Kota Kinabalu: Minister in the Prime Minister’s Department for Sabah and Sarawak Datuk Mustapha Sakmud has hinted that Sabah may receive a higher specialgrant allocation in Budget 2027 in October.
This is despite negotiations on the state’s 40 per cent revenue entitlement still yet to be resolved.
However, Mustapha said the consideration would depend on the country’s economic position at the time. Sabah was supposed to receive RM600 million under last year’s national budget in interim payment pending the issue being resolved amicably.
“If the economic situation permits, I believe there will be no issue in raising the Special Grant for Sabah,” Mustapha told reporters after officiating the Haj Contribution Ceremony for 55 pilgrims from his Sepanggar constituency, Sunday.
On the 40pc issue raised in the recently concluded Sabah Assembly sitting, he said that the federal government had taken note and was studying the issue.
Mustapha said that he had personally discussed the 40pc revenue entitlement claim with the Prime Minister, which was also deliberated at last week’s Cabinet meeting.
“The Cabinet will make a decision on this matter,” he said.
During the state assembly sitting, Deputy Chief Minister II and Finance Minister Datuk Seri Masidi Manjun stated that interim payments from Putrajaya since 2022 were without prejudice to Sabah’s claim for the original 40pc formula.
Masidi told the Assembly that the state had also written a letter to the federal government asking to pay revenue return for 2025, calculated at RM3.019bil, based on Inland Revenue and Customs collections for that year.
He said the revenue figures from IRB and Customs were non-disputed, as it was available publicly, but they were still ascertaining other indirect revenue sources.
However, he said the state government remains committed to continue government to government engagement over its dues.