Will the new grant amount replace payments from 2022 if consensus arrives early?

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New Special Grant Payments Could Replace 2022 Amounts if Early Consensus is Reached

An agreement has been reached between the federal government and the Sabah government concerning the annual Special Grant. This landmark accord will see the grant increase significantly, with potential for the new amount to supersede payments dating back to 2022 if a final consensus is achieved before 2026. The agreement addresses a long-standing issue, with the previous review of the grant rate occurring in 1969.
Increased Annual Grant Amount Agreed

The federal government and Sabah have agreed to a substantial increase in the annual Special Grant, raising it from RM26.7 million to RM125.6 million for the current year. This represents a 4.7-fold increment. Furthermore, the agreed-upon rate will facilitate annual increases to this amount between 2023 and 2026.
Potential for Retroactive Application of New Grant

Should a definitive consensus on the grant amount be reached before 2026, the newly established figure will be applied retroactively, replacing the annual grant payments that would have been made starting from 2022. This provision allows for the immediate implementation of the revised grant structure once all parties concur.
Long-Standing Issue Resolved

The consensus on the Special Grant marks a significant resolution to a contentious issue that has persisted for many years. This agreement was formally reached by a Joint Consultative Committee on February 14, signifying a breakthrough after decades without a rate review, the last of which took place in 1969.
Continued Review and Data Sharing Affirmed

Both the federal and state governments have agreed to continue the review process under the law, without prejudice to their respective rights and obligations. They have also committed to ongoing data and information exchange regarding their finances, acknowledging Sabah's right to rely on the original grant formula as stipulated in Article 112C and Section IV of the 10th Schedule of the Federal Constitution. The review will also consider the state's service cost needs.

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Will the new grant amount replace payments from 2022 if consensus arrives early?

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