KUALA LUMPUR, October 13 — The unity government remains committed to upholding the consensus established in the Malaysia Agreement 1963 (MA63), with a substantial allocation of RM12.4 billion earmarked for Sabah and Sarawak under the Malaysia Madani Budget 2024. Prime Minister Datuk Seri Anwar Ibrahim, during his budget presentation at the Dewan Rakyat today, revealed that RM6.6 billion has been allocated to Sabah, with Sarawak receiving RM5.8 billion for the upcoming year.
These allocations mark an increase from the RM6.5 billion and RM5.6 billion respectively from the current year’s budget. “In the spirit of MA63, the federal government has also delegated the authority to approve development projects below RM50 million to technical agencies in both states to enhance the efficiency of these projects,” he stated. Furthermore, the Unity Government has substantially increased the Special Interim Grants provided to Sarawak and Sabah, with the allocation rising to RM300 million compared to RM16 million for Sarawak and RM125.6 million for Sabah in the previous allocation.
Notably, the last review of the grants for Sabah and Sarawak was conducted in 1968 and 2022, respectively. In addition, Anwar revealed that the Inland Revenue Board of Malaysia (Amendment) Bill 2023 was passed through a majority voice vote in the Dewan Rakyat, which allows for the appointment of a representative of the Sabah state government, known as the Chief Minister of Sabah, and a representative of the Sarawak state government, known as the Premier of Sarawak. This aligns with the recommendations of the Inter-Government Committee (IGC) 1963.
Furthermore, Anwar emphasized that the federal government had reached an agreement with the Sabah government on the transfer of regulatory authority over electricity supply, which will take effect on January 3, 2024. “Although regulatory power is transferred to the Sabah government, the federal government will continue to support the state government in strengthening the electricity industry in Sabah by providing subsidies to Sabah Electricity Sdn Bhd (SESB) until the SESB Transformation Plan is successfully implemented by 2030,” he stated.
In an effort to ensure electricity supply stability and reduce disruptions, particularly in eastern Sabah, the Prime Minister announced that the federal government will support the implementation of hybrid solar power generation and the construction of an electricity transmission network in southern Sabah. The federal government is also in negotiations to hand over Bintulu Port and the operation of Rural Air Services (RAS) to the state government,” he added, underscoring the government’s dedication to fulfilling the commitments laid out in the Malaysia Agreement 1963.
