Malaysian PM Anwar announces increased $466 million interim payment to Sarawak

By The Straits Times | Created at 2026-09-16 15:16:30 | Updated at 2026-09-16 16:10:12 56 minutes ago

KUCHING – Sarawak’s interim payment of the special grant under Article 112(D) of the Federal Constitution will be increased to RM1.5 billion (S$466 million), said Malaysian Prime Minister Datuk Seri Anwar Ibrahim.

He said the federal government would continue to negotiate with Sabah and Sarawak to finalise a formula for the amount of the annual special grant.

“The interim payment to both states was previously increased from RM300 million to RM600 million while negotiations were ongoing to review the special grant.

“Then we increased it to RM1.5 billion for Sabah.

“For Sarawak, the state’s financial position is strong but we will also increase it to RM1.5 billion in the spirit of friendship,” Anwar said at the Malaysia Day celebration on the night of Sept 16.

He also announced several improvements to the Budi Diesel initiative, including expanding the transfer of subsidised diesel quotas to any eligible Malaysian citizen.

The transfer was previously limited to immediate family members only.

In addition, registered owners of more than one diesel vehicle can transfer their quota for each vehicle, up to a maximum of three vehicles.

“These improvements are effective immediately,” he said.

Anwar also announced a one-off flight ticket purchase assistance of RM500 to new students at public universities, polytechnics and community colleges for the September/October intake.

“This is expected to benefit 7,095 students who need to take domestic flights between Peninsular Malaysia, Sabah, Sarawak and Labuan to start their studies,” he said. THE STAR/ASIA NEWS NETWORK

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