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KUCHING: Sarawak’s RM1.5-billion Special Grant remains an interim payment, with negotiations continuing towards a sustainable formula for determining the State’s annual grant under Article 112D of the Federal Constitution.
The increase from RM600 million, effective this year, was announced by Prime Minister Datuk Seri Anwar Ibrahim during the national level Malaysia Day celebration here on September 16.
Anwar had said the federal government would continue negotiations with Sabah and Sarawak to finalise a sustainable formula for the annual Special Grant.
In a special interview with Sarawak Tribune, Sri Aman Member of Parliament Datuk Seri Doris Sophia Brodie, Senator Datuk Ahmad Ibrahim and Tamin assemblyman Christopher Gira Sambang said the announcement should not be interpreted as the conclusion of Sarawak’s negotiations on the Special Grant.
Doris said the RM1.5 billion should be viewed as an interim arrangement rather than Sarawak’s final position.
“Based on my understanding, the answer is no. It is expressed as an interim payment. I think the permanent annual amount remains subject to ongoing federal and Sarawak negotiations to establish a sustainable Article 112D formula,” she said.
Ahmad similarly said the amount should not at this stage be regarded as a permanently fixed entitlement.
He pointed out that Anwar had described it as an interim Special Grant, while negotiations remained ongoing on a sustainable formula.
However, Ahmad stressed that this did not mean the federal government could simply alter the amount at will.
“The Special Grant has its constitutional foundation in Articles 112C and 112D of the Federal Constitution,” he said.
He said Article 112D provided for the Special Grant to be reviewed between the federal government and Sarawak.
According to Ahmad, where an agreement was reached, it would be given effect through an order of the Yang di-Pertuan Agong.
If the two governments could not reach agreement on a matter during a review, he said it could be referred to an independent assessor whose recommendation would be binding on both governments.
Gira also distinguished between Sarawak’s entitlement to the Special Grant and the amount currently being paid.
“Sarawak’s entitlement to the Special Grant is constitutionally protected, but the RM1.5-billion quantum is not yet a permanently fixed amount,” he said.
He said the amount could be reviewed in future but should not be reduced or changed through a unilateral political decision by the federal government.
On whether RM1.5 billion could be compared with a specific potential entitlement under Article 112D, Ahmad cautioned against treating it as a fixed benchmark.
He said Article 112D did not prescribe a fixed percentage or final amount for Sarawak.
“This is different from Sabah’s constitutional arrangement. Sabah has the specific two fifths, or 40 per cent, formula contained in Part IV of the Tenth Schedule. Sarawak does not have an identical 40 per cent provision,” he said.
Ahmad said the review for Sarawak took into account the federal government’s financial position and the needs of Sarawak, including ensuring that state revenues were adequate to meet the cost of state services and their reasonable expansion.
Gira likewise said there was presently no exact figure that could be used to determine whether RM1.5 billion represented Sarawak’s full entitlement.
He said a proper assessment would require transparent and auditable information on factors including federal taxes and revenues collected from Sarawak, Sarawak’s contribution through oil and gas and other sectors, its geographical area, rural service delivery costs, infrastructure needs, population and inflation.
“Until these figures and the proposed formula are disclosed, nobody can responsibly claim that RM1.5 billion represents Sarawak’s full entitlement,” he said.
Doris, meanwhile, said she could not comment on how the RM1.5-billion figure was determined because the announcement did not disclose a detailed calculation formula.
“PMX only described it as the outcome of negotiations and the spirit of solidarity and friendship,” she said.
On whether the announcement settled Sarawak’s constitutional financial claim, Doris said it did not.
“It’s not. It should be viewed as an interim arrangement, not Sarawak’s final position by virtue of the word interim,” she said.
She said negotiations would continue towards a permanent and sustainable formula.
“Acceptance of the interim payment doesn’t necessarily settle Sarawak’s constitutional position. I strongly believe that Sarawak will continue to seek a clear, sustainable and mutually agreed Article 112D formula,” she said.
Ahmad also said the RM1.5 billion did not represent a final settlement of the Article 112D issue.
He noted that the increase from RM600 million to RM1.5 billion represented an additional RM900 million and was 2.5 times the previous amount.
“But Article 112D is about establishing the proper constitutional basis for the Special Grant over the longer term.
“Until a sustainable formula has been agreed between Sarawak and the federal government and given the appropriate constitutional effect, I would regard the matter as still under negotiation,” he said.
Gira said Sarawak therefore retained its position to negotiate for a higher amount and a transparent, auditable and mutually agreed long term formula.
“In my view, RM1.5 billion should now serve as the minimum benchmark, not the ceiling, for future negotiations,” he said.
He said Sarawak ultimately needed a permanent constitutional mechanism that provided certainty and allowed the State to undertake long term development planning.
Doris said the broader issue was not merely the amount announced.
“We all must see the overarching aspects here, that the RM1.5 billion is an important interim step but the real issue is not merely the quantum. It’s about establishing a transparent, constitutional and sustainable formula for Sarawak’s Special Grant,” she said.
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