Sabah secures RM1.5 billion MA63 allocation as Sarawak awaits decision

KOTA KINABALU — Sabah will receive an interim allocation of RM1.5 billion this year under the Malaysia Agreement 1963 (MA63), marking a significant financial boost for the state, according to announcements made here on Tuesday. The allocation represents a step towards fulfilling federal commitments under the constitutional agreement that governs the relationship between the federal government and the two East Malaysian states. The timing of the announcement underscores the federal government's efforts to address long-standing disputes over revenue-sharing arrangements with Sabah and Sarawak. Prime Minister Anwar Ibrahim suggested that Sarawak could expect a comparable decision by September 16, ahead of Malaysia Day commemorations. The move reflects renewed engagement between Kuala Lumpur and the East Malaysian states on implementing provisions of the 1963 agreement, which has been a source of contention for decades. State leaders have historically argued that the original terms have not been adequately honored, particularly regarding financial allocations and development funding. The announcement comes as both Sabah and Sarawak seek greater autonomy and increased federal investment in infrastructure and social services.