Both Prime Minister Anwar Ibrahim and chief minister Hajiji Noor have hailed the 2026 interim payment allocation as a demonstration of genuine commitment towards resolving the Sabah special grant issue. (Bernama pic)PETALING JAYA: Prime Minister Anwar Ibrahim announced on Oct 7 that Sabah would receive an interim special grant of RM1.5 billion this year.

Anwar, who is also the finance minister, said Putrajaya and the Sabah government were also working towards a permanent formula for calculating the state’s entitlement to its share of federal revenue, as provided for in the Federal Constitution.

Tabling Budget 2027 in the Dewan Rakyat, the prime minister acknowledged that the special grant payments to Sabah had “for decades” failed to keep pace with the state’s development needs.