SAMARAHAN: The Federal Government has reaffirmed its commitment to provide a substantial RM300 million special grant to the states of Sarawak and Sabah.
Deputy Prime Minister Datuk Seri Fadillah Yusof said the allocated amount is currently awaiting gazettement before it is distributed to the two Borneo states.
“The RM300 million right now is subject to be gazetted. Once gazetted it will be paid out.
“This matter no longer needs to be included in the 2024 Budget because it has already been agreed,” he said.
He said this when met by the media after officiating the Hari Berandau and Koperasi Kluster Koko at Pusat Penyelidikan & Pembangunan Koko (PPPK), Kota Samarahan here today (Sept 30).
He added that the new formula for the provision of the special grant has not yet been determined.
“The formula has not yet been decided but the sum of RM300 million is confirmed. Therefore, next year, the grant will remain the same until we finalise the formula,” he said.
For the record, since 1973, Sarawak and Sabah special grant rates have remained at RM26.7 million and RM16 million respectively before being increased to RM300 million.
Last January, the Prime Minister cum Finance Minister Datuk Seri Anwar Ibrahim pointed out that in the Malaysia Agreement 1963 (MA63), there was a mention of Article 112D about reasonable grants to be provided to Sarawak and Sabah, starting with RM16 million and RM26 million, respectively, which should be reviewed once every five years, “but this did not happen.”
As such, Anwar said the Federal Government will revive the review of the grants and that he hoped the matter would be finalised.
He added that when there is a formula, the special grant will not be bound to the set amount because it takes into account the country’s financial economic capacity.
