GRS told to be bold like Sarawak on MA63 issues
Published on: Thursday, September 12, 2024
Rahimah said the MA63 meeting presents an excellent opportunity for Prime Minister Datuk Seri Anwar Ibrahim to back up his words with action, specifically in implementing MA63.
Kota Kinabalu: The Madani Government must demonstrate the same political will in addressing the 40 per cent net revenue entitlement for Sabah as it has shown in implementing the diesel subsidy rationalisation, said Sabah Bersatu Women’s Chief Rahimah Majid.
“The majority of Sabahans expect the Prime Minister to address this issue decisively when he chairs the upcoming Malaysia Agreement 1963 (MA63) meeting on Thursday – nothing less,” she said in a statement, Tuesday.
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“We can no longer tolerate delays or mere lip service from the Federal government, as experienced under previous administrations.
“We also call on the Sabah government to be as bold and resolute as Sarawak in defending our rights and dignity and not to settle for anything less in this meeting.”
Rahimah said the MA63 meeting presents an excellent opportunity for Prime Minister Datuk Seri Anwar Ibrahim to back up his words with action, specifically in implementing MA63.
She recalled that when launching the Malaysia Madani concept, the government pledged to resolve the critical issues outlined in MA63.
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“The return of the 40 per cent net revenue is vital. For over five decades, Sabah has been marginalised and remains one of Malaysia’s poorest states, with eight out of the 10 poorest districts.
“In 1974, the Petroleum Development Act (PDA) granted the Federal government control over oil and gas reserves nationwide, with Sabah and Sarawak receiving a mere five per cent royalty.
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“Despite contributing over half of Malaysia’s total oil output, much of the revenue was diverted to develop the peninsula, to the detriment of Sabah and Sarawak.
“For example, earlier this year, the Federal government approved a RM10 billion LRT project for Penang but only offered Sabah an interim payment of RM300 million for the 40 per cent revenue owed.
“This starkly illustrates how Sabah continues to be short-changed and overlooked.
“PMX now has the chance to rectify this historical injustice by doing what his predecessors failed to do and, in doing so, secure a meaningful and lasting legacy in Malaysia’s history,” she said.
Rahimah reminded that under Article 112C of the Federal Constitution, Sabah is entitled to 40 per cent or two-fifths of the net revenue collected by the Federal Government from the State.
This entitlement of more than RM10 billion annually reflects Sabah’s contribution to the nation’s revenue and special financial rights under MA63.
She noted that the last recorded payment of this 40 per cent entitlement of RM26.7 million occurred in 1973, after which payments continued at RM26.7 million until 2021 without any further mandatory review every five years.
The amounts were raised to interim payments of RM125.6 million in 2022 and RM300 million in 2023.
Decades of negotiations between Sabah and the Federal Government have yet to yield a resolution, so much so that the Sabah Law Society (SLS) has taken up a suit for a judicial review, which is now pending before the courts.
This matter is now under the purview of the Malaysia Agreement 1963 (MA63) technical committee, chaired by Deputy Prime Minister Datuk Seri Fadillah Yusof.
In July last year, Fadillah indicated that a formula for the special grant or net revenue claim was expected to be finalised within a year, by July this year.
However, nothing has transpired since then, and the full MA63 Technical Implementation Council is now scheduled for this Thursday to be chaired by the Prime Minister himself.
Rahimah reiterated that Sabah must never forfeit its constitutional right to the 40 per cent net revenue grant, as outlined in Articles 112C and 112D of the Federal Constitution.
She further criticised the Gabungan Rakyat Sabah (GRS)-led State Government for its lack of commitment, stating that if it were genuinely committed to Sabah’s rights under MA63, it would have convened a Special Assembly sitting and issued a strong declaration on the 40 per cent revenue entitlement.
“To date, there has been little action from the state government. If it is truly serious about defending Sabah’s rights, it must act decisively, not just talk.
“If a Special Assembly sitting had been held and the Federal government still failed to respond appropriately, the State could have pursued legal avenues to seek redress.
“All Sabah politicians must unite to apply strong pressure on the Federal government to honour Sabah’s rights under MA63, as they were elected to protect these rights,” she said.
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