KOTA KINABALU, Malaysia, July 14, 2025 — Deputy Prime Minister Dato’ Sri Fadillah Yusof chaired a special meeting of the Technical Committee under the Malaysia Agreement 1963 Implementation Action Council (MTPMA63) with the Sabah State Government on Monday morning.
The meeting, a follow-up to the first Technical Committee meeting of 2025, focused on Sabah’s claim for 40% of the state’s revenue collected by the Federal Government, as stipulated under Article 112C of the Federal Constitution. Following a formal presentation by the Sabah State Government, the committee unanimously agreed to escalate the matter to the next MTPMA63 meeting, chaired by Prime Minister, for a policy decision due to differing legal interpretations.
The Federal Government reiterated its commitment to resolving MA63-related issues. For context, the Special Grant rate was revised for 2022 and 2023, increasing the interim amount from RM125.6 million to RM300 million. Most recently, this was raised to RM600 million for the five-year period until 2029. Should an agreement be reached within this timeframe, a new order could replace the interim amount.
The Ministry of Finance will continue ongoing negotiations with the Sabah State Government to achieve a comprehensive and fair resolution for mutual benefit. The Federal Government remains dedicated to upholding the spirit of the Malaysia Agreement 1963 for the prosperity and well-being of the nation.