Sarawak welcomes proposed interim payment increase, further discussions expected

SARAWAK has welcomed Prime Minister Datuk Seri Anwar Ibrahim's statement that the state is entitled to a special interim payment similar to Sabah, but insists that any increase should be implemented under Article 112D of the Federal Constitution.

Sarawak Premier Tan Sri Abang Johari Abang Openg said he appreciated the Federal Government's willingness to consider increasing the interim payment in line with the constitutional provision.

"If the government agrees to increase the interim payment under Article 112D of the Federal Constitution, I thank them. If they want to increase it, thank you," he told reporters after officiating the New Horizons, Western Digital Sarawak facility at the Samajaya Free Industrial Zone on Thursday.

Anwar recently told Parliament that Sarawak was eligible to receive a special interim payment similar to Sabah, saying the allocation was consistent with the understanding under the Malaysia Agreement 1963 (MA63).

He also said negotiations on the proposed special interim payment for Sarawak were ongoing with Abang Johari.

However, the Sarawak Premier said no detailed discussions had taken place following the Prime Minister's remarks in Parliament.

"We have not discussed it in detail yet, but when we met in Bintulu recently, he mentioned the matter and said he would look into the possibility of increasing the allocation.

"I simply expressed my appreciation because I have raised this issue several times before," he said.

Abang Johari said further discussions were expected to continue between the Ministry of Finance and the relevant parties to refine the proposal.

Separately, he said Sarawak had also proposed that the Federal Government introduce incentives to support the development of new industries, particularly those related to the green economy and renewable energy.

Among the proposals are tax incentives for hydrogen, including lower taxes on hydrogen and hydrogen-powered vehicles, to encourage the transition to cleaner energy.

"We want Malaysia to become more attractive to investors in new industries. If there are tax incentives, it will encourage more companies to switch to renewable energy," he said. - July 3, 2026