Sabah’s constitutional entitlement to 40% of the net revenue derived by the Federal Government from the state is not limited to the interim payment of RM1.5 billion for 2026, said Minister in the Prime Minister’s Department (Sabah and Sarawak) Datuk Mustapha Sakmud.
He said the interim special grant had been increased from RM600 million previously, with the remaining RM900 million to be implemented this year.
“However, it must be understood that the implementation of the 40% right for Sabah does not stop with the interim payment. In fact, it continues in accordance with the provisions of the Constitution,” he said in his Malaysia Day 2026 message today.
Mustapha also said the Malaysia Agreement 1963 (MA63) should continue to be treated as a national narrative to ensure the spirit behind the formation of Malaysia is reflected in the lives of all Malaysians.
“MA63 should not be a Sabah and Sarawak narrative alone. MA63 is a national narrative. That is the true meaning of a federation,” he said.
He said one of the key developments in implementing MA63 was the agreement in principle to increase Sabah and Sarawak’s parliamentary seats, taking into account the need for appropriate representation in the Dewan Rakyat.
“The increase is not merely about numbers but ensuring the voices of the people of Borneo are taken into account in important national policy decisions,” he said.
Mustapha said progress had also been made in the borneonisation of Federal posts in Sabah and Sarawak, while the Federal Government was giving serious attention to Sabah’s special grant rights under Articles 112C and 112D of the Federal Constitution.
He said the Federal Government’s approach under Malaysia MADANI was based on negotiation and finding solutions.
“This is the Malaysia MADANI approach. We choose negotiation over confrontation. We choose solutions over slogans,” he said.
Meanwhile, Mustapha said the Sabah and Sarawak Affairs Division (BHESS) would work with the Malaysian Parliament’s Backbenchers’ Club to establish Friends of BHESS to broaden understanding of MA63 among MPs and senators.
He said Malaysia Day should also serve as an opportunity to strengthen unity, with differences in political affiliation and opinion respected within a mature democratic framework.
“Malaysian politics must move forward by embracing all citizens of this sovereign nation. Let us uphold the principle of finding points of agreement and respecting the differences among us,” he said.
