KOTA KINABALU: The interim payment of RM300mil to Sabah and Sarawak will be doubled following discussions with the Borneo state leaders, says Deputy Prime Minister Datuk Seri Fadillah Yusof.
He said Prime Minister Datuk Seri Anwar Ibrahim has agreed to it.
Disclosing this after the Malaysia Agreement 1963 (MA63) implementation action council meeting held for the first time here, Fadillah said Sabah and Sarawak will each get RM600mil starting 2025.
The Prime Minister will include the interim payment provisions under Budget 2025 to be tabled later this year, he told reporters after a two-hour meeting yesterday.
The interim payment was agreed upon while negotiations are ongoing on the formula to return Sabah’s 40% net revenue owed to the state.
A new rate of RM125.6mil was agreed on in 2022, which was enforced through the gazetting of the Federal Constitution (Review of special grant under Article 112D) (State of Sabah) Order 2022 dated April 20, 2022, for five years.
This replaced the old grant rate amounting to RM26.7mil, which was gazetted on Sept 18, 1970, as provided for under the Sabah Special Grant (First Review) Order 1970.
The special grant for Sabah was raised further to RM300mil for 2023 through the gazetting of Federal Constitution (Review of special grant under Article 112D) (State of Sabah) Order 2023 on Nov 24, 2023.
The technical committee meeting, which was attended by Sabah Chief Minister Datuk Seri Hajiji Noor and Sarawak Premier Tan Sri Abang Johari Tun Openg, also agreed to a high-level discussion on the two Borneo states’ claim, including the return of the continental shelf under the Territorial Sea Act 2012, royalties and stamp duty, among other things.
Fadillah said matters which they agreed to disagree on will be discussed between the Prime Minister, Sabah Chief Minister and the Sarawak Premier to find a resolution. He said the continental shelf is among the issues which cannot be resolved in the committee and that is why it has to go to higher levels, which would be updated in three months’ time.
“At the end of the day, the federal will be guided by the Attorney General and the state will be by the respective state AGs,” Fadillah said.
He said PMX has achieved a lot during this short period of time, including recognising the Sabah and Sarawak Works Department as a technical department, the return of regulatory power for gas supply, amendment to the Inland Revenue Board Act 1995 (Act 533) to appoint representatives from Sabah and Sarawak as permanent board members and the return of Sabah Electricity Sdn Bhd to the state.
