Greater transparency called for in federal-Sarawak revenue discussions

SIBU: Sarawak United People’s Party (SUPP) Youth Chief has called for greater transparency and honesty in financial discussions between the federal government and Sarawak, saying public confidence in the Malaysia Agreement 1963 (MA63) process depends on an accurate presentation of the facts.

Councillor Kevin Lau Kor Jie said he supported Premier Tan Sri Abang Johari Tun Openg’s recent call for the federal government, particularly the Ministry of Finance, to be more transparent in recognising Sarawak’s contribution to the national economy.

His remarks followed Abang Johari’s statement that Sarawak’s revenue had exceeded the total federal allocations channelled to the state between 2022 and 2025.

The Premier subsequently expressed hope that Budget 2027 would translate matters discussed under MA63 into increased financial injections for Sarawak.

Lau said the figures discussed at the MA63 Implementation Action Council should be presented in their full context, rather than in a way that could lead the public to conclude that federal expenditure in Sarawak simply outweighed the revenue generated by the state.

“Sarawak has consistently been one of Malaysia’s major contributors, particularly through the oil and gas industry, in addition to other federal taxes, duties and revenue collected in Sarawak,” he said in a statement on Thursday (Sept. 24).

Lau, who is also SUPP Bawang Assan Branch chairman, said Sarawak had also been using its own financial resources to accelerate critical infrastructure projects where delays in federal funding could affect the delivery of essential services.

Among the areas cited were water treatment plants and water supply upgrading projects, while the Sarawak Cancer Centre was another example, he said, adding that Sarawak is stepping forward to support some major federal projects.

Lau’s call comes amid continuing negotiations between Putrajaya and Sarawak over financial matters under MA63.

At the MA63 Implementation Action Council meeting in Kota Kinabalu on Sept. 11, Prime Minister Datuk Seri Anwar Ibrahim said the federal government and Sarawak Government would work on a formula relating to payments associated with Sarawak’s claims, taking into account the country’s financial position and the federal government’s fiscal capacity.

Anwar had also said the federal government was considering a revenue-sharing approach for Sarawak based on the spirit of Sabah’s constitutional entitlement, although Sarawak does not have an identical constitutional provision under Article 112D.

Lau said the upcoming Budget 2027 therefore represented an important opportunity for Putrajaya to strengthen development allocations for Sarawak, particularly in areas where infrastructure gaps remained a concern.

He called for greater federal allocations for critical infrastructure, including the repair and upgrading of ageing schools, healthcare facilities and essential water infrastructure.

The Ministry of Finance has already undertaken Budget 2027 engagement in Sarawak, including a Sept. 17 visit to the redevelopment project for the dilapidated SK Serumbu in Bau and discussions with the Sarawak Government on proposed Budget 2027 initiatives.

“For the federal and state governments to work effectively together, trust must be the foundation of the relationship.

“Trust can only be built through transparency, honesty and openness – not through concealment of facts or narratives that do not give the full picture,” Lau said.

He stressed that Sarawak was not seeking preferential treatment, but fairness, transparency and what he described as an honest partnership consistent with the spirit of MA63.

“When there is transparency, there can be trust. And when there is trust, the federal and Sarawak governments can work together more effectively for the benefit of all Malaysians,” he said.