The Federal Government has raised Sarawak’s special grant to RM1.5 billion a year from 2026, bringing it in line with the interim rate given to Sabah.
Prime Minister Datuk Seri Anwar Ibrahim said the government would continue negotiations with Sabah and Sarawak to finalise the special grant formula as provided for under the Federal Constitution.
“The Federal Government will continue to negotiate with the governments of Sabah and Sarawak to finalise the Special Grant formula,” he said during the national-level Malaysia Day 2026 celebration at the Borneo Convention Centre Kuching (BCCK) tonight.
Anwar said the increase would take effect this year and was among the government’s measures to strengthen the implementation of the Malaysia Agreement 1963 (MA63).
He also announced a one-off RM500 special flight ticket assistance for eligible new students entering public higher education institutions for the September and October intakes this year.
The assistance covers students at public universities, polytechnics and community colleges who need to take domestic flights between Peninsular Malaysia, Sabah, Sarawak and the Federal Territory of Labuan.
A total of 7,095 students are expected to benefit, with the RM500 assistance to be credited directly into the bank accounts of eligible students to help families cover travel costs.
Anwar said the initiative would complement the FLYsiswa programme and support families facing additional costs when children pursue their studies across regions.
On MA63, Anwar said 13 matters had been finalised, including nine under the current administration.
Among those implemented were the recognition of the Public Works Department (JKR) and Drainage and Irrigation Department (JPS) in Sabah and Sarawak as technical departments, as well as the appointment of permanent representatives from both states to the Inland Revenue Board (LHDN).
Other measures included the transfer of electricity regulatory powers to Sabah, Sarawak’s ownership of Bintulu Port and the handover of MASWings to Sarawak for its rebranding as AirBorneo.
