KOTA KINABALU, April 14 — The Sabah government said today the federal government’s agreement to increase its annual Special Grant is a positive step towards meeting its ultimate goal of a 40 per cent return in revenue as stipulated in the Constitution.

Chief Minister Datuk Seri Hajiji Noor said it is a welcome development that shows the federal government’s commitment to the state.

"It is a very good development for Sabah. However, negotiations are still ongoing to get the 40 per cent as per agreed in the 1963 Malaysia Agreement,” he said in a statement here.

"It shows that the federal government is prepared to listen to us. This is a positive sign,” he said.

He said that the four-fold increment from RM26.7 million to RM125.6 million beginning this year will benefit Sabah and help propel the state’s Sabah Maju Jaya agenda.

Earlier, the chief minister attended the meeting on MA63 particularly on the Special Grant chaired by Prime Minister Datuk Seri Ismail Sabri Yaakob via video conferencing.

Ismail Sabri and Hajiji later released a joint statement announcing the new grant amount that is still subject to negotiations under Article 112 of the Federal Constitution.  It is the first time the price has been reviewed since 1969.

Premier of Sarawak, Tan Sri Abang Johari Openg was also in attendance.