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Federal govt reaffirms commitment to Sabah’s 40 pct special grant
['Bp Editor']
News | Borneo Post Online
Facebook Twitter LinkedIn Threads WhatsApp TelegramKOTA KINABALU (Jan 29): The federal government has reaffirmed its commitment to Sabah’s constitutional right to a 40 per cent special grant of the state’s net revenue, following recent negotiations with the Sabah government.
In a written reply, the Finance Ministry confirmed it has taken note of the Kota Kinabalu High Court’s Oct 17, 2025, decision on the special grant and has decided not to appeal.
“The federal government respects the principle of the special grant as provided under the Federal Constitution, including the 40 per cent rate of Sabah’s net revenue,” the ministry said.
Discussions also covered the formation of an Officer-Level Special Grant Negotiation Committee, including its membership and terms of reference.
“The implementation of the 40 per cent special grant remains a key demand under the Malaysia Agreement 1963 and continues to attract public attention in Sabah,” the ministry added.