KUCHING: Any formula for payment of the special federal grant to Sarawak will only be finalised after a technical committee on the Malaysia Agreement 1963 (MA63) examines the outcome of negotiations between the federal government and the state government, says deputy prime minister Fadillah Yusof.
He said the matter had been agreed at the technical committee level, including efforts to formulate a distribution formula for allocations under the Federal Constitution that took into account national interests as well as the rights of Sabah and Sarawak.
“Currently, the finance ministry has already held discussions with Sabah. After this, it will hold discussions with Sarawak. Sarawak already has its own formula, and the federal government is also looking at it from its perspective,” he said.
“Once discussions have taken place, the outcome will be reported to the technical committee chaired by me, and we will examine it before it is finalised,” he told reporters at an event in the Petra Jaya parliamentary constituency here tonight.
Fadillah said no formula had been agreed upon, and that the decision would depend on the outcome of negotiations between the Treasury and the Sarawak financial secretary’s office.
“As for what the formula will be, we do not know yet. We will wait for the discussions and once it is finalised at the technical committee level, we will inform the media,” he said.
Yesterday, Sarawak premier Abang Johari Openg said the state government will propose that the special grant be determined based on a percentage of its revenue. The proposed formula would tie the grant to Sarawak’s total income, particularly tax revenue, with a flexible mechanism that reflects the state’s current financial performance.
On Wednesday, the finance ministry, in a written reply in the Dewan Rakyat, said the federal government would hold negotiations with the Sarawak government this year for a review of the amount of the special grant.
