‘40pc must be given as a special grant’
Published on: Sunday, June 02, 2024
By: FMT Reporters
Roger said it was crucial to distinguish between federal allocations and special grants.
PETALING JAYA: The Federal Government must honour its commitments under the Malaysia Agreement 1963 (MA63) and ensure that Sabah receives its full 40pc net revenue entitlement as a special grant, former Sabah Law Society (SLS) President Roger Chin said.
He said this grant should be free from federal oversight, allowing Sabah to exercise its financial autonomy fully.
ADVERTISEMENT
Additionally, he said, the Government must engage in genuine dialogue with Sabah’s leaders and civil society to address the State’s unique challenges and aspirations.
“While the increased federal allocation to Sabah may seem like a positive development, it falls short of addressing the fundamental issue of financial autonomy and fair revenue sharing,” Chin said in a statement.
“The people of Sabah deserve transparency, respect for historical agreements and genuine financial empowerment. Anything less is an affront to their intelligence and their rightful place within the Malaysian federation.”
He was responding to a statement by Prime Minister Datuk Seri Anwar Ibrahim that the RM16 billion federal allocation for Sabah this year was “far more than the promised 40pc” entitlement under MA63.
ADVERTISEMENT
Speaking in Penampang on Friday, Anwar said the Government was doing its best to resolve MA63 issues.
“We have done more in one year than (previous governments) have done over the past 10 years,” he said.
ADVERTISEMENT
Chin said Anwar’s statement raised significant concerns about the Federal Government’s approach to Sabah’s financial entitlements and governance.
“While the Prime Minister’s announcement of an increased allocation compared to previous years may appear generous on the surface, a closer examination reveals that this allocation does not adequately address the fundamental issue of Sabah’s 40pc net revenue entitlement under MA63,” he said.
“Instead, it seems to obfuscate the real financial needs and rights of the State, thereby insulting the intelligence of the people of Sabah.”
He said it was crucial to distinguish between federal allocations and special grants.
The RM16 billion allocation mentioned by Anwar, he said, was earmarked for specific operational expenditures within Sabah. This meant that the funds were designated for various programmes and projects, with the unutilised balance rolled over to the next fiscal year.
“Consequently, these funds do not flow directly into the state’s coffers, where Sabah’s Government could exercise autonomy over their use. Instead, they are tightly controlled and subject to federal oversight, limiting Sabah’s ability to address its unique needs and priorities independently,” he said.
“In contrast, the 40pc net revenue entitlement under MA63 is a special grant that should be directly transferred to the State Government. This grant represents a share of the revenue generated within the state and is intended to be used at the State’s discretion.
“It is a fundamental component of Sabah’s financial autonomy and self-determination, enabling the State to invest in its infrastructure, public services, and development initiatives as it sees fit.
“By not fully honouring this entitlement, the Federal Government undermines Sabah’s financial independence and its ability to address local challenges effectively.”
Chin also said Anwar’s remarks about ending “parochial and narrow-minded sentiments” related to state rights were particularly troubling.
Such statements, he said, trivialised the genuine concerns of Sabahans regarding their financial entitlements and self-governance.
“The sentiment for greater autonomy and fair revenue sharing is not parochial; it is a fundamental aspect of the federal relationship outlined in MA63. Dismissing these concerns as mere noise undermines the legitimacy of Sabah’s aspirations and the historical agreements that form the basis of Malaysia’s federation,” he said.
Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
.jpg)
.jpg)
