KOTA KINABALU: The federal government is considering a new revenue-sharing formula for Sarawak modelled on the spirit of Sabah’s constitutional entitlement, Prime Minister Datuk Seri Anwar Ibrahim announced on Friday (Sept 10).
Speaking after chairing the Malaysia Agreement 1963 (MA63) Technical Committee meeting at the Sabah International Convention Centre, Anwar noted that while Sarawak lacks a specific constitutional provision like Sabah’s Article 112D, it deserves an equivalent framework.
"I will continue discussions with the Sarawak Premier in the coming days. Hopefully, by Malaysia Day on September 16, I can announce an interim step for Sarawak in Kuching," Anwar told reporters at a joint press conference alongside Sabah Chief Minister Datuk Seri Hajiji Noor and Sarawak Premier Tan Sri Abang Johari Openg.
Anwar said Sarawak has proposed a formula that accounts for national financial capacity while setting reasonable minimum and maximum thresholds. The Finance Ministry and Sarawak’s Treasury have been instructed to finalise the details.
Abang Johari welcomed the move as a pragmatic solution, describing it as a win-win for both the state and the federation.
"If our country is strong, the federation is strong," Abang Johari said. "We accept the reality that national financial stability must be maintained. MA63 is a national matter, and we want to align the Constitution with the integrity of a united Malaysia."
Addressing Sabah's demand for its 40% net revenue entitlement, Anwar revealed that the federal government has agreed to boost Sabah's interim grant to RM1.5bil starting this year while long-term negotiations continue.
"Negotiations will proceed taking into account our financial position as envisioned in the original agreement," Anwar said. "We will table this in the upcoming parliamentary budget in October and disburse the RM1.5 billion by late October or early November."
Hajiji expressed hope that the long-standing 40% revenue payment issue would be resolved swiftly now that it is receiving dedicated federal attention.
Anwar urged all Malaysians to view MA63 commitments not as "special treatment" for East Malaysia, but as a core national priority rooted in the country's founding promises.
"MA63 must become a national narrative, otherwise it remains regional—requiring special yearly talks," Anwar emphasised. "Friends in Peninsular Malaysia must understand that fulfilling commitments to Sabah and Sarawak strengthens the nation as a whole."
Additionally, the committee agreed to expedite the appointment of local Sabahans and Sarawakians to head key federal departments in their respective states, fulfilling a key recommendation from the historic Cobbold Commission report.
