Premier urges Putrajaya to expedite special grant formula

THE federal government has been urged to expedite the finalisation of Sarawak’s Special Grant formula to ensure its obligations under the Malaysia Agreement 1963 (MA63) are fully honoured.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the revision of the grant, effective this year, contributed significantly to the increase in Sarawak’s projected revenue for 2027.

He thanked the federal government for raising the grant from RM600 million to RM1.5 billion as an interim measure pending a formula mutually agreed upon by both parties.

“At the same time, I urge the federal government to expedite the finalisation of the formula so that the obligations under the Malaysia Agreement 1963 (MA63) can be fully honoured,” he said when tabling the Supply (2027) Bill, 2026 on Monday (Oct 12).

Abang Johari said finalising the formula was also vital to safeguarding Sarawak’s constitutional rights.

“This step is not merely financial in nature. It reaffirms the spirit of mutual partnership between the State and the Federation and is vital to ensure that Sarawak’s rights under MA63 and the Federal Constitution are upheld,” he said.

Last Friday (Oct 9), Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim tabled the national 2027 Budget in the Dewan Rakyat.

He said the federal government would continue negotiations with Sabah and Sarawak to finalise a fair and sustainable formula for the annual Special Grant.

Under the national budget, Sarawak is set to receive RM16.2 billion in federal allocations next year, an increase of RM1.1 billion from RM15.1 billion this year.