PUTRAJAYA, Oct 22 — Prime Minister Datuk Seri Anwar Ibrahim today responded to criticism over the debate on Sabah and Sarawak’s tax contributions to the federal government, saying some parties were attempting to turn the issue into “cheap politics”.
Anwar said it was unfair for certain quarters to raise the matter now, claiming that some of them — including “former ministers and prime ministers” — had previously opposed efforts to increase allocations for the two states.
Speaking at the National Integrity Address here, Anwar said the special revenue-sharing arrangement with Sabah and Sarawak had been raised to its highest level under his administration, reaching RM307 million.
“You as civil servants know our job is to uphold the dignity and socio-economic status of all states. That’s why we cannot view things solely through the lens of a particular race, tribe, or state and deny others their interests,” he said.
“In 2025 we raised it (special grant for Sabah) from RM126 million to RM300 million, and to RM600 million for 2026. How much did we allocate for Sabah’s development in 2025 and 2026? RM17 billion,” he added.
“I am explaining all this because when we discuss governance and integrity, everything must be viewed holistically. If I don’t do this, we become victims of cheap politics.”
Earlier today, Anwar held a special briefing session in the Dewan Rakyat following the Kota Kinabalu High Court’s ruling on Sabah’s 40 per cent federal revenue entitlement.
He said the judgment could invite misleading interpretations, giving the impression that the federal government only takes revenue from the state without contributing to its development.
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