Kuala Lumpur: The Federal Government will continue implementing matters under the Malaysia Agreement 1963 (MA63) in accordance with the Federal Constitution and existing legal frameworks.
Minister in the Prime Minister’s Department (Sabah and Sarawak) Datuk Mustapha Sakmud said issues raised by Members of Parliament during the debate, particularly those concerning Sabah and Sarawak, generally focused on the role of the Minister in the Prime Minister’s Department (Sabah and Sarawak) and the status of MA63 implementation.
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“The Madani Government remains engaged in ongoing discussions with the Sabah and Sarawak governments to address outstanding MA63-related matters within constitutional and legal parameters,” he said, when delivering the winding-up speech in the Dewan Rakyat on Tuesday.
On special grants under Articles 112C and 112D of the Federal Constitution, Mustapha said negotiations between the Federal Government and the Sabah State Government were held on Nov 17, 2025 and Jan 28, 2026, and remain ongoing, involving the Finance Ministry and the Prime Minister’s Department.
He emphasised that healthcare and education matters raised by the Sabah and Sarawak governments are being examined through joint working committees established by the Health Ministry and the Education Ministry.
To a query from the Tuaran Member of Parliament on Sabah’s entitlement to 40 per cent of federal revenue, Mustapha said the Federal Government is not appealing against Sabah’s entitlement, adding that the appeal relates to technical aspects of the High Court’s grounds of judgment.
Negotiations between the Federal Government and the Sabah State Government, he said, are continuing. Mustapha also informed the House that he was appointed Technical Committee Deputy Chairman under the Malaysia Agreement 1963 Implementation Action Council (MTP MA63) on Saturday (Feb 6).
As of now, 13 of the 29 MA63-related matters have been resolved, with nine finalised under the current administration and four under previous governments, while the remaining matters are at various stages of discussion.
“A public dashboard on the status of MA63 implementation is available on the Prime Minister’s Department’s official portal,” he said.
On projects in Sabah, Mustapha said expenditure performance under the Fifth Rolling Plan of the 12th Malaysia Plan for 2025 stood at 99.52 per cent as of Jan 26, 2026.
He said project delays were generally linked to land administration issues, utility relocation and approval processes for changes in work scope, which require continued coordination between federal and state agencies.
In closing, Mustapha said the implementation of MA63 forms part of the government’s constitutional responsibilities, aimed at maintaining balanced relations between the Federal Government, Sabah and Sarawak.
