Awaiting correct MA63 prescription
Published on: Sunday, December 24, 2023
By: Datuk Dr Johan Arriffin
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Politicians use it as their mantra, weave MA63 in all their speeches, and repeat MA63 year in and year out like a broken record.
Sixty years has passed, and we are still talking about this international agreement which has yet to be fulfilled to everyone’s satisfaction. People asked how many more years we should wait.
MA63 has never been a priority
Federal government leaders’ poor understanding of the Malaysia Agreement 1963 is one of the contributing factors in fulfilling Sabah’s demand according to United Sabah National Organisation (USNO) president Pandikar Amin Mulia.
Former federal law minister Wan Junaidi has observed the same, there is a general lack of awareness of the MA63 among many civil servants. He says many of them view the agreement as ‘a mere state sentiment’ when it should be regarded as ‘a national agenda’.
From 1963 to 2016, it seems that the rights of Sabah and Sarawak have been sidelined,” he said in an interview.
I might add, MA63 is not and has never been a priority despite being an international agreement. Most Malaysians in Peninsular Malaysia don’t really care about MA63 except for East Malaysians, who are supposed to be partners of Malaysia. Only in 2009, 46 years later, Malaysia Day was declared a public holiday. Until today Malaysia day is a muted affair, minus the fanfare of Merdeka Day.
In the case of Malayans, for all sense and purpose, Merdeka 57 is the birth of the nation Malaysia. To put it bluntly, we are still under Malayan control and domain. One time there was fear to talk about MA63 in public.
In February 2018, just before GE14, Najib said the government of today was more honest and sincere on many issues, contrary to the situation at one time when people could be arrested under the now-repealed Internal Security Act (ISA) for speaking on matters pertaining to MA63.
In the recent cabinet reshuffle, there is no longer a portfolio of Minister of Sabah and Sarawak Affairs. It falls under Deputy Prime Minister and Minister of Energy Transition and Public Utilities Fadillah Yusof, who is also in charge of Sabah, Sarawak Affairs.
Could it mean that Sabah, Sarawak Affairs is now relegated to a sub-ministry level and receiving less attention than before? This is not a good situation for Sabah and Sarawak as we still need a full ministry to focus on MA63 issues and beyond. As partners of Malaysia, we certainly deserve better.
MA63 issues like the 40% revenue sharing, 35pc distribution of the parliamentary seats in Sabah and Sarawak and autonomy over health and education are among a long list of issues left on the table, and yet to be resolved.
The feeling of being marginalised
In his Malaysia Day speech in September, Anwar Ibrahim said there will be no more discussions, further debate, or interpretation - only implementation.
Ironically, the 40pc tax is in limbo over debate and interpretation. Many politicians, members of the legal fraternity and academics are still debating what is already in the constitution. If the constitution is supreme and not parliament, Sabah should get a huge share of tax collected. Now we subject to parliamentary swings and stuck on a ‘formula’.
Anwar has expressed his determination to ensure that the people of Sabah and Sarawak do not feel marginalised by their counterparts in Peninsular Malaysia. He stressed the government’s commitment to a new generation that seeks to fulfil and uphold all promises made, following the path set by the nation’s founding fathers 60 years ago.
Sabahans are used to nice speeches and come out in droves to welcome the Agung and our Prime Minster with open hearts. While we welcome more assurances on the fulfillment on MA63, the people of Sabah has heard the same promises over the last three governments. Now Anwar, with the fourth government since 2018 is promising the same. It’s like offering your own family nasi ‘basi’ (spoilt rice).
The MA63 fatigue has set in and there is a sense of despair, whatever that has been promised has gone to the dogs.
We have not forgotten Anwar was part of the 2018 PH government which promised to fulfill the MA63 promises and give Sabah and Sarawak 20pc oil royalty. We are still receiving the same 5pc oil royalty, and thanks to our big brother Sarawak legal action against Petronas, we are now enjoying the 5pc sales petroleum tax which has added billions to our coffers. Sarawak has taken the lead on MA63 issues and Sabah just seems satisfied by playing hitchhiker.
Sabah on the other hand seems to prefer to negotiate rather than litigate over crucial matters like the 40pc tax and the continental shelf dispute. Some people have criticised our leaders for being timid and obligated to the central government. Sarawak’s stance has always been ‘‘we agree to disagree’’ and litigate when necessary. In Sarawak, litigation over the Petroleum Sales Tax has proven to be stronger than mere political talk.
