Anwar Doubled Sarawak's Grant; The Permanent Settlement Is Still Pending

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Prime Minister Datuk Seri Anwar Ibrahim announced last night (16 September) that Sarawak’s interim special grant will be increased to RM1.5 billion, up from RM600 million previously.

He made the announcement at the national-level Malaysia Day 2026 celebration at the Borneo Convention Centre Kuching (BCCK).

“In the spirit of solidarity, friendship and the spirit of Malaysia, tonight I announce RM1.5 billion for Sarawak as well; this is the result of friendship and good negotiations,” Anwar said.

The increase is effective this year and takes Sarawak’s grant to more than double its previous amount.

The move follows a similar announcement for Sabah five days earlier.

On 11 September, Anwar said Sabah’s interim allocation would immediately rise to RM1.5 billion, in response to a request from Sabah Chief Minister Datuk Seri Hajiji Noor during the Malaysia Agreement 1963 (MA63) Implementation Action Council meeting in Kota Kinabalu.

Anwar referenced that earlier announcement in Kuching, framing Sarawak’s increase as bringing both Borneo states onto equal footing.

The RM1.5 billion figure matches what Tamin assemblyman Ir Christopher Gira Sambang had called for days earlier.

On 12 September, the Parti Rakyat Sarawak (PRS) lawmaker described the special grant as Sarawak’s constitutional right rather than a federal gift.

He had also called on the Federal Government to set a clear timeline for finalising a permanent formula, and for Anwar to address it directly during the Malaysia Day celebrations.

Anwar said the Federal Government will continue negotiations with the Sabah and Sarawak state governments to finalise a sustainable formula for determining the annual Special Grant rate.

The RM1.5 billion figure is described as an interim measure, not a permanent settlement.

Sarawak’s Yang Dipertua Negeri, Tun Dr Wan Junaidi Tuanku Jaafar, was the guest of honour at the Kuching celebration.

Anwar also touched on the Petronas-Petros commercial agreement, calling for it to be finalised as part of broader federation issues under the Malaysia Agreement 1963.

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