Is the RM125.6 million grant an interim or final settlement for Sabah?

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The RM125.6 million grant to Sabah is an interim arrangement, not a final settlement.

The RM125.6 million grant provided to Sabah is explicitly an interim arrangement agreed upon in April with the previous federal administration. This interim payment is structured to continue for the next five years, concluding in 2026. Crucially, accepting this interim sum does not prejudice Sabah's ongoing pursuit of its claims for the 40 per cent net revenue that is owed to the state.
Interim Arrangement Acknowledged by Federal Government

The special grant rate of RM125.6 million was established as an "interim arrangement" in April. This agreement was made with the understanding that it was a temporary measure, and its gazetting was necessary for the state to receive the payment. This interim status was further clarified in a joint statement issued in April by the Sabah Chief Minister and the then Prime Minister, highlighting that negotiations and formula calculations were still in progress.
Ongoing Claims for 40 Per Cent Net Revenue

Accepting the RM125.6 million interim payment does not affect Sabah's substantive claims for the 40 per cent net revenue. The state government has indicated its intention to pursue these claims vigorously, emphasizing that the current interim rate is significantly lower than what Sabah is entitled to under the federal constitution and the Malaysia Agreement 1963 (MA63). Furthermore, Sabah intends to demand backdated payments for this revenue claim, noting that no new reviews have been conducted since 1973.
Confidence in New Federal Government's Negotiation

The Chief Minister has expressed confidence that the current federal unity government will honour its commitment to negotiate these matters. He has formally communicated Sabah's stance to continue fighting for the reinstatement of the 40 per cent revenue return as stipulated in the MA63. A meeting with the Prime Minister has already taken place, during which the Prime Minister reportedly agreed to give serious consideration to Sabah's demands.

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Is the RM125.6 million grant an interim or final settlement for Sabah?

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