Federal, Sarawak governments to finalise special grant review this year

KUALA LUMPUR (Feb 11): The Federal Government will hold negotiations with the Sarawak state government this year to review the amount of the special grant under Article 112D of the Federal Constitution, the Ministry of Finance (MOF) said.

MOF said the talks aim to establish a new method for calculating future special grants, taking into account Sarawak’s needs in covering state service costs and the Federal Government’s financial position, in line with Article 112D.

On the special grant for Sabah, the Federal Government continued negotiations with the state government on Nov 17, 2025 and Jan 28, 2026, to review the amount under Articles 112C and 112D of the Federal Constitution.

“The discussions considered Sabah’s needs regarding state service costs as well as the Federal Government’s financial position,” MOF said in a written reply in the Dewan Rakyat, published on Parliament’s website today.

MOF was responding to a question from Rodiyah Sapiee (GPS-Batang Sadong) on the latest status of finalising the new special grant formula for Sabah and Sarawak under Article 112D of the Federal Constitution.

It added that the Sabah state government and the Federal Government are committed to concluding the negotiations within the stipulated timeline.

The discussions also include the implementation schedule and the Federal Government’s commitment to the principle of fiscal equity as provided under the Malaysia Agreement 1963. – Bernama