MPs seek grant formula and faster delivery for Sabah and Sarawak

Malaysian MPs have called for a settled special grant formula and stronger oversight of development spending as Budget 2027 increases funding for Sabah and Sarawak. During the Dewan Rakyat's policy-stage budget debate, they sought answers on revenue-sharing negotiations and measures to prevent project delays.

Datuk Seri Doris Sophia Brodi (GPS-Sri Aman) welcomed the rise in interim special grants for the two states from RM600 million to RM1.5 billion. She urged the federal government to move faster on a transparent, objective and sustainable final formula under Article 112D of the Federal Constitution, consistent with the Malaysia Agreement 1963 (MA63).

Datuk Mohd Kurniawan Naim Moktar (BN-Kinabatangan) sought an update on negotiations over Sabah's right to 40 per cent of federal net revenue derived from the state. He also requested details of how that revenue would be verified and the government's target timetable for reaching an agreement with Sabah.

Datuk Wetrom Bahanda (KDM-Kota Marudu) suggested creating a Carry Forward Fund so Sabah could retain unused development allocations for the next year. He said this would preserve funding when administrative or technical obstacles delay projects. Sabah's 2027 allocation is RM18.7 billion, up RM1.1 billion from the previous year, he noted.

Datuk Seri Wilfred Madius Tangau (GRS-Tuaran) asked how much of Sabah's 2026 development funding had been disbursed and spent, alongside figures on projects handled by state and federal public works departments. His proposals included resolving land, approval and utility issues before work starts, publishing project progress and expenditure, and requiring recovery plans for troubled projects. He also proposed empowering Sabah JKR as the technical agency for federal projects worth RM50 million or less.