Anwar grants Sabah and Sarawak RM50 million project authority
KOTA KINABALU: The decision to grant Sabah and Sarawak authority over federal projects valued at RM50 million and below demonstrates the Prime Minister’s firm commitment to the Malaysia Agreement 1963 (MA63).
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali stated this reflects Datuk Seri Anwar Ibrahim’s resolve to realise the MA63 spirit.
Armizan, who previously headed the MA63 Secretariat, said a December 2022 Cabinet Note outlined outstanding MA63 issues including devolution of power.
He revealed the Finance Ministry, led by Anwar, initially proposed devolving authority for projects valued at RM30 million and below.
“I personally proposed that the ceiling be raised to RM50 million,” Armizan said in a video shared on his Facebook page.
He explained the RM30 million limit matched the value of projects already under Federal Treasury Offices in Sabah and Sarawak.
The Cabinet meeting on January 4, 2023 approved the Finance Ministry’s recommendation to formally recognise Sabah and Sarawak technical departments.
This recognition places Sabah and Sarawak Public Works Departments under Treasury Directive 182.
They can now conduct full project implementation including procurement for federal projects valued at RM50 million and below.
“No previous prime minister or federal government had been willing to cede project-implementation powers to the states,” Armizan stated.
He highlighted Anwar approved and implemented the recommendation within one month of taking office.
