As required by the Federal Constitution, Sabah has been trying for centuries to recover 40 % of its income, which it considers vital for economic growth.
The national level is where all forms of taxation are collected, according to the law. Based on their people, the federal government finally distributes a portion of this to the state.
Under the Malaysia Agreement 1963 ( MA63 ), the federal government is supposed to return 40 per cent of Sabah’s revenue to the autonomous state, but this was not fulfilled from 1974 to 2022.
In 2022, the provincial and Sabah governments agreed on “interim” payment to the latter till 2026 otherwise, pending further discussions on the initial 40 per cent deal.
In May, Mr Anwar said Sabah’s RM16 billion national funding planning for 2024- which is distinct from revenue-based grants for each condition- surpasses the 40 per share it is asking for, Bernama reported.
He added that, in comparison to those in power in the previous ten years, his government has done more to address the numerous issues that have n’t been resolved by MA63 in the last two and a-half years.
However, a previous Sabah Law Society leader criticized Mr. Anwar’s assertions as being deceptive, noting that federal funds are only available for specific expenses, such as development projects.
The Sabah condition government should receive a special offer in contrast to the 40 % net profits entitlement under MA63, according to Mr. Roger Chin, who was reportedly quoted by the Malay Mail as saying in June.
” It is a fundamental aspect of Sabah’s financial freedom and self-determination, enabling the position to invest in its equipment, public companies, and development efforts as it sees match”.
But, Mr Anwar on Aug 4 clarified that the RM16 billion is Sabah’s full allocation in 2024 for spending on things like teacher pay, road maintenance and border protection, and not just for development tasks, Bernama reported.
” If you want to get a companion, work like one. There must be etiquette when it comes to connection. You do n’t need to thank us, just show a little appreciation. If ( the allocation ) is not sufficient, we can negotiate, and ask for more in a friendly manner”, he said.
Mr. Anwar emphasized that he intended to uphold Sabah’s right under the Federal Constitution and that discussions were continued, as he retorted his claim that his government had done more in this regard than earlier administrations.
” We should realize it, yes, but this year we did more than the 10 years earlier. Give it some thought. It’s not that I need a’ thank you’, I do n’t need a thank you. However, if you’re unhappy, you’ll need to accept the facts and start negotiations repeatedly,” he said in a report from the Malay Mail.
” Another Malay members in the Cabinet- Armizan, Ewon… they are constantly saying not much. They continually ask for more, and that’s where I get tired of. But it’s ok, as long as they ask well as a buddy”.
Mr. Anwar referred to Ewon Benedick, the minister of business development, and Armizan Ali, the minister of local industry and cost of living.
On Jul 18, Sabah’s Deputy Chief Minister Jeffrey Kitingan, who is also Member of Parliament for Keningau, urged the Anwar authorities to prioritise the 40 per cent profit planning for Sabah.
According to him, he claimed that the proposed 12-month timeline for implementing the planning, as discussed and agreed upon during MA63 technical council meetings on the subject, had come to an end that evening.
” Despite this, there has been no improvement or news regarding this important issue”, he said. The federal government’s lack of seriousness is evidently demonstrated by this lack of action.
However, the Sabah Law Society is pursuing a criminal assessment of the country’s 40 per cent rights state.
The Supreme Court ordered the High Court to set a time for a full hearing of the judicial review on June 18 and denied the national attorney-general’s request to hear it.
The law world contends that both the federal and Sabah governments owe their legal responsibilities by failing to examine the payments made in 1974 as required by law and that the 40 % offers from 1974 to 2021 still are due.
Mr Chin, the former Sabah Law Society chairman, reiterated on Monday that Mr Anwar should never combine Sabah’s 40 per cent special offer with its federal allocation.
” The RM16 billion allocation addresses areas that are inherently federal responsibilities. According to him, these include infrastructure, security, and education, which are essential services that every state as a member of the federation expects and receives.
The special grant provides additional financial support beyond the federal allocations, according to Sabah, to meet its unique needs and contributions.