KUALA LUMPUR – The governments of Sabah and Sarawak have rejected a special annual grant despite the federal government offering to increase the amount to threefold.
The grant, which is entitlements for both states as stipulated under Article 112D of the federal constitution, was rejected in view of the ongoing revision.
Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said that this means Sabah is only getting RM26.7 million and RM16 million for Sarawak, the original fixed rate under the revenue-sharing formula for East Malaysia after it was doubled during the Pakatan Harapan-led (PH) federal government.
“The federal government is committed to increase (revenue-sharing formula) under Article 112D and has offered to double or triple the amount from the existing rate for the consideration of the Sabah and Sarawak governments.
“This matter is still being discussed to achieve a consensus. Our commitment is to achieve a consensus on the amount over the next five years,” he said when answering questions from MPs during his winding-up speech on Thursday.
Several Borneo MPs have questioned Zafrul on how the federal government could have reverted to the original revenue-sharing formula.
Under the terms of revenue-sharing for Sabah and Sarawak, the former’s entitlement is 40%, while Sarawak receives a fixed amount.
In the case of Sabah, the federal government has, without asking Sabah, decided to provide the state with a fixed payment in 1974, breaking the terms of what was stated in Article 112C and Part IV of the 10th Schedule of the constitution.
In 2019, in an attempt to keep their election pledges, PH decided to double the payments for Sabah to RM54.3 million and Sarawak (RM32 million), with a review of the grants to be done in five years.
The formula did not adhere to the terms of Article 112D for Sabah, which entitles to 40% of the revenue that the federal government collected from the state.
Bandar Kuching MP Kelvin Yii and Sepanggar MP Datuk Azis Jamman had earlier questioned Zafrul why Putrajaya did not retain the higher payment instituted during PH’s time, to which the finance minister stated that both states had rejected them in view of the ongoing revenue-sharing talks.
Yii then asserted that the government should have maintained the payment, instead of reverting, until a decision on the new revenue sharing amount is decided by the reviewing committee.
It was noted that during the winding-up speech by Sabah and Sarawak Affairs Minister Datuk Seri Maximus Ongkili on Budget 2022, the Kota Marudu MP said the states have requested for a postponement of the special committee to review the special grant under Article 112D meeting, which was called two months ago.
Sabah is represented by the state’s finance minister II and Sarawak is represented by its deputy chief minister, with several other top officers in the special committee. – The Vibes, November 20, 2021
