KUALA LUMPUR: The federal government together with the Sabah and Sarawak state governments will conduct a joint review of the special grant under Article 112D of the Federal Constitution.
Prime Minister Datuk Seri Anwar Ibrahim said the joint review would take into account the respective state service costs and the financial position of the federal government under Article 112D(2) of the Federal Constitution.
He said the review, effective from this year, serves as an interim resolution while the process to finalise a long-term allocation formula was underway.
"The new grants allocated for Sabah and Sarawak have been raised to RM300 million, starting from 2023.
"The disbursement of the new special allocation rate of RM300 million for the year 2023 was completed yesterday (Nov 28), channelled to the governments of Sabah and Sarawak.
"This interim rate represents a significant increase from the current rates of RM16 million per year for Sarawak since 1969 and RM125.6 million for Sabah in 2022, as determined through the interim review conducted for Sabah in 2022," he said in a statement.
Anwar, who is also the Finance Minister, said the review of special grants for Sabah and Sarawak under Article 112D of the Federal Constitution were gazetted in the Federal Government Gazette on Nov 24.
This, he said, was to implement the new rates based on Article 112D(1) and 112D(5) of the Federal Constitution.
"The government, along with Sabah and Sarawak, are committed to continuing discussions and implementing a comprehensive review of the special allocation rates to finalise the formula provided for under Article 112C of the Federal Constitution."
