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Prime Minister: Federal spent RM7 billion more than it received
Published on: Monday, November 10, 2025
Published on: Mon, Nov 10, 2025
By: Jeremy S Zabala
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Prime Minister: Federal spent RM7 billion more than it received
Anwar arriving at Gaya Street on Sunday morning to greet the locals during his walkabout
Kota Kinabalu: The Federal Government has already been allocating more funds to Sabah and it is more than what it gets in return through tax revenue, according to Datuk Seri Anwar Ibrahim.

The Prime Minister said Federal is committed to helping the State Government beyond the 40 per cent revenue entitlement.

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Anwar, who was confronted with the question over the 40pc entitlement during his walkabout in Gaya Street, Sunday (pic), said Federal collected RM10 billion in tax revenue from Sabah in 2024. 

The exchange went viral on social media.

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“Don’t listen to the political campaigns of others, listen to me — I am the Prime Minister.” 

The man had asked Anwar when the federal government would fulfil Sabah’s constitutional right to 40 per cent of federal revenue derived from the state, referring to a provision under Article 112C of the Federal Constitution that was recently affirmed by the High Court in Kota Kinabalu.

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The exchange continued with the man insisting that the 40 per cent was meant to be derived from tax revenue and was an entitlement “different” from the RM17 billion allocation.

Anwar, however, defended his explanation.

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Anwar repeated the response at the Program Rancakkan Madani Sabah at Sabah International Convention Centre, later.

“How much did the Government spend for Sabah? Despite getting RM10b, it spent RM17b to develop schools, medical field, secure boundaries and Eastern Sabah Security Command (Esscom).

“We utilise the revenue earned to develop Malaysia and coincidentally Sabah that is being left out a bit receives more aid,” he said.

“Kelantan which is a poor state that faces floods every year. We spent billions (for their aid) despite the state being an opposition state. 

“Perlis is also a poor state with insufficient revenue (in which) even their (government personnel’s salary) is being paid by the Federal Government.

“At least Sabah is better, the State Government personnel’s wages are being paid by the government itself. This is what you call a country, we care for Sabah and for Perlis,” he added.

He also said that this should be viewed as equality of helping each state in Malaysia to ensure that every corner of the country will be developed instead of focusing on one area.

Although channelling RM17billion, Anwar said some parties would still consider this amount insufficient but his constant visits to Sabah is evident that the Federal Government under his leadership has always been keen to hear the voices of Sabahans.

He said that, over the three years he has been leading the administration, he is the Prime Minister who has set foot in Sabah the most because he wants to understand

the real needs of the people and the development challenges in the State.

“This Nov 22, I have been the Madani Government Prime Minister for three years. And since taking over, the Federal Government has been adding allocations for Sabah, and this is a fact.

“I am Penangite, if I go with that sentiment for sure I would give all to Pulau Pinang. But no, I am the Prime Minister of Malaysia. There are a lot of poor folks in Sabah, holes on the roads and (numbers) of dilapidated school, (so) we help them,” he added.

He also hopes that the youths, particularly in Sabah will continue to understand the fact that the Federal Government under his leadership has been committed to help not just a single state but focuses on the whole country.
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