Data grouping

I have some difficulty during report creation and the data display show from tables itself are "LABUAN" AND "SABAH".  I want this 2 states of LABUAN group as SABAH.   But, of course, the quantity for the Month - JANUARY will carry forward base on the figure from LABUAN will group into "SABAH". 
For example ;
STATE         QUANTITY
SABAH             1000
LABUAN             500
I  want the state "LABUAN" will group as 'SABAH' .  Instead the Quantity will group into 1 as well.
Can this works from the query ?   I have try out using the UNION ALL, but, it doesn't work.  Can you please assist what kind of query I should use.

Thank you.
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