Significant signature: Prime Minister Datuk Seri Anwar Ibrahim signing the Malaysia Day special book, witnessed by Sarawak Premier Tan Sri Abang Johari Openg (left) and Sabah Chief Minister Datuk Seri Hajiji Noor, last year. Hajiji and Abang Johari have agreed to enter high level discussions on the rights to Sabah and Sarawak’s continental shelves. — Filepic/The Star
RESOLVING demands in the Malaysia Agreement 1963 (MA63) is more than just realising the key terms spelt out by Sabah and Sarawak when the two regions inked the paper six decades ago to form the Federation of Malaysia with Malaya.
Experts say it is also about honouring the Constitution upholding people’s rights.
Most agree that the 18- and 20-point list of terms made by Sarawak and Sabah respectively before signing the merger to create the new country remain relevant with regards to the two regions’ economic development and administration.
Today, despite the challenges after decades of efforts to uphold MA63, several notable milestones have been achieved; most notably the amendment to Article 1(2) of the Federal Constitution in 2021 to elevate the status of Sabah and Sarawak as regions from their previous status as “states”.
Earlier this year, Deputy Prime Minister Datuk Seri Fadillah Yusof announced that nine basic demands based on the MA63 had also been met.
As of now, 14 demands are being looked into, including oil royalty, petroleum cash payments, the regions’ rights to the continental shelves, and an increase in civil service appointments in Sabah and Sarawak under the Federal Constitution’s Article 112.
Fadillah says it will take some time for the matters to be resolved due to various complexities and strings of reviews, among others. Nevertheless, in terms of progress, can we expect to see more of the key terms fulfilled and developments on the agreement soon?
Slow but steady progress
When asked about the notable progress following the amendments to the Constitution, experts express their takes with some caution instead of being comfortable with current developments.
Universiti Kebangsaan Malaysia Ethnic Studies Institute senior research fellow Assoc Prof Dr Zaini Othman says he would prefer to “reflect and comfortably pen it out in the manner of ‘works in progress’.
“Things are still on the table and all parties involved, especially the newly elected federal government led by Datuk Seri Anwar Ibrahim, which frequently pledges that they are working very hard to find a constructive method to resolve what I call ‘the politics of managing MA63’.
“It’s all about balancing ‘the idealist politics’ on one hand and ‘the real politics’ on the other.”
Institute of Borneo Studies’ Prof Datuk Dr Jayum Jawan from Universiti of Malaysia, Sarawak, says so far the public has not read much on what exactly has been accomplished.
This is other than “some increase in allocation, which does not need any Constitutional amendments, and in fact, there is no guarantee that the next prime minister will follow through with the same amount.”
Prof Jayum also says there has been no details about how Sarawak’s people will benefit from its negotiations with national oil and gas company PETRONAS over the sharing of oil revenue from the region’s off-shores.
“In fact, why is Sarawak negotiating with PETRONAS? The latter is not a government body.
And post amendments made to the Constitution, he points out that the return of Bintulu Port to Sarawak’s authority will “benefit the state’s coffers”.
Sabah and Sarawak’s oil and gas revenue terms under the MA63 remain on the negotiation table.
But how will all of this actually benefit Sarawak’s people?
Prof Jayum says there are many state-centric issues, including infrastructure and development-related matters, that Sarawak needs to look into following the increase in state revenue.
“There are collapsed bridges in Kapit, while the former resettlement schemes of Nanga Tada, Nanga Ngungun, and Nanag Jagau as well as Sekuau are still lacking and lagging in infrastructure.
“Also, despite the Pan-Borneo road’s construction, there is not enough increase in economic activities to sustain the livelihood of the resettled people in these four security resettlement schemes.
“My recent visit discovered major disappointment among the settlers, who felt that they have been abandoned, not given comprehensive help to chart their future by either the federal or state government.”
Very relevant
It does not help that there are some who question the relevance of ongoing efforts to champion MA63.
Noting that calling for the realisation of MA63 is not about meeting the regions’ demands per se, Zaini stresses that this issue should not be raised at all, since it centres on honouring the Constitution and the rights of the country’s founders.
