KOTA KINABALU: Sabah does not wish to continue receiving interim payments and insists on resolving the issue of the 40% net revenue special grant, says Datuk Seri Dr Jeffrey Kitingan.
The Deputy Chief Minister I said that while the recent RM600mil interim payment announced by Prime Minister Datuk Seri Anwar Ibrahim for Sabah was the largest the state has received to date, Sabah does not want to rely on interim payments indefinitely.
“We will continue to push for a resolution on the 40% special grant because it is our right and enshrined in our Constitution. This was a fundamental condition for forming Malaysia,” he told a press conference yesterday.
Kitingan expressed optimism that the Madani government will address and resolve the matter.
“While the RM600mil is a significant increase compared with previous payments, indicating growth in the interim payment, we do not want to depend on it indefinitely. We want a final resolution,” he added.
Kitingan was part of the discussion panels during the Malaysia Agreement 1963 (MA63) implementation action council meeting on Sept 12 in Kota Kinabalu.
During the meeting, Anwar announced that the interim payment would be raised from RM300mil to RM600mil starting next year.
Kitingan said while all other MA63-related issues were discussed, the 40% grant issue was not.
He attempted to bring it up but was advised to be patient.
In a written reply published on the Parliament website on Sept 4, Deputy Prime Minister Datuk Seri Fadillah Yusof said that a total of nine demands concerning MA63 have been fully resolved to date.
Among the matters settled were the handover of administrative authority over Pulau Sipadan and Pulau Ligitan to the Sabah government; amendments to the Federal Constitution Articles 1(2) and 160(2); as well as granting authority over licensing and deep-sea fishing to the Sabah and Sarawak governments.
Also fully resolved was the recognition of the Public Works Department and the Irrigation and Drainage Department of the states of Sabah and Sarawak as technical departments under Treasury Directive 182 (AP182); and the amendment of the Inland Revenue Board (LHDN) Act 1995 to appoint representatives of the state governments of Sabah and Sarawak as permanent members of the board.
According to Fadillah, the timeframe for resolving each matter or demand concerning MA63 was subject to the legislative process involved as the issues discussed involved complex legislation requiring detailed examination.
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.
