Local authorities in Sabah and Sarawak will receive federal grants from next year, Prime Minister Datuk Seri Najib Tun Razak said Tuesday.

This would involve an annual allocation of RM62.8 million for the local authorities to enhance their services, he told reporters after the National Financial Council meeting here.

He also announced an increase in service payments to state governments from five percent to 10 percent for the states in Peninsula Malaysia and 12 percent for Sabah and Sarawak.

This would help the states to finance their development and management expenditures, he said. — BERNAMA