PM Anwar agrees to use Sarawak’s formula for special annual grants under Article 112D, Sarawak to receive initial RM300 mln

Anwar (centre) speaks while (from left) Hajiji, Abang Johari, Fadillah and Armizan look on during the press conference in Kuching on Jan 20, 2023.

By Nur Ashikin Louis and Nancy Nais

KUCHING, Jan 20: Prime Minister Dato Seri Anwar Ibrahim has agreed to use Sarawak’s formula for special annual grants to Sabah and Sarawak under Article 112D of the Federal Constitution, with Sarawak to receive the first grant worth RM300 million.

This marks an increase from the usual RM16 million in annual grants received by Sarawak since the early days of Malaysia’s formation.


Anwar said Article 112D stated that Sabah and Sarawak are entitled to an allocation of special grants annually based on certain measures and subjected to the Federal government’s financial ability.

In the past, he said, the Malaysian leaders including the first Prime Minister Tunku Abdul Rahman Putra Al-Haj had decided on the provision considering that Sabah and Sarawak were relatively poor and underdeveloped.

“However, the provision (RM16 million) is no longer reasonable today. So the Premier of Sarawak (Datuk Patinggi Tan Sri Abang Johari Tun Openg) has proposed a formula.

“Therefore, for the initial stage, we will increase the provision from RM16 million to RM300 million as a contribution.

“This means we would not be bound by the RM300 million amount because our financial situation is also limited and the formula would be reviewed so that it can be adopted,” he said at a special press conference after the Malaysia Agreement 1963 (MA63) Technical Committee meeting held at the Sarawak Legislative Assembly (DUN) Complex today.

Anwar also mentioned that the special grant to Sabah would be revised to be around RM260 million according to the same formula.

“The formula needs to be (adopted) because if Sarawak accepts (special grant) just like that, it would be bound to the amount.

“How can the government not be able to give the special grant, and resorted to only giving RM16 million only? It makes a mockery of our interpretation of the MA63 agreement,” he added.

Also present were Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, Sabah Chief Minister Datuk Seri Hajiji Noor, Deputy Prime Minister Dato Sri Fadillah Yusof and Minister in the Prime Minister’s Department (Sabah and Sarawak Affairs) Datuk Armizan Mohd Ali. — DayakDaily