KUALA LUMPUR – The special interim grant of RM300 million for Sabah is expected to be presented during this Parliament session, Minister in the Prime Minister’s Department (Sabah, Sarawak, and Special Functions) Datuk Armizan Mohd Ali said.
He said the Finance Ministry (MoF) is currently in the process of carrying out the necessary procedures.
“If a review of a special grant is mentioned, it must be related to Article 112D of the federal constitution where the conditions must be gazetted through a legal order.
“If there is no gazette notification, it is not a special review rate and I am sure MoF will carry out the procedures,” he said when winding up the debate on the Supply Bill 2024 for his ministry in the Dewan Rakyat today.
Prime Minister Datuk Seri Anwar Ibrahim, when tabling Budget 2024, announced an increase in the special interim grants to RM300 million with immediate effect for 2023.
Meanwhile, Armizan said that so far, there has been no definitive agreement between the federal government and the Sabah and Sarawak state governments on the special grant formula.
He said that the Sabah government remains firm in its stance that the rate should be determined based on Article 112C(1)(a) and Article 2(1) of Part IV, 10th Schedule of the federal constitution, namely, 2/5 or 40 per cent of the revenue obtained by the federation in Sabah.
“At the same time, the basis of the federal government’s stance is that the special grant review should look at the provisions of the federal constitution as a whole, including Article 112C(1), which clearly states the relationship between Article 112C and 112D.
In another development, Armizan said that the federal government and the Sabah and Sarawak governments have also not reached a final decision on the status of petroleum, namely, oil royalties and cash payments, mineral oil and oil fields, the Continental Shelf Act (Act 750), and state rights over the continental shelf.
However, he said that starting in 2020, all parties have initiated a new effort to allow Sabah and Sarawak to have a greater say, greater participation and greater revenue sharing, in the exploration of petroleum resources through an agreement between the state government and Petroliam Nasional Berhad (Petronas).
According to him, this commercial settlement initiative has provided room for Sabah and Sarawak governments to be equally involved in the development of the oil and gas industry with Petronas in both states. – October 30, 2023