Abang Jo calls for flexible special grant based on revenue

He said the proposed formula would tie the grant to Sarawak’s total income, particularly tax revenue, with a flexible mechanism that reflects the state’s current financial performance.

“We will propose, for example, that 20% of Sarawak’s revenue be returned to the state. If revenue is high, the amount returned will be higher; if revenue is low, the amount will be lower. We have made the figure flexible to facilitate consideration of the mechanism by the federal government.

“The allocations given at present are insufficient. However, as Sarawak now has its own revenue base, we are not 100% dependent on others,” Bernama reported him as saying in Kuching today.

Abang Johari said a revenue-based approach would be fairer, as the state government is currently bearing the bulk of development costs using its own financial resources.

On Wednesday, the finance ministry said Putrajaya would hold negotiations with the Sarawak government this year to review the special grant and come up with a new formula.

The ministry said the negotiations would take into account the state’s needs, as well as the federal government’s financial position, in line with the constitutional provision that the special grants for Sarawak and Sabah be reviewed every five years.