KOTA KINABALU – The RM16 billion allocation for Sabah should not be conflated with the state’s fight for its 40% revenue entitlement under the Malaysia Agreement 1963 (MA63), said Sabah Law Society’s (SLS) former president.
Datuk Roger Chin said the allocation mentioned by Prime Minister Datuk Seri Anwar Ibrahim should not be a substitute for the special grant as it is a separate financial arrangement with different implications.
“Conflating the two (allocation and special grant) not only confuses the public but detracts from the legitimate demand for financial justice and adherence to the MA63.
“While an increase in allocation to Sabah appeared generous, a closer examination reveals that this allocation does not adequately address the fundamental issue of Sabah’s 40% net revenue entitlement under the MA63,” he told Scoop.
Yesterday, Anwar urged politicians in Sabah to stop criticising and denying the federal government’s efforts to restore Sabah’s rights as outlined in the MA63 and the Federal Constitution.
Anwar said the total allocation allotted for Sabah this year, amounting to RM16 billion, is more than the 40% revenue entitlement.
This was the first time the prime minister spoke about the 40% revenue entitlement since Putrajaya appealed the high court’s decision to grant leave for a judicial review filed by SLS on the matter.
Chin said the RM16 billion allocation is earmarked for specific operational expenditures in Sabah.
“This means that the funds are designated for various programmes and projects, with the unutilised money rolling over to the next fiscal year.
“Consequently, these funds do not flow directly into the state’s coffers, where the Sabah government could exercise autonomy over their use.
“Instead, they are tightly controlled and subject to federal oversight, limiting Sabah’s ability to address its needs and priorities independently.”
On the other hand, the 40% entitlement is a special grant, which is derived from state revenue that the state government can use at its 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 honouring this entitlement, the federal government undermines Sabah’s financial independence and its ability to address local challenges effectively.”
China added that Anwar’s remarks about ending parochial and narrow-minded sentiments related to state rights could be perceived as trivialising the concerns of Sabahans regarding financial entitlements and self-governance.
Additionally, Putrajaya must engage in genuine dialogue with Sabah leaders and civil society to address the state’s unique challenges and aspirations, he said.
“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 in the federation.” – June 1, 2024