The increase in the interim special grant for Sabah and Sarawak from RM300 million to RM600 million each, starting next year, shows the federal government’s recognition of the two state’s rights under the Malaysia Agreement 1963 (MA63).

Upko president Ewon Benedick said the decision also recognises Sabah’s constitutional right to 40 percent of its special grant revenue, as enshrined in Articles 112C and 112D of the Federal Constitution.