Sarawak proposes 5%-10% share of federal revenue as special grant

 State premier Abang Johari Openg said national revenue should be shared through a formula: 'When there is more, share more; When it is lower, share less'.

Sarawak premier Abang Johari Openg said the prime minister had agreed to the proposal in principle during discussions by the Malaysia Agreement 1963 committee.

PETALING JAYA:

The Sarawak government has suggested that the special grant paid to the state by the federal government be based on a share of federal revenue ranging between 5% and 10%.

Sarawak premier Abang Johari Openg said Prime Minister Anwar Ibrahim had agreed in principle when the matter was brought up during discussions by the Malaysia Agreement 1963 committee.

“If national revenue increases, it should be shared with Sarawak through a formula. When there is more, share more. When it is lower, share less. Sarawak is very flexible. Sarawak is very rational,” he said at a special convention of Parti Pesaka Bumiputera Bersatu (PBB), according to Dayak Daily.

He said further discussions would be held between the state and federal finance ministries.

Abang Johari said there was nothing unreasonable about the proposal, which was based on “the affordability, capability and capacity of the federal government”.

Last year, the federal government gave special grants of RM600 million each to Sabah and Sarawak, two years after the grant was raised to RM300 million.

Anwar said in May that the RM600 million allocation to Sabah would be increased to RM1.5 billion pending the finalisation of the state’s constitutional claim to a share of net federal tax revenue. - FMT