Malaysia announces RM1.5 billion special grant for Sarawak

During the Malaysia Day ceremony in Kuching, Prime Minister Anwar, who also holds the finance portfolio, announced a temporary special grant of RM1.5 billion for Sarawak. He explained that the increase mirrors a step taken earlier for Sabah, where the grant was raised to the same amount while constitutional revenue-share issues are resolved. The federal government had previously provided RM600 million to each state, two years after the allocation was lifted to RM300 million.

Premier Abang Johari Openg had suggested that the grant be linked to 5-10% of the federal net revenue, a proposal that Anwar has reportedly accepted in principle. Negotiations between the federal authorities and the two Borneo states will continue to establish a final formula for annual special grants.