[UPDATED] Federal special grant for Sarawak raised to RM300 mil: Anwar

KUCHING – Putrajaya’s decision to increase Sarawak’s special grant to RM300 million must not be taken by other states as favouritism, but as fulfilment of the Malaysia Agreement 1963 (MA63), Prime Minister Datuk Seri Anwar Ibrahim said today.

Announcing the increase to RM300 million from RM16 million today, he said implementing the state rights of Sabah and Sarawak was about honouring a commitment.

Calling it “just and proper”, Anwar – who was on an official visit to Sarawak today – said the decision should not be viewed as favouritism towards the East Malaysian states.

He said he received a text message from a menteri besar, whom he did not name, asking why Sarawak had received RM300 million, to which Anwar said that it was about fulfilling the MA63.

“Actually, this matter should also be explained to all the menteri besars. He asked why there is an exception, from RM16 million to RM300 million, and whether my actions were to protect political interests in Sabah and Sarawak.

“This is not true. They must understand what MA63 is. This is not my agreement. This was done by the founding fathers,” Anwar said after chairing the MA63 action implementation meeting at the Sarawak assembly complex in Petra Jaya here today.

Also present were Sarawak Premier Tan Sri Abang Johari Openg, Sabah Chief Minister Datuk Seri Hajiji Noor, Deputy Prime Minister Datuk Seri Fadillah Yusof, and Minister in the Prime Minister’s Department (Sabah and Sarawak Affairs and Special Functions) Datuk Armizan Mohd Ali.

Anwar also said the RM300 million amount for Sarawak was “a start”, while Sabah would receive RM260 million as a special grant, pending a revised formula.

He said the formula for a reasonable grant to the two states was to be reviewed once every five years but this had not happened. The matter of special grants to the two states is provided for under Article 112D of the federal constitution.

On gazetting the status of Sabah and Sarawak as regions, Anwar said this will have to involve the Conference of Rulers and Parliament.

“I have not referred this matter to the rulers but only had an early discussion with the Yang di-Pertuan Agong. We must respect the process.”

Anwar assured that the federal government is clear on the status of Sabah and Sarawak as regions and entities that formed the Federation of Malaysia along with the peninsula states.

This is clear from a constitutional amendment to revert the status of Sabah and Sarawak to be recognised as regions, he added, besides moves by the federal government to devolve regulatory rights for gas resources and electricity in Sabah to the state.

More recognition for Sarawak

Anwar today also announced other moves and plans that showed the federal government was in the process of giving Sarawak more rights over its own affairs and its position in the federal administration.

He announced the appointment of Sarawak Financial Secretary Datuk Seri Wan Lizozman Wan Omar as a member of the Inland Revenue Board with immediate effect.

He said Sabah is already represented on the IRB but the existing member is not the current state government’s choice. There is, however, no need to replace the person for now, Anwar added.

Anwar, who is also finance minister, said the ministry had given preliminary approval for an additional allocation of RM1 billion for upgrading works on customs, immigration, quarantine, and security checkpoints at the Sarawak and Sabah borders.

The prime minister also said he has informed the Sarawak premier and Sabah chief minister that the RM50 million cap on development projects that both states have autonomy over can be further raised if the current arrangement runs smoothly.

Anwar also announced that any lands previously given to the federal government as far back as the 1970s for the purposes of education and health – but have yet to be developed – would be returned to the states.

He said these lands would be returned at the price at which they were originally sold, which he said would be “very, very cheap”.

The return would be done within a three-month time frame to first ascertain that no developments would be taking place, he added.

Anwar said this formula will be applied not only to Sabah and Sarawak but to all the states in the peninsula, adding that the technical implementation of this policy will be overseen by Fadillah. – The Vibes, January 20, 2023