Sabah must secure full 40 pct Special Grant to fund RM200 bln in development needs, says STARSabah man

KOTA KINABALU (Feb 14): Sabah requires more than RM200 billion in development funding to address critical gaps in infrastructure, utilities, health, education, and economic growth, and must secure its full 40 per cent Special Grant entitlement under the Federal Constitution to do so, said STARSabah Information Chief Anuar Ghani.

Anuar said the state’s legal position on the 40 per cent claim was reinforced by a High Court ruling on Oct 17, 2025, in a case brought by the Sabah Law Society (SLS).

“Sabah succeeded in obtaining an order of Mandamus compelling a review of the 40 per cent Special Grant from 1974 to 2021 within 90 days, and to reach an agreement within 180 days,” he said in a statement.

The court also granted an order of Certiorari to quash interim payments gazetted in 2022, 2023, and 2025, and accepted the formula for calculating the 40 per cent entitlement as presented by SLS. The federal government has since filed an appeal.

“If the appeal succeeds, it will completely overturn the ruling of Oct 17, 2025,” he said.

He acknowledged that the Gabungan Rakyat Sabah (GRS) government under Chief Minister Datuk Seri Panglima Hajiji Noor had secured RM600 million for 2024 and 2025 — significantly higher than the RM54.7 million obtained in 2018.

He also credited STARSabah president Datuk Seri Panglima Dr Jeffrey Kitingan for raising the 40 per cent issue as early as 2006 in his book Justice for Sabah (J4S), describing the claim as central to Sabah’s rights under the Federal Constitution, the Inter-Governmental Committee (IGC) Report, and the Malaysia Agreement 1963 (MA63).

“Justice for Sabah can only be achieved if Sabah gets all its constitutional entitlements,” he said.

“Justice for Sabah can only be achieved if Sabah gets all its constitutional entitlements,” said Anuar.

Citing figures from the 2026 State and Federal Budgets and the 13th Malaysia Plan (13MP), Anuar outlined Sabah’s urgent infrastructure requirements.

For food security, RM1.6 billion is needed for irrigation in key padi-growing districts to raise self-sufficiency to 60 per cent by 2030.

Flood mitigation will require at least RM17 billion to address recurring floods in multiple districts across the state. Road infrastructure remains severely underfunded.

While Sabah is expected to receive RM843.21 million in 2026 under the Malaysian Road Records Information System (Marris), upgrading or constructing 200km of state roads in each of the 73 constituencies, including bridges and related amenities, could cost up to RM100 billion.

Anuar also called for the completion of the Pan Borneo Highway phases and clarity on allocations for cross-border roads linking Sabah to Kalimantan.

Sabah’s water infrastructure, he said, requires urgent attention.

Approximately 1,200km of ageing pipes need immediate replacement at an estimated cost of RM1.8 billion, while replacing all 20,000km of pipes statewide would cost about RM30 billion.

“There is no point building more treatment plants if water cannot reach consumers. Non-revenue water remains around 60 per cent,” he said.

Electricity demand is projected to rise from 1,221MW to 2,600MW by 2036.

To meet future demand with adequate reserve margins, Sabah needs between RM15 billion and RM20 billion for new generation capacity, including gas turbines and renewable energy expansion, he said.

Under Budget 2026, the federal government has allocated RM4.65 billion for health nationwide, with specific allocations in Sabah including the Sabah Heart Centre at Queen Elizabeth II Hospital and 13 new clinics.

Anuar said the state should seek greater control over public health funding under the Concurrent List of the Federal Constitution.

In education, he highlighted the urgent need to upgrade 185 dilapidated schools, estimating at least RM92.5 million for classroom repairs alone.

He emphasised that autonomy, syllabus reform to include MA63 and Sabah history, STEM and TVET expansion, bilingual proficiency, and digitalisation must all be prioritised.

On tourism, Anuar proposed the establishment of a Special Tourism Investment Zone (STIZ), potentially centred around Kinabalu Park and the Kinabalu Unesco Global Geopark districts.

He noted that only RM493 million has been approved under the 13MP for 53 tourism development projects in Sabah.

Anuar argued that, as equal partners in the federation, Sabah and Sarawak should receive equitable allocations.

“If Malaya, Sabah and Sarawak are equal partners, logically the national budget should be split 50/25/25,” he said.

Based on a RM470 billion Federal Budget 2026, this would translate to RM117.5 billion each for Sabah and Sarawak.

He also suggested invoking Article 112D(6) of the Federal Constitution, including the appointment of independent assessors if negotiations on the 40 per cent Special Grant fall short.

Sabah’s gross domestic product (GDP) reached RM84.3 billion in 2024, its highest since the pandemic.

However, GDP per capita at RM30,605 remains far below that of Sarawak and Peninsular Malaysia.

“Sustainable income growth depends heavily on investment. We need clear data to determine how much investment is required to significantly raise GDP per capita,” he said.

Anuar called for transparency, good faith, and full disclosure of revenue figures from 1974 onwards to facilitate negotiations on arrears and future payments.

“13MP and future Malaysia Plans must be reset to take into account Sabah’s needs,” he said.

He warned that unless Sabah receives what is constitutionally due, the promise made in 1962 of equal partnership risks becoming “a living lie”.

“Much work, calculation and negotiation must be done. What Sabah needs now is transparency, urgency and justice,” he added.