Special federal grant to match Sarawak contributions proposed, says Abang Johari

KUCHING (Feb 13): Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has proposed that the federal government consider basing financial allocations to Sarawak on the state’s actual revenue contributions.

He said the idea had been discussed with Prime Minister Datuk Seri Anwar Ibrahim as part of efforts to review and improve the formula for special grants under the Federal Constitution.

“The allocations returned to Sarawak should reflect the revenue the state contributes, including taxes, earnings from natural resources, and other economic activities,” he told reporters at the Spektra Permata (RSP) Santubong Project site in Santubong near here.

Earlier, Abang Johari attended the Key Handover Ceremony for the RSP Village Expansion Scheme (SPK) in Santubong, where 53 of 62 completed units were handed over to beneficiaries.

He added that the current formula for Sarawak’s special grants should be regularly reviewed to keep pace with the state’s economic growth and development needs.

“Periodic reviews ensure allocations are fair and align with the principle of revenue sharing within the Malaysian Federation,” he said.

Abang Johari noted that Sarawak’s contributions go beyond petroleum and gas, spanning trade, industry, and investment sectors.

He suggested that the allocation mechanism should remain flexible to reflect shifts in the state’s economic structure.

Regarding the special grant, which has been raised to RM600 million, he said the sum must adequately support both development projects and the welfare of Sarawakians.

He added that discussions between the state and federal governments would continue to reach an arrangement beneficial to both sides.

“Sarawak has always supported the nation during challenging times, and it deserves fair consideration in revenue distribution.

“Our duty is to ensure every sen earned is returned to the people through infrastructure, basic amenities, and effective welfare programs,” he added.