KOTA KINABALU – Sabah's 40% revenue entitlement would have to go with the state Barisan Nasional proposing a realistic and fresh deal, said Datuk Seri Bung Moktar Radin.
The Sabah Umno chief said the state rights issue will be dealt with from a different angle given that the 40% revenue-sharing formula has never been realised since 1963.
“The Malaysia Agreement 1963 (MA63) issue has been around for a long time and raised by the leaders from Sabah.
“Individuals have gone to jail for this and others became very emotional about it.
“This is why we must discuss with the peninsula (the federal government)... if the 40% (revenue entitlement) cannot be delivered, we make another deal,” he said when asked if the 40% revenue entitlement would be included in Sabah BN’s manifesto.
The 40% revenue entitlement refers to the revenue-sharing formula.
Bung Moktar said he is not rejecting or disagreeing with MA63, and wants the public not to get him wrong as he is not opposing the legacy issue.
However, the Lamag assemblyman said Sabah has not received its 40% entitlement since 1963 and therefore, BN will not pursue impossible goals.
“So we deal only with things that can be implemented. We can start small. If they give us 40% now, they must also provide Sabah security, health, and education.
“No federal government of any country gives 5% royalty from oil and gas to the states, except Malaysia.
“No, no, we will go for a manifesto that can make relevant requests. I’ll go on the basis of being realistic and facts. I don’t want to cheat the people,” he said.
Article 112C and Part IV contained in the tenth schedule of the federal constitution provides that two-fifths, or 40% of the revenue the federal government collects from Sabah is returned to the state, which refers to it as a “special grant”.
The same provisions are also referred to in MA63 under “Borneo states”.
Article 112D of the federal constitution provides for a review of the grant every five years.
The 60:40 sharing formula was based on the arrangement that Putrajaya would provide Sabah with security, education, and health by taking the larger share.
On December 14 last year, the Dewan Rakyat passed constitutional amendments to restore the original status of Sabah and Sarawak as equal partners in the federation of Malaysia, as well as defining the terms of the federation to include MA63.
Following the first review, between 1969 and 1973 Sabah was paid in accordance with the formula agreed, with the last payment at RM26.7 million.
But a second review in 1974 and subsequent reviews never took place as constitutionally required, leaving Sabah to get RM26.7 million as a fixed amount until 2019.
The Pakatan Harapan federal government later doubled the special grant to RM53.4 million in 2019, but reverted to RM26.7 million in 2021 under the Perikatan Nasional government.
This comes as the Sabah and Sarawak governments have rejected PH’s revenue-sharing formula.
The amount later increased by 470% to RM125.6 million in 2022.
But Sabah maintains that it will continue to pursue the 40% formula. – The Vibes, November 9, 2022
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