Make state funding fair by law, says Sarawak deputy minister

Sharifah Hasidah Sayeed Aman Ghazali says the country needs proper laws to ensure fair treatment for states despite changes in government.

Sharifah Hasidah, the deputy minister in the Sarawak premier’s department, said federal-state ties must not be left to changing political circumstances.

She said political parties would come and go, but the system must remain fair to all states.

“There must be some laws in regards to this. There must be some review of the Federal Constitution, a review of how we manage federal and state relations,” she told a press conference at Penang Institute here today.

Sharifah Hasidah was responding to a question on whether safeguards were needed so that states would continue to receive fair funding and project approvals even in the event of a change in government.

She said federal-state ties must be based on trust and guided by the Federal Constitution and the law. “If the state is strong, Malaysia will be strong. If the state is rich, Malaysia will be rich,” she said.

Penang chief minister Chow Kon Yeow said many states felt the grants they received from the federal government were not enough, decribing them as “quite limited in scope”.

Chow said Putrajaya should share more revenue with states, as many have had to borrow from the federal government to fund essential projects for areas such as housing, flood mitigation, and water supply.

He said Penang had experienced different phases, first as an opposition-held state after 2008 and now as a state aligned with the federal government, which had led to more project approvals, including some that were previously rejected.

“Sometimes, political considerations may play a role. We cannot say it does not happen. Sometimes it happens,” he said.

Perlis executive councillor Wan Zikri Afthar Ishak said smaller states also needed a fairer system, as some states were easily overlooked because of their size and fewer number of parliamentary seats.

Wan Zikri said Perlis received little direct benefit despite Kuala Perlis serving as a key gateway for travellers to Langkawi. He noted that cross-border trade depended heavily on the state’s infrastructure, particularly roads used daily by lorries, trailers, and logistics operators.

The remarks were made at a press conference ahead of a forum on federal-state relations organised by Penang Institute and the Penang select committee on federal-state relations.

Not about forming a bloc

Committee chairman Gooi Hsiao-Leung said the event was not about states fighting Putrajaya but about recognising them as partners in nation-building.

He said the forum was not meant to create a political bloc, but to enable states to exchange ideas and work together while recognising their different needs under a clear and fair framework.