Kota Kinabalu: Implementation of the Malaysia Agreement 1963 (MA63) continues to be a priority under the Madani Government, said Attorney General of Malaysia Tan Sri Mohd Dusuki Mokhtar.
He outlined various aspects related to MA63, including constitutional principles, federal-state negotiations, legal reforms, sovereignty matters and the future challenges faced by Sabah and Sarawak.
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Speaking at the opening of the Legal Year, Mohd Dusuki said Malaysia’s journey since independence and the formation of the Federation had been marked by challenges, but anchored by parliamentary democracy, constitutional monarchy and federalism.
He said the Federal Constitution envisages a balance between national uniformity and local autonomy, stressing that both the Federal Government and the States must act within their respective constitutional authority to avoid encroachment on rights and sovereignty.
On MA63, Mohd Dusuki said its implementation continues to be among the top agenda items with the Prime Minister having assured that unresolved matters would continue to be refined.
He said MA63 implementation is carried out mainly through the Malaysia Agreement 1963 Implementation Action Council (MTPMA63), chaired by the Prime Minister and attended by federal leaders, the Premier of Sarawak, the Chief Minister of Sabah, ministers from the Federation and the Borneo States, the Attorney General and the Treasury Secretary-General.
He said negotiations are also conducted through the Technical Committee under MTPMA63 which brings together ministers and senior officials from both federal and state governments.
Mohd Dusuki said these platforms, guide policy decisions based on the Federal Constitution, MA63, the Inter-Governmental Committee Report 1962 and other applicable laws.
He further said the Attorney General’s Chambers (AGC), as principal legal adviser under Article 145 of the Federal Constitution, bears responsibility for scrutinising all proposals carefully, with due regard to the rights of the Federal Government and the Borneo States.
He added that AGC is facilitating negotiations following the Kota Kinabalu High Court decision which pursuant to Article 112D of the Federal Constitution, with both governments progressing towards a mutually acceptable agreement.
On law reform benefiting Sabah and Sarawak, he said amendments to Articles 1(2) and 160(2) of the Federal Constitution through the Constitution (Amendment) Act 2022 restored, with modifications, the original position of Sabah and Sarawak as constituent States at the formation of Malaysia.
He said regulatory authority over gas distribution and electricity supply was transferred to Sabah through Article 95C of the Federal Constitution in 2023 and 2024.
Mohd Dusuki also cited the Labour Ordinance of Sabah (Amendment) Act 2025 and the Labour Ordinance of Sarawak (Amendment) Act 2025, which came into force on May 1, 2025, enhancing the Minister’s authority to formulate rules suited to each State’s needs, subject to State concurrence.
Mohd Dusuki said AGC continues to revise pre-1969 laws under the Revision of Laws Act 1968, noting that 295 such federal laws have been revised to date, including laws applicable to Sabah and Sarawak such as the Preservation of Public Security Acts and the Auctioneers Ordinance (Sabah).
He said matters resolved at negotiation stage and currently under federal review include proposals to increase parliamentary seats for Sabah and Sarawak, and the empowerment of State authority over scheduled waste management presently regulated under the Environmental Quality Act 1974.
On sovereignty issues, Mohd Dusuki said Malaysia has achieved significant victories in its fight against the baseless claims made by the purported heirs and successors-in-interest to the “Sultan of Sulu” in various jurisdictions.
“Since 2019, we have commenced our battle against these claims, in not just Malaysia, but also Spain, France, the Netherlands and Luxembourg. It has been proven to be a daunting and challenging journey for us but we managed to succeed as we have always held on to our unwavering faith in the respective justice systems.
“In Spain, for example, in Oct 8, 2025, we secured a landmark conviction against the rouge arbitrator, Dr Gonzalo Stampa, for his utter disregard to the orders of the Spanish courts. Dr Stampa received six months’ jail and one year prohibition from acting as an arbitrator.
“Most recently, in France, on Dec 9, 2025, the French Court of Appeal annulled the Final Award issued by Dr Stampa on Feb 28, 2022 as the Court found there was no valid arbitration agreement binding Malaysia. As a result, the Final Award was annulled in its entirety,” he said.
Mohd Dasuki also stressed that the AGC will continue its commitment to defend Malaysia’s sovereignty, immunity and national interests against any baseless claims by any individuals or entities.
Looking ahead, Mohd Dusuki said negotiations continue on issues including the appointment of Judicial Commissioners in Sabah and Sarawak, the administration of education and health, and ongoing efforts towards Borneonisation, with AGC committed to providing legal advice that honours the spirit and intent of MA63.
