Special federal grant: MoF to meet Sarawak after talks with Sabah, says DPM

KUCHING (Feb 14): Federal-state negotiations on the review of the special grant formula under Article 112D of the Federal Constitution are entering a decisive phase, with the Ministry of Finance (MoF) set to engage Sarawak after completing talks with Sabah, said Deputy Prime Minister Datuk Amar Fadillah Yusof.

Fadillah, who chairs the technical committee overseeing matters related to the Malaysia Agreement 1963 (MA63), said a mutually agreed allocation mechanism had already been endorsed at the MA63 Action Council level.

“One of the matters agreed upon at the MA63 Action Council is how we are going to come up with the formula for allocation under Article 112D.

“The MoF has already held discussions with Sabah and will next meet Sarawak,” he told reporters after the annual grant handover ceremony for mosques and suraus in the Petra Jaya parliamentary constituency at Masjid Darul Ibadah, Kampung Semariang Lama here.

He said Sarawak already has its own proposed formula, while the federal government is also approaching the matter from its fiscal perspective.

“It is hoped that through the meeting, we can finalise the best formula — one that safeguards national interests as well as what is enshrined in the Constitution, where Sabah and Sarawak have special rights in terms of allocations,” he added.

Fadillah said once discussions between federal and state officials conclude, the outcome will be reported to the technical committee for deliberation before being finalised.

“At this point, I do not yet have the details. When they report to the technical committee, only then can it be finalised.

“We will inform the media once a decision is made,” he said.

When asked whether the federal government would adopt Sarawak’s proposed formula, he stressed that the matter remains subject to committee deliberation.

“They need to discuss it first. We do not know what the final formula will be. I cannot pre-empt the decision of the committee,” he said.

He also revealed that the committee had already convened its first meeting, although discussions then focused primarily on education and healthcare matters.

Also present was Deputy Minister in the Sarawak Premier’s Department (Law, MA63 and State-Federal Relationship) Datuk Sharifah Hasidah Sayeed Aman Ghazali.