By Karen Bong
KUCHING, Dec 16: Several outstanding matters under the Malaysia Agreement 1963 (MA63) are still being fine-tuned as they involve differing interpretations of the law between the federal and Sarawak governments, which is more complex and will take more time to resolve.
Deputy Prime Minister Datuk Amar Fadillah Yusof explained that these unresolved areas are not straightforward as they touch on differing interpretations of the Federal Constitution and existing federal and State laws.
“It is a question of interpretation. There are laws at the federal level, and there are also laws at the State level. These are the areas we are now fine-tuning. Hopefully we will be able to resolve them; there are not many outstanding, but they still need to be addressed,” he said.
Fadillah highlighted this when speaking during a forum session titled Exploring Sarawak’s Future: The Fourth Madani Budget and 13MP as Catalyst for Growth as part of the 2026 Sarawak Budget Conference at the Borneo Convention Centre Kuching (BCCK) today.
He stressed that the federal government’s commitment under MA63 is now focused on ensuring effective implementation of what has already been agreed, describing this as the key challenge moving forward.
Fadillah noted that under the Madani Budget, the development allocation under the Special Grant for Sarawak and Sabah has seen a significant increase from RM16 million previously to RM600 million.
On narrowing the development gap between remote and urban areas, he said the government has introduced special programmes that go beyond physical infrastructure to include communication and connectivity.
“In closing the gap between rural and urban areas, it is not just about physical development but also communication, connectivity and related aspects. These have been addressed,” he said.
Touching on MA63-related development spending, Fadillah noted that although RM6 billion is allocated annually for physical development, actual utilisation often reaches only about 80 to 90 per cent by year-end.
“The challenge is implementation. Why do we only spend 80 to 90 per cent?” he asked.
To address this, he said technical departments, including the Public Works Department (JKR) and water agencies in Sarawak and Sabah, have been given authority to implement projects valued below RM50 million.
However, he acknowledged concerns over capacity and execution, prompting the government to establish a dedicated task force to ensure approved projects are implemented efficiently and within the same budget year.
“This task force is not only to monitor, but to ensure whatever is approved must be implemented based on the budget provision for that particular year,” he said, adding that improving spending efficiency remains a key area of focus.
Meanwhile, Minister of Finance II Senator Datuk Seri Amir Hamzah Ibrahim said public discourse often focuses on what has yet to be done under MA63, while overlooking significant achievements already delivered.
He said under Fadillah’s chairmanship of the MA63 committee, many original aspirations of the agreement have been realised.
“For example, it has always been Sarawak’s aspiration to have its own airline. The government facilitated the creation of the aviation body, and even with AirBorneo starting operations in January next year, the federal government is still providing RM209 million in subsidies (to sustain the Rural Air Services),” he said.
Amir added that similar support has been extended to Sabah following the handover of Sabah Electricity to state control, with the federal government continuing subsidy support for the next six years to bridge the gap between electricity tariffs and production costs.
The federal government, he said, is also supporting infrastructure development such as the Southern Link to strengthen Sabah’s electricity supply.
“At the end of the day, we are all part and parcel of one country. There may be differences in maturity and growth, and adjustments will be made along the way, but we must continue to operate as one nation,” he said, adding that this principle reflects the wisdom embedded in MA63. — DayakDaily
