Same song but different conductor for MA63

 

We welcome Muhyiddin Yassin’s recent statement about the need to step up efforts to place Sabah and Sarawak on par with other states in infrastructural and technological development. But can we please have more action without the rhetoric and false promises?

According to Muhyiddin, it was to close the wide gap between East and West Malaysia that the Sabah and Sarawak Affairs portfolio was created under the Prime Minister’s Department in March last year. Maximus Ongkili of Sabah is the minister in charge. His responsibilities include dealing with issues pertaining to the Malaysia Agreement of 1963 (MA63).

Muhyiddin could well have said that Sabah and Sarawak, as signatories of MA63, deserved special attention over the peninsular states.

Ongkili’s deputy, Hanifah Hajar Taib, takes care of Sarawak issues. They both need to understand the situation and sentiment concerning MA63 on the ground.

Last year, as soon as he was appointed, Ongkili said in a press statement that one of his main tasks was to solve issues on MA63 within six months. Another year has gone and Sabah is still the poorest state in the federation.

In his statement, Ongkili also said the previous government had failed to amend Article 1(2) of the Federal Constitution because it did not include in detail the terms as per MA63 and left it up to interpretation.

I would like to add that every government Ongkili has served under has failed to address the MA63 issues, from autonomy to oil revenue.

Hanifah has said the government was maintaining its stand against making public the final report of the special Cabinet committee set up to review the implementation of MA63.

The report is now classified under the Official Secrets Act. It has been explained that the content is technical in nature and involves sensitive matters.

So the process of giving back Sabah and Sarawak rights, which started when Pakatan Harapan was in power, is now in limbo.

Last September, just before the Sabah election, Muhyiddin told voters to choose a state government that would be aligned with the federal government to facilitate the administration and development of the state.

The Warisan-led government lost the election and Muhyiddin’s Gabungan Rakyat Sabah formed the new government.

The next state election will be in Sarawak and the general election can be held anytime after Parliament convenes. Will the federal leaders promise the sky for Sabah and Sarawak again?

While Sarawak has already settled the petroleum sales tax issue with Petronas, receiving its first payment of RM2.95 billion for 2019, Sabah is waiting to do the same. According to deputy chief minister Jeffrey Kitingan, the Sabah government is expected to collect RM1.25 billion in sales tax on oil and gas from Petronas this year.

Sabah and Sarawak are dependent on oil royalties for development expenditures. It is worrying for both states that Petronas posted its first-ever annual loss of RM21 billion for the financial year ended Dec 31, 2020.

With lower production and lower export volumes, complicated by Covid-19’s effect on the economy, both states will see a decline in oil royalty and petroleum sales tax is expected to make up the shortfall in oil revenues in the short term.

Despite Petronas’ poor financial results, the company declared a dividend payout of RM24 billion to the federal government.

Under the 2021 budget, Sabah was allocated RM5.1 billion by the federal government for infrastructure development, apart from RM3.8 billion for the continuation of the Pan-Borneo Highway project and various packages of its construction.

This allocation will be used to build and upgrade water supply, electricity and road infrastructures as well as health and education facilities. It is important to note that whatever is allocated to Sabah is to keep a catch-up game in play. It is not to keep up with the rest of Malaysia.

Sabah’s dependency on palm oil and crude petroleum will continue to influence the overall economic growth of the state. Both exports depend on market trends, governed by global prices and demand. Sabah does not have a cluster of industries as its backbone like Penang and Selangor and will continue to be reliant on palm oil and crude oil as its main sources of income.

The disparity in income has spawned MA63 activism in East Malaysia. Negative sentiments against the federal government are strong and cannot be ignored. Putting the negotiated 21 points agreed between the Sabah and Sarawak chief ministers with the federal government during the Pakatan Harapan administration for implementation is the right thing to do.

It would be wise for the federal government to take heed and act rather than pay lip service. - FMT

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.