“To me, it is not about ‘how relevant’ (is the agreement). It is all about the concept and form of our country. On Sept 16, 1963, all parties and entities agreed to form a ‘federal state’ named ‘Persekutuan Malaysia’ (Federation of Malaysia).”
He says the concept of Malaysia’s federacy should already ascertain the standing of the key terms in MA63.
“The federation managed to exist under the auspicious agreement of MA63. It is under this particular ‘political philosophy and nuance’ that all Malaysians have to abide by ‘the federalist agreement’ as spelt out within the agreement, which is structurally manifested and enshrined in the Malaysia Constitution 1963.
“In other words, as long as Malaysia recognised herself as a ‘federal state’, no questions about ‘the relevancy’ of the MA63 should arise unless all parties agree to change the concept and form of the country from federal to non-federal state.”
Ongoing talks
On Friday, Anwar sat with Sabah and Sarawak leaders to chair the MA63 Implementation Action Council in Kota Kinabalu. Those in the know say the meeting proceeded cordially, as the Prime Minister was already prepared to announce a piece of good news which some say signifies the Federal Government’s commitment to resolving the MA63 key terms.
Sabah Chief Minister Datuk Seri Hajiji Noor later expressed his elation after Anwar announced an RM300mil increase in the interim special grant – now at RM600mil – from the Federal Government for next year.
The special grant is made pending resolution of Sabah’s 40% revenue entitlement.
Hajiji, in earlier reports, had said the fundamental Constitutional rights of the state concerning the 40% revenue special grant are under Articles 112C and 112D of the Constitution, and that the matter is now under the purview of the MA63 technical committee chaired by Fadillah.
Other than Hajiji, the meeting was also attended by Sarawak Premier Tan Sri Abang Johari Openg; both have agreed to enter into a high-level discussion on the regions’ respective claims, including the return of the continental shelf under the Territorial Sea Act 2012, royalties, and stamp duty.
But things are not completely easy and breezy. Fadillah says as of now, many technical issues cannot be resolved at the committee level due to differences in legal jurisdictions.
“For instance, Sabah and Sarawak view the land sales’ stamp duty as under their authority, but the Federal Government considers the matter as an instrument of sale under its prerogative.”
What’s next on the table?
Prof Jayum says that Sarawak leaders must stand on the right premise concerning talks with the Prime Minister.
When it comes to negotiations, Prof Jayum says that Sarawak leaders must stand on the right premise concerning talks with the Prime Minister.
“It is neither about demanding nor negotiating, but asking that Anwar’s government honour the long-abandoned agreement.”
It must also be pointed out that “Sarawak need not wait to do better in managing its territory.
“For example, autonomy, it is already there. What else does the territory need? Sarawak has the power to filter unwanted elements from coming in and disturbing peace within Sarawak.
“On education, there is no need to ask for education autonomy. Sarawak already has the authority to set a foundation to help students.
“There is already sufficient power and authority given in the State List under the 9th Schedule of the Federal Constitution.”
Zaini says there are several unresolved MA63 terms related to oil royalties and cash payments for petroleum, oil minerals and oil fields.
“Additionally, there are outstanding matters regarding the Territorial Sea Act 2012, rights over the continental shelf, and an increase in public service appointments in Sabah and Sarawak.”
Despite the latest developments, Zaini says people must realise that measures related to the 40% revenue entitlement for Sabah, for example, remain a work in progress.
“No specific measures have been announced as yet, despite the dissatisfaction expressed by the Sabah government over the slow progress and the ‘neither here nor there attitude’ of the Federal Government.”
Politics also play a role in ensuring MA63’s key terms are met, says Zaini. For instance, he says the political divisions in Sabah have affected negotiations.
“These divisions, in many ways have further marginalised and weakened the negotiating power between the state and federal leadership, and have been cited as major hurdles to realising the agreement’s objectives.
“Former Dewan Rakyat Speaker Tan Sri Pandikar Amin Mulia has emphasised that political unity is crucial to avoid external manipulation and ensure the effective restoration and implementation of the territory’s rights under MA63.”
