BOTH Sabah and Sarawak will see their special entitlements doubled to RM600 million next year, Deputy Prime Minister Datuk Seri Fadillah Yusof announced today.
Fadillah, who chairs the Malaysia Agreement 1963 (MA63) Implementation Action Council Technical Committee, said this is an increase from this year’s special allocation of RM300 million. He explained that the 40% revenue-sharing formula could not be prioritised at this time, and the current payments are an interim measure under Article 112D of the Federal Constitution.
“The prime minister has decided to raise the interim allocation from RM300 million to RM600 million for each state,” Fadillah said. “This was initially expected to be revealed during the national budget tabling, but the Prime Minister announced it in today’s MA63 Implementation Action Council meeting in Kota Kinabalu, chaired by Prime Minister Datuk Seri Anwar Ibrahim.”
When asked about the reaction of the chief minister and premier to the new special entitlement, he responded, “They accepted the figures with an open heart.”
The two-and-a-half-hour meeting was also attended by Sabah Chief Minister Datuk Seri Hajiji Noor and Sarawak Premier Tan Sri Abang Johari Openg.
Fadillah noted that while several issues were resolved during the meeting, some remained unsettled. “There are matters where we ‘agree to disagree,’” he said, citing unresolved issues such as sea borders, oil royalties, parliamentary representation, and stamp duty.
“These issues remain complex due to differing legal interpretations between the federal and state governments. Discussions will continue,” he added.
Fadillah also said he would not comment on the 40% revenue entitlement or the Territorial Sea Act 2012, as both matters are currently before the courts. He referenced an ongoing judicial review in the High Court and an originating summons filed by a Sabah NGO. “It is sub judice to comment on these matters,” he said.
He further explained that the complexity of the Territorial Sea Act could not be resolved by the technical committee and would be referred to the prime minister, Sabah chief minister, and Sarawak premier for further deliberation.
Fadillah also mentioned progress on the partial devolution of the education sector for both Sabah and Sarawak. Sabah is still in the negotiation phase, with further consultations needed between the federal Education Ministry and state education department directors, particularly regarding appointments.
He added that the issue of one-third parliamentary representation for Sabah and Sarawak would be discussed at the next technical council meeting, which is expected to take place in the next three months. – September 12, 2024.
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