KUALA LUMPUR, Oct 9 — The Malaysia Agreement 1963 (MA63) should be seen as part of a “Waad Nasional” or national promise and a national responsibility that must receive a national response, Prime Minister Datuk Seri Anwar Ibrahim said today in his Budget 2027 speech.

Referring to the agreement which was signed between the founding partners of Malaysia, Anwar said that 12 items under MA63 have been finalised so far, and also listed other measures and allocations that the federal government has been channelling to Sabah and Sarawak.

Anwar said the federal government has agreed to increase Public Service Department (JPA) scholarship offers to Sabah and Sarawak’s students.

“This means 4,200 Sabahans and Sarawakians will get the opportunity to further their studies every year,” he said in the Dewan Rakyat.

In his speech, Anwar noted that the federal government’s special grants over the past decades for Sabah and Sarawak had not been in line with their developmental needs.

He said the current federal government has increased these special grants three times, with the latest interim payment being RM1.5 billion, and that there would be continued talks with Sabah and Sarawak to finalise a fair and sustainable annual formula.

Among the 12 items in MA63 which had been finalised under the current government are permanent representatives from Sabah and Sarawak in the Inland Revenue Board and the Bintulu port becoming a Sarawak-owned port.

They also include Sarawak taking over MASWings, which is now known as AirBorneo, while the federal government still provides RM209 million in subsidies to benefit 820,000 passengers in the interiors; and handing over electricity regulatory powers to Sabah while the federal government continues providing RM600 million to ensure continued electricity supply.

Anwar said the proposed federal allocation for Sabah and Sarawak next year remains the highest, with Sabah to receive RM18.7 billion in 2027 (as compared to RM17.6 billion this year) and Sarawak to receive RM16.2 billion (as compared to RM15.1 billion).

Among other things, Anwar said RM3.3 billion has been allocated next year to continue road and highway projects in Sabah and Sarawak.

Noting that the Sarawak state government has expressed intent to develop a special economic zone in Sibu, Anwar said the federal government has started official talks to finalise the framework for incentives, one-stop centre to facilitate investments and strategic infrastructure needs. - malaymail