The 40pc tax and the Continental Shelf dispute has been filed in court by Sabah Law Society (SLS) and Sabah Action Body Advocating Rights (Sabar), and not by the state government.
Walking back on the 40% tax challenge
The mother of all claims is the 40% tax revenue sharing which is embedded in the constitution. Despite being in the constitution, there is a raging debate on the interim claims of RM300 million, an amount pending the finalization of an agreed formula by mid-2024.
Sabah Law society (SLS) has taken the matter to court on behalf of the people of Sabah. The case has been postponed to next year and at this juncture, it is not clear whether the state is still a party to the suit or supports SLS legal suit.
The state may prefer to work the corridors of Putrajaya and listen to more political promises. In July, United Progressive Kinabalu Organisation (Upko) president and Entrepreneurs Development and Cooperatives Minister Ewon Benedick told reporters, Sabah Pakatan Harapan (PH) will proceed with legal action over the 40% entitlement of state revenue.
In September PH changed its mind and withdrew the legal action. The withdrawal of the legal action brought much criticism from all quarters. Some accused PH of selling out on Sabah.
Latest, Ewon said as a member of the Malaysia 1963 Agreement Resolution Action Council (MTPMA63) and the MTPMA63 Technical Committee, he will propose a framework for the renegotiation of the 40pcfederal revenue payment to both the Federal and Sabah Governments.
The proposed framework takes into account technical issues related to the availability of data concerning the collection of federal revenue in Sabah since 1974 and aims to provide a more practical way forward.
Federal owes us billions
Jeffrey Kitingan, the Sabah Star president said his gut feelings tell him that “they” would not be able to pay what was owed to Sabah and that reasons such as “financial situation” and “the needs of the state” would be used as an excuse or factors for consideration.
He added that it was also why there are representatives from Sabah and Sarawak in the Inland Revenue Board now, to know how much was being earned from both these states. “Hopefully, they don’t hide from us,” Jeffrey said, adding from a simple calculation he made on just a few of the revenues earned from Sabah, such as the income tax, Petronas and Customs duties, the 40pc is about RM16bil, and not in the millions.
MA63 remains an empty promise
Even for the initiated on MA63, it’s hard to follow the arguments as to what falls under MA63 and what does not. For example, why are we asking for education autonomy when point No.15 of the 20 points safeguards clearly states that “the existing educational system of North Borneo should be maintained and for this reason it should be under state control”.
If anyone says that the 20 Points has no legal standing, this is what Maximus Ongkili, the former Minister in the Prime Minister’s Department (Sabah and Sarawak Affairs) said in parliament on December 2021 after the passing of Article 1 (2):
“With the treasured amendments, all pre-constitutional documents such as the Malaysia Agreement, Inter-Governmental Committee (IGC) Report, Cobbold Commission, and even the 20 points and 18 points can now be directly cited as legal and constitutional because these were all appendices of the Malaysia Act and the MA63”.
The 20 points is known as the basis of MA63 demands by many people, but then there was the 21 points negotiated by the Sabah and Sarawak Chief Ministers under the PH 2018 government. The constitutional amendments under Article 1 (2) has not brought the results desired. Sabah and Sarawak situation has best be said status quo in respects to key demands like the bigger sharing of revenue among partners and oil royalties.
People’s anger and secessionist calls
In his March 1999 speech Harris Salleh said, “In the past, the issue has focused on the more emotional aspects of the erosion of rights granted under the 20 Point agreement. I wish to refocus the debate on more relevant rights, in particular the Federal Government’s constitutional duty to share revenue collected from Sabah and its responsibility to develop Sabah socially and economically.”
In September, Harris said current sentiments and grievances within Sabah suggest that if a referendum were held today, it is possible that a substantial majority of Sabahans, potentially exceeding 80 per cent, will opt for secession from the Federation.
He said the accumulation of dissatisfaction and the perception of unequal representation have evidently fueled this inclination. If Harris gut feeling is correct, the peoples dissatisfaction will continue to grow over the inadequacies of MA63 and will be a cannon fodder for the opposition in the next state elections due in 2025.
- The views expressed here are the views of the writer Datuk Dr Johan Arriffin and do not necessarily reflect those of the Daily Express.
- If you have something to share, write to us at: [email protected]
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