Kota Kinabalu: Chief Minister Datuk Seri Hajiji Noor welcomed the doubling of the interim special grant for next year to RM600m as announced by Prime Minister Datuk Seri Anwar Ibrahim at the 1963 Malaysia Agreement Implementation Action Council (MTPMA63) meeting here Thursday.
The Federal Government has paid RM300 million interim special grant to Sabah this year and it is increased by another RM300m.
“Sabah welcomes the RM600 million interim special grant pending the 40 per cent revenue resolution,” he said.
“This is an acknowledgement to Sabah’s development needs and the will power of the Federal Government in fulfilling its obligations to the state,” he said.
The meeting was chaired by Prime Minister Datuk Seri Anwar Ibrahim. Premier Sarawak Tan Sri Johari Tun Openg was also present.
The Chief Minister expressed appreciation for issues under the MA63 that have already been resolved which included the handing over of regulatory power in managing electricity and renewable energy to Sabah early this year and devolution of power.
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“I hope all unresolved issues will be worked upon and implemented for the good of both parties,” he said.
Deputy Prime Minister Datuk Seri Fadillah Yusof said this was one of the key outcomes of the meeting of the Majlis Tindakan Perlaksanaan Perjanjian Malaysia 1963 (MTPMA63).
“The new amount will begin next year. The decision was initially planned for the budget tabling, but the prime minister decided to announce it earlier,” he said.
“This interim payment is due to be reviewed every five years, but the prime minister decided to increase it now,” he added.
Prime Minister Datuk Seri Anwar Ibrahim increased the interim payment last year from RM125.6 million to RM300 million as the federal and two state governments continue negotiations on certain issues where they are not in agreement.
Payments were kept at RM26.7 million until 2021 without any mandatory five-year review until the federal government under Datuk Seri Ismail Sabri increased it to RM125.6 million in 2022.
“Because this is only an interim payment, we will accept it with an open heart. We still need to find a way to come out with the right formula. It’s up to them how to spend it but the important thing is that it is an increase,” he said.
When asked about the 40 per cent, he said it would be subjudiced for him to comment on the matter publicly as it is in legal dispute.
Fadillah said that certain issues could not be resolved at the technical committee level, and had to be discussed at a higher level between the prime minister, the Sabah chief minister and the Sarawak premier.
The issues include maritime borders of the Territorial Sea Act, oil royalty, stamp duty and the increase of Sabah and Sarawak’s share of parliament seats.
“Many of these involve differing interpretations such as stamp duty based on land transactions versus an instrument, which is how the Federal government looks at it,” he said.
