RM1.5 Billion Is a Beginning, Not a Final Settlement- Roger Chin

30 May 2026

The announcement that Sabah will receive an interim payment of RM1.5 billion under the 40% Special Grant negotiations is a positive development.

Based on figures previously disclosed by Datuk Seri Masidi Manjun, 40% of income tax and customs collections attributable to Sabah alone amounts to approximately RM3.019 billion. The RM1.5 billion interim payment therefore represents about 49.7% of that figure.

That is a significant improvement from the previous RM600 million interim payment and suggests that the negotiations are moving in the right direction.

However, it must also be remembered that the RM3.019 billion figure is derived only from income tax and customs collections. It does not necessarily capture all federal revenues attributable to Sabah which form part of the broader debate surrounding the constitutional formula.

If revenues generated from Sabah but collected elsewhere are ultimately taken into account, the final entitlement could be substantially higher.

What is therefore critical is that the RM1.5 billion is actually paid in 2026 and that the Review Order expressly states that it is an interim arrangement pending final determination of Sabah's constitutional entitlement under the Federal Constitution.

The interim payment must not become the final settlement by default.

It should be clearly recorded that the amount is paid without prejudice to Sabah's right to pursue the full amount ultimately found to be payable under the constitutional formula.

Equally important, the discussion should not be confined only to future payments.

The issue of the "lost years" remains. Sabah's constitutional entitlement did not arise yesterday. The entitlement has existed for decades and any amount found to have been underpaid remains a matter that must be addressed between the State and Federal Governments.

While the mechanism for resolving those historical sums may ultimately be a matter for negotiation and mutual agreement, the principle should not be forgotten. The focus should not only be on what Sabah receives going forward, but also on how the longstanding shortfall is fairly and honourably resolved.

For many years, Sabah's entitlement appeared frozen. Today, the figures are at least inching forward.

The task now is to ensure that the journey does not stop halfway, and that both the future entitlement and the unresolved past are brought to a just conclusion.