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KOTA KINABALU: Penampang's PKR youth wing has welcomed the federal government’s decision to increase Sabah’s interim special payment to RM1.5 billion this year, calling it a significant step forward.

Its chief, Eldridge Laurence Timis, said the increase from RM600 million reflects Putrajaya’s commitment to Sabah’s rights under the Malaysia Agreement 1963 (MA63).

“This is not a replacement for the 40pc revenue entitlement, but an interim measure while negotiations are ongoing,” he said in a statement.

He added that the higher allocation demonstrates the Madani government’s seriousness in ensuring Sabah receives greater financial benefits pending a long-term resolution.

Eldridge also dismissed criticism that the payment undermines Sabah’s claims, noting that previous administrations had provided lower interim amounts and failed to resolve the issue.

He said the RM1.5 billion allocation marks the highest ever interim payment to Sabah and should be viewed as progress toward a fair and sustainable settlement.