PETALING JAYA: The Federal Government remains committed to fulfilling all its obligations to Sabah in line with the Federal Constitution, with significant progress made under the Madani administration in resolving long-standing issues related to the Malaysia Agreement 1963 (MA63), says Datuk Seri Anwar Ibrahim (pic).
The Prime Minister said the Madani Government has made positive progress in resolving many issues related to MA63 with 13 claims settled, under the Technical Committee under MA63 Implementation Action Council (MTPMA63) chaired by the Deputy Prime Minister II.
"The government has made every effort to resolve all outstanding MA63 claims, increase the special grant rate for Sabah, and boost annual allocations for operating and development expenditures to enhance the well-being of the state.
"This commitment will continue to ensure that all Federal Government obligations to Sabah under the Federal Constitution are fulfilled, while further improving the special grant in line with the Sabah Government’s service needs and the Federal Government’s fiscal capacity.
"This is the aspiration of the Madani Government, and like its other promises, it will be realised," Anwar said during the ministerial briefing on the special grant for Sabah in the Dewan Rakyat today (Oct 22).
Among the matters jointly agreed upon by the Federal and Sabah Governments were the transfer of regulatory authority over electricity and Sabah Electricity Sdn Bhd (SESB) to the Sabah Government.
"Nevertheless, the federal government continues to allocate RM1.2bil to ensure the continuity of electricity supply in the state," said Anwar, who is also the Finance Minister.
The Madani government has also recognised the Sabah Public Works Department (JKR), the Department of Irrigation and Drainage (JPS), and the Sabah Water Department (JBA) as Technical Departments under Treasury Instruction 182, he said.
In addition, he said the approval authority for Federal projects in Sabah has been delegated to these technical departments for projects worth up to RM50mil.
An amendment to the Inland Revenue Board of Malaysia Act 1995 to appoint representatives from the Sabah and Sarawak Governments as permanent members of the Inland Revenue Board (LHDN) was also part of the joint agreement, said Anwar.
The briefing comes in the wake of the Kota Kinabalu High Court's ruling on Friday that the federal government acted illegally and exceeded its authority under the Federal Constitution by failing to honour Sabah's 40% revenue entitlement for decades.
The Court ordered Putrajaya to conduct a joint review with the Sabah government on the matter.
This review must reach an agreement on Sabah's right to 40% of federal revenue collected from the state for every financial year from 1974 to 2021.
The review must start within 90 days and be completed within 180 days.
