Upko’s Tuaran MP Wilfred Madius Tangau has urged the federal government to provide a transparent formula and payment schedule for Sabah’s 40% revenue entitlement, saying the state’s constitutional claim must not be overlooked while interim payments are being made.
He said the increase in interim payments from RM600 million to RM1.5 billion was welcome, but Putrajaya must clarify whether the amount was calculated using the constitutional formula or was merely a temporary arrangement pending agreement on the actual entitlement.
Speaking during the Budget 2027 committee debate, Madius called for the 40% entitlement to be implemented from 2027, with outstanding claims for earlier years preserved.
He also sought clarification on the remaining RM900 million of the announced RM1.5 billion payment, which the federal government had said would be channelled before the end of 2026.
Madius said the government should disclose the basis of its calculations, including the definition of net revenue, collection data and the method used to determine Sabah’s entitlement.
“Tuaran urges that the 40% entitlement be implemented from 2027, without setting aside previous claims. For this, present calculations that can be reviewed, establish a payment schedule and provide sufficient allocations,” he said in the Dewan Rakyat in Kuala Lumpur on Tuesday.
On another note, Madius also highlighted concerns over the presentation of federal spending in Budget 2027, calling for the same reporting approach to be used for Sabah, Sarawak and Peninsular Malaysia.
He said the RM18.7 billion allocated to Sabah comprised RM7 billion for development, RM8.9 billion for operating expenditure and RM2.8 billion in special grants.
He questioned whether the special grant figure included the RM1.5 billion announced earlier and stressed that federal spending on salaries for teachers, healthcare workers and security personnel should not be treated as payment of Sabah’s 40% entitlement.
Madius also cited a lack of comparable figures for operating expenditure and total development allocations across the three regions.
He referred to Budget 2025 figures showing RM44.5 billion in development allocations for four regions in Peninsular Malaysia, compared with RM6.7 billion for Sabah and RM5.9 billion for Sarawak.
Madius also highlighted the need for clearer industrial development plans for Sabah under the New Industrial Master Plan 2030.
He said the Investment, Trade and Industry Ministry had reported RM39.2 billion in approved investments across 475 projects in Sabah between January 2023 and June 2026, representing 2.9% of national approved investments.
The investments were expected to create 6,646 jobs, while 40 of the 59 approved manufacturing projects were located in three main industrial parks: Kota Kinabalu Industrial Park, Sipitang Oil and Gas Industrial Park and POIC Lahad Datu.
However, Madius said the ministry had yet to explain how Sabah’s specific needs were reflected in the plan, including funding, infrastructure constraints and the proposal to develop POIC Lahad Datu into a national downstream bioindustry hub.
