This increase from RM300 million currently was announced by Prime Minister Anwar Ibrahim at the Malaysia Agreement 1963 (MA63) implementation action council meeting this evening in Kota Kinabalu, Sabah.

Fadillah said this interim increase was initially supposed to be announced under the 2025 budget but the prime minister decided to announce it earlier.

The meeting was also attended by Sarawak premier Abang Johari Openg and Sabah chief minister Hajiji Noor, among others.

“Sabah and Sarawak gladly received the news on the increased amount. However, we are still finding a way to come up with a fixed formula for the special federal grants to both states,” said Fadillah, who is also a Gabungan Parti Sarawak leader.

Putrajaya increased the special grants to Sabah and Sarawak to RM300 million last year. This was a RM40 million increase for Sabah, but a greater increase for Sarawak, which previously only received RM16 million.