk Seri Anwar Ibrahim has since reaffirmed the Madani government’s commitment, stating there will be no appeal against the core entitlement and pledging to finalise implementation mechanisms.
Anwar is expected to provide further clarification on the negotiations during his visits to Sabah. Armizan noted that GRS may table a motion in the state assembly if full implementation is not expedited.
The 40% special grant, rooted in MA63 and Articles 112C and 112D of the Federal Constitution, aims to return a fair share of net revenue derived by the federation from Sabah for the state’s development.
This development is seen as a significant step towards addressing historical grievances and strengthening federal-state relations in line with the spirit of the Malaysia Agreement.
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