The RM300 million grant is a RM40 million increase for Sabah compared with the RM260 million grant Putrajaya announced for the state in January.

Fadillah, who is also the chairman of the Malaysia Agreement 1963 (MA63) committee, said the payments would be made as soon as possible.

“In terms of administration, (the payments of the special grants) need to be gazetted, and today we agreed on a few ways to get it done.

“Once it has been gazetted, the RM300 million (each for Sabah and Sarawak) will be channelled immediately,” he said at a press conference after chairing an MA63 technical committee meeting today.

Fadillah also said a separate committee would be formed to determine and finalise the formula for the annual special grants for the two Bornean states within a year.

Sabah and Sarawak are entitled to special grants under the Federal Constitution.

In January, Prime Minister Anwar Ibrahim announced that the special grant for Sarawak had been raised to RM300 million, while Sabah would receive RM260 million.

This is pending an agreement on the formula for the special grants.

Anwar had also said the special grants would be reviewed every five years so that a more “reasonable” sum could be allocated.