Sabah’s 40% Special Grant Entitlement to be Finalised Soon

Sabah and the Federal Government will finalise Sabah's 40 per cent special grant entitlement soon. "The good State-Federal relationship brings many benefits, including the finalisation of the Federal Government's obligation regarding the 40 per cent revenue entitlement payment for Sabah," Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor said on 6 December 2025 at the Sentuhan Madani programme, officiated by Prime Minister Datuk Seri Anwar Ibrahim, at the Sabah International Convention Centre (SICC), Kota Kinabalu.

"We believe that a close and strong relationship is not only necessary but vital for continuous progress. This includes matters of sovereignty, security, unity, and nationhood," said the Chief Minister.

The Chief Minister said that the GRS-led will fulfil its responsibilities and promises. Sabah's development policy will continue to be guided by the Hala Tuju Sabah Maju Jaya 2.0 plan which include the establishment of three new industrial parks - an Industrial Park for the Blue Economy Industry in Kudat, an Oil and Gas Industrial Park in Beaufort and an Industrial Park for High Technology and Semiconductors in Kota Belud and Kota Marudu. Hajiji said the government will continue the Rumah Mesra SMJ program with 50 additional units for each state constituency; RM300 monthly financial assistance for 100,000 recipients; new financial assistance for senior citizens aged 60 and older; a deposit financing incentive for first-time homebuyers; and allocating RM1.2 billion for water supply, starting in June 2026.

The Federal Government has pledged RM765 million to complete the Sabah Southern Link Project, connecting the West Coast electrical grid to the East Coast to resolve power disruptions in the East Coast.