By Olivia Miwil
KOTA KINABALU: The Sabah government will use the increased interim payment from Putrajaya to improve infrastructure and strengthen welfare initiatives for the people, said Chief Minister Datuk Seri Hajiji Noor.
He said the Sabah government had accepted an interim arrangement under which the payment, previously set at RM26 million, had been increased to RM1.5 billion from this year.
"We welcome the prime minister's decision to increase the interim payment, and we will use these funds to build more paved roads in Sabah, construct concrete bridges and improve water and electricity supplies.
"It will also implement development and welfare initiatives for the people of Sabah, such as building more Rumah SMJ houses and expanding the Sentuhan Kasih Rakyat (Syukur) programme.
"In short, whatever we receive from the Federal Government will be channelled back to the people in various forms of incentives and assistance," he said when speaking at Upko's 32nd Anniversary Celebration and 17th Triennial Delegates Conference at Hongkod Koisaan Hall in Penampang near here.
On Sabah's 40 per cent entitlement to federal revenue derived from the state, Hajiji said the government would continue to pursue its right, as enshrined in the Malaysia Agreement 1963 (MA63), through government-to-government negotiations with the Federal Government.
He said the entitlement was Sabah's most significant right under MA63 and was provided for under Articles 112C and 112D of the Federal Constitution.
Hajiji said the Sabah government's position would continue to be conveyed to the Federal Government, including at the MA63 Technical Committee meeting in Putrajaya on Aug 3, which was also attended by Ewon Benedick in his capacity as deputy chief minister.
To date, 13 claims related to MA63 have been implemented, including the regulation of energy, deep-sea fishing licensing and regulation, recognition of the Public Works Department and Department of Irrigation and Drainage under Treasury Instruction 182, administration of the judiciary in Sabah, administration of Sipadan and Ligitan islands, labour and the environment.
Meanwhile, Hajiji said the Sabah government continued to place strong emphasis on financial performance and increasing revenue collection, with annual revenue maintained at RM7 billion since 2022 and expected to rise to RM8 billion this year.
He said the Sabah government had also strengthened the state's economic resilience despite various domestic and global challenges, positioning Sabah as a strategic investment destination.
"In 2025 alone, RM7.6 billion in investments in the manufacturing sector was recorded, representing an increase of nearly 208 per cent compared with 2024," he said.
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