KUALA LUMPUR: The MADANI Government has achieved significant progress in addressing numerous issues related to the Malaysia Agreement 1963 concerning Sabah.
Prime Minister Datuk Seri Anwar Ibrahim confirmed that thirteen claims have been successfully resolved through the Malaysia Agreement 1963 Implementation Action Council Technical Committee.
This committee operates under the chairmanship of Deputy Prime Minister Datuk Seri Fadillah Yusof.
Key agreements between the Federal Government and Sabah Government include the transfer of regulatory authority over electricity supply and Sabah Electricity Sdn Bhd to Sabah.
The Federal Government has committed to continuing its allocation of 1.2 billion ringgit to ensure uninterrupted electricity supply within the state.
Anwar delivered these updates during a briefing session on the MADANI Government’s position regarding the Federal Special Grant to Sabah in the Dewan Rakyat.
Anwar said the MADANI Government has also recognised the Sabah Public Works Department, Department of Irrigation and Drainage, and the Sabah Water Department as Technical Departments under Treasury Instruction 182.
He said the Federal Government has also delegated the authority to approve Federal projects worth up to RM50 million to these technical departments in Sabah.
In addition, Anwar, who is also Finance Minister, said that matters resolved include amendments to the Inland Revenue Board of Malaysia Act 1995 (Act 533) to appoint representatives from the Sabah and Sarawak governments as permanent members of the Inland Revenue Board (IRB).
He said the Federal Government also supports the growth of the oil and gas sector in Sabah to ensure that its people benefit from it, noting that a Commercial Collaboration Agreement (CCA) was signed with the Sabah government in December 2021.
“Through the CCA, the government aims to enhance the participation of Sabahans in the state’s oil and gas industry,” he said.
“With the support of the MADANI government, the collaboration has yielded results, with Sabah-based oil and gas contractors securing projects worth RM2 billion in 2024,” he said.
Anwar also said the Federal Government has agreed to allow Sabah to impose a sales tax on petroleum products to generate additional state revenue estimated at around RM2 billion annually.
The prime minister also stressed that the MADANI Government remains committed to resolving all outstanding Malaysia Agreement 1963 (MA63) matters that have persisted for decades, increasing the special grant rate for Sabah, and raising annual operating and development allocations for the state’s well-being.
“This commitment is ongoing to ensure that all Federal Government obligations to Sabah under the Federal Constitution are fulfilled, while also improving the special grant in line with the state’s service needs and the Federal Government’s fiscal capacity.
“This is the resolve of the MADANI Government, just as we have promised,” he said. – Bernama
