PRIME MINISTER Datuk Seri Anwar Ibrahim has emphasised that disputes arising from the Malaysia Agreement 1963 (MA63) must be resolved through rational discussions and negotiations, rather than confrontation or conflict.
Speaking at the Rancakkan Madani programme here on Sunday, Anwar stressed that the Madani government remains committed to addressing the claims comprehensively, including through discussions within the MA63 Implementation Action Council’s Technical Committee, chaired by Deputy Prime Minister Datuk Seri Fadillah Yusof.
"At present, we are holding discussions. Datuk Seri Fadillah leads the technical committee, and we convene meetings to deliberate together. If an agreement is reached, we implement it; if not, we discuss again and vote. This is the way we cooperate, not to ‘fight’," he said.
The event was attended by Communications Minister Datuk Fahmi Fadzil, Chief Secretary of the Ministry of Communications Datuk Seri Mohamad Fauzi Md Isa, and over 2,000 participants, including university students and local community members.
Touching on Sabah’s demand for 40 per cent revenue restitution, Anwar urged all parties to first understand the matter fully.
"I was at Jalan Gaya earlier, hearing cries about Sabah’s 40 per cent revenue. Listen first, understand first. It is indeed in MA63, but over the past three years since the Madani administration took office, we have already been discussing it," he said.
On 23 October, Fadillah noted that 13 of the 29 MA63 claims had been classified as resolved.
Anwar, who also serves as Finance Minister, explained that the federal government spends RM17 billion annually in Sabah, covering education, health, security, and infrastructure development such as schools and clinics. He noted that this far exceeds the state’s revenue of around RM10 billion per year.
"We take RM10 billion in revenue and return RM17 billion. Why? Because this is the result of cooperation between the Federal Government and the state.
“We use the revenue to develop all states in Malaysia. Sabah is slightly behind, so we provide more assistance. Kelantan and Perlis, even under opposition rule, we still assist. Solving annual flood problems alone costs billions. Our duty is to take care of Malaysia – the children of Sabah, Kelantan, Perlis, they are all children of Malaysia. We want everyone to live well and happily," he said.
Anwar added that Malaysia’s development requires capable leadership that can unite citizens of diverse ethnic backgrounds to strengthen national unity.
"The true greatness of a leader does not lie in the ability to fight, but in the willingness to cooperate and foster unity among Malaysians of various backgrounds. Whether a leader is Murut, Kadazan, Dayak, Bugis, or Suluk, their greatness is reflected in their readiness to collaborate and strengthen cohesion among us," he said.
The Prime Minister reaffirmed the Madani government’s commitment to work tirelessly for the benefit of the people, despite no longer being as young as he once was. He urged Sabahans to understand federal expenditure before raising questions about the state’s 40 per cent revenue claims.
"At the market earlier, someone asked, 'Datuk Seri, 40 per cent, 40 per cent.'
“So I replied, listen first… How much does the Federal Government spend on Sabah? Building schools, medical facilities, doctors, ESSCOM border security, border control, defence… I am not defending past governments. I want to explain the Madani administration: in 2024, total federal revenue, including income tax and other taxes, is RM10 billion, Sabah’s revenue collected by Putrajaya… Listen first…
“How much does the Federal Government spend on Sabah… We take RM10 billion in revenue and return RM17 billion, because we cooperate between federal and state to develop the whole country, and since Sabah is slightly behind, we assist more," he said during the Rancakkan Madani Sabah programme at the Sabah International Convention Centre (SICC) in Kota Kinabalu.
He added fairness in national revenue distribution must include all states, including poorer states like Perlis and Kelantan.
"Kelantan is a poor state, facing annual floods, we spend billions… If Perlis thinks only of Perlis, Sabah thinks only of Sabah, our country will not progress. Sabah’s children are also Malaysian children.
“We want to uplift Sabah, but we must also uplift Malaysia," he said, while also criticising those who questioned the government’s approach despite past administrations failing to fully address Sabah’s 40 per cent revenue claims.
"Some say, ‘it should be more’. I ask back, when you were Prime Minister before, how much did you give? You criticise me for giving more," he said. - November 9, 2025
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