Anwar agrees Sarawak deserves fair share, promises formula clarity, interim measure by Malaysia Day

Kota Kinabalu, Sept 11 — Prime Minister Anwar Ibrahim pledged to work on a formula for Sarawak to receive a fair portion of the state's revenue as he prepares to meet with Sarawak Premier Tan Sri Abang Johari Openg. Sarawak had proposed a formula that would provide greater clarity on the matter, taking into consideration the federal government's financial position and capacity, Anwar stated.

"I concur with this, and have instructed the federal and Sarawak finance ministries to discuss the implementation of such a formula," he told reporters after convening a meeting of the Malaysia Agreement 1963 (MA63) implementation committee. Anwar intends to continue talks with Abang Johari over the coming days and aims to announce an interim measure for Sarawak around Malaysia Day celebrations on September 16.

The federal government has been in talks with Sabah regarding its obligation to pay the latter 40% of its state-derived revenue, a debt it has been defaulting on since 1974. In May, Anwar announced a RM1.5 billion interim special grant for Sabah as both Putrajaya and the Sabah government work on the implementation mechanism and the final sum.

Anwar stressed that the same principle of revenue return should apply to Sarawak, even though its financial arrangement lacks a constitutional provision like Sabah's. Abang Johari welcomed the proposed formula, calling it a potential "win-win" arrangement between Sarawak and the federal government. He emphasized that any arrangement must also consider the country's financial stability.

"If our country is doing well, naturally we will do well. If it is not doing well, we must also accept the reality so that the country's financial stability can be maintained," he stated.