Kota Kinabalu: Gabungan Rakyat Sabah (GRS) Sec-Gen Datuk Armizan Mohd Ali is confident the Federal Government will agree to review and increase the current interim RM600 million payment of Sabah’s 40 per cent Special Grant entitlement this year.
He said such commitment had been expressed by Prime Minister Datuk Seri Anwar Ibrahim, including through an official statement in the Dewan Rakyat on Nov 13, 2025, where he said the Federal Government recognises Sabah’s 40 per cent Special Grant entitlement as stipulated under the Federal Constitution.
Armizan said the commitment demonstrated the Federal Government’s seriousness in correcting the stance of previous administrations, which not only failed to review the special grant rate but had also stated in Parliament that Sabah’s 40 per cent entitlement had ceased to be in force.
Armizan said GRS remains firm in its position that the latest review of the Special Grant rate under Articles 112C and 112D of the Federal Constitution must be carried out this year.
“Although the case related to the 40 per cent entitlement is still undergoing legal proceedings at the Court of Appeal, GRS remains steadfast that the latest review of the Special Grant rate under Articles 112C and 112D of the Federal Constitution must be implemented this year.
“The GRS-led State government under the leadership of Chief Minister Datuk Seri Hajiji Haji Noor will continue to use the negotiation platform established to ensure that the new rate can be agreed upon at a higher value in line with Sabah’s demands and official proposals.
“Sabah is claiming these rights and additional revenue to expand the State’s fiscal space for the wellbeing of the people and to accelerate State development.”
Armizan who is also Domestic Trade and Cost of Living Minister, said this in his Facebook account after coordinating a Special Discussion Session on MA63 and development on implementation Sabah’s Right of 40 per cent entitlement here, Thursday.
Present were Deputy Chief Minister I cum Parti Bersatu Sabah )PBS) President Datuk Seri Dr Joachim Gunsalam; Deputy Chief Minister II Datuk Seri Masidi Manjun, who is also the State Finance Minister and GRS Deputy President; and Deputy Chief Minister III Datuk Ewon Benedick, who is also the President of United Progressive Kinabalu Organisation (Upko) , along with the GRS leadership line-up.
Armizan who is also Papar MP said the increase in the Special Grant from only RM26.7 million between 1974 and 2021 to RM600 million annually at present enabled the State Government to implement various new initiatives.
These included the Sabah Maju Jaya (SMJ) Rumah Mesra Program which directly benefits the poor throughout Sabah with 6,634 houses completed and occupied by poor households from 2022 until April 30, 2026.
In addition, the Sentuhan Kasih Rakyat (Syukur) Programme, which began two years ago, has also channelled monthly cash assistance to approximately 140,000 poor household heads across Sabah.
“With the expected increase in the Special Grant rate this year, the State government is also planning to focus on additional initiatives, including upgrading water piping systems to address non-revenue water (NRW) issues as well as the construction of bridges, especially in rural areas.
“These efforts are important to ensure that the revenue obtained through the 40 per cent entitlement can be translated into comprehensive development and direct benefits for the people of Sabah,” he said.
