Morning Brief

Capitation Grants: Reforming Malaysia’s State Funding Formula


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After 24 years without revision, the Dewan Rakyat has passed the Capitation Grant Bill 2026, updating how federal funds are distributed to states based on population and introducing a 10-year review cycle. Professor Tricia Yeoh, from the University of Nottingham Malaysia, shares her view on how this marks a meaningful step toward fairer and more transparent state funding.


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