Anwar expected to announce further MA63 breakthroughs on Malaysia Day

DATUK Seri Anwar Ibrahim’s visit to Kota Kinabalu ahead of Malaysia Day is expected to bring significant progress on the Malaysia Agreement 1963 (MA63).

The prime minister, set to arrive in the Sabah capital today, will chair the Majlis Tindakan Perlaksanaan Perjanjian Malaysia 1963 (MTPMA63) on Thursday, where Sabah Chief Minister Datuk Seri Hajiji Noor and Sarawak Premier Tan Sri Abang Johari Openg will also be in attendance.

Both states have asserted their demands for greater autonomy and financial entitlements from Putrajaya.

While portions of the agreement have been fulfilled under Anwar’s administration, MA63 remains a central point of contention to the people of Sabah and Sarawak towards Putrajaya.

Many argue key provisions, especially in areas of state autonomy and financial rights, remain inadequate 61 years after the formation of Malaysia.

The 2021 constitutional amendment incorporating MA63 into the Federal Constitution requires Putrajaya to honour all the agreement’s terms.

Key issues on the table

Sarawak is expected to advocate for autonomy over health and education, sectors that the state believes it can manage more effectively.

Sarawak’s Deputy Law, MA63, and State-Federal Relations Minister Datuk Sharifah Hasidah Sayeed Aman has emphasised that control over these sectors is crucial for addressing the state’s unique needs.

“These matters must be resolved to grant Sarawak full authority, enabling us to take decisive actions,” she said.

Anwar may also face tough questions about reports suggesting that Petronas could challenge Sarawak’s bid for greater control over its oil and gas resources.

Sabah’s 40% revenue entitlement

Sabah’s central demand is the 40% revenue entitlement, which has been denied since 1974.

Under Article 112(C) and Part IV of the Tenth Schedule of the Federal Constitution, Sabah is entitled to 40% of the net revenue collected by the federal government from the state.

A July 12 deadline set by Upko president Datuk Ewon Benedick for a decision on this entitlement has passed without resolution. Benedick is a member of the committee overseeing MA63 implementation.

Sabah had to calculate the collection after requesting the data eight times from Putrajaya. All eight requests went unanswered.  

The state had expected Putrajaya to verify the figures.  

A source familiar with the MTPMA63 meeting said Sabah’s 40% revenue entitlement will be the third item on the agenda.

“This follows updates on the current status of MA63 demands by the Sabah and Sarawak Affairs Division of the Prime Minister’s Department,” said the source.

Other matters expected to be discussed include increased parliamentary representation for Sabah and Sarawak, federal financial obligations under List III of the Concurrent List, Ninth Schedule of the Constitution, and the imposition of stamp duties on land transfers under the Sabah and Sarawak Land Ordinances.

Discussions will also cover oil royalties, petroleum payments, mineral rights, the Territorial Sea Act, and state rights over the continental shelf.

Anwar’s commitment to East Malaysia

Since taking office in 2022, Anwar has significantly accelerated MA63 implementation.

He has committed to realising the rights of Sabah and Sarawak.

His administration had also increased Sabah’s allocation from RM12.9 billion in 2022 to RM16 billion in 2024.

Anwar claims that this had surpassed the state’s 40% revenue entitlement.

But this assertion has drawn criticism from Sabah leaders and lawyers who argued that the prime minister should not conflate the constitutional revenue right and federal financial commitments.

Other devolution includes the regulatory control over electricity and gas supply, deep-sea fishing, and the management of Sipadan and Ligitan islands to Sabah.

Despite these advancements, more complex issues remain unresolved.

Asia studies expert at the University of Tasmania, James Chin said, “With many of the simple devolution problems having been resolved, the main ones are up for discussion now. All the progress achieved over the past few years could be undone by these core issues.”

PM’s packed schedule

Anwar’s schedule leading up to Malaysia Day is expected to be packed, with many anticipating significant announcements on MA63 implementation during the celebrations at Padang Merdeka in Kota Kinabalu on September 16.

Upon arrival, Anwar will attend a state dinner on Wednesday, followed by a visit to a carnival at Felda Sahabat in Lahad Datu on Thursday morning.

The MTPMA63 meeting is scheduled for 2.30pm the same day.

But it will not be until September 16 that announcements of the outcome of the MA63 meeting would be made public.

Anwar is also expected to attend Himpunan Perdana Rakyat in Tawau on October 19. – September 11, 2024