Sarawak and Sabah’s special grants cannot be compared, says Fadillah

 The deputy prime minister points out that both states are governed by different provisions under the Federal Constitution.

Deputy prime minister Fadillah Yusof said Sarawak is currently receiving an interim special grant of RM600 million while negotiations are ongoing on a revised mechanism with the federal government. (Bernama pic)

PETALING JAYA:

The special grants for Sabah and Sarawak cannot be compared as both states are governed by different provisions under the Federal Constitution, says deputy prime minister Fadillah Yusof.

Fadillah, who is also Petra Jaya MP, noted that Sabah has a special constitutional provision under which 40% of the revenue derived from the state is returned to Sabah, the Borneo Post reported.

“That provision is specifically for Sabah because it is enshrined in the constitution. Sarawak does not have such a provision,” he was quoted as saying.

Fadillah was responding to questions on whether Sarawak could expect an increased special grant, similar to Sabah.

He said Sarawak’s entitlement was governed by Article 112D of the Federal Constitution, with the state currently receiving an interim special grant of RM600 million while negotiations on a revised mechanism continue with Putrajaya.

“What Sarawak has proposed is a formula to provide a clear basis for calculating adjustments. That proposal is still under negotiation, and we are awaiting a decision from the finance ministry,” he said.

In February, Sarawak premier Abang Johari Openg said the state government would propose that the formula tie the grant to Sarawak’s total income, particularly tax revenue, with a flexible mechanism that reflects the state’s current financial performance.

In May, Prime Minister Anwar Ibrahim said the interim allocation of RM600 million to Sabah will be increased to RM1.5 billion, pending the finalisation of the state’s constitutional claim to a 40% revenue entitlement. - FMT