‘When there’s more, share more’: Putrajaya, S’wak to fine-tune flexible Article 112D revenue-sharing formula

Sarawak is seeking a flexible Article 112D formula, with its special grant adjusted between 5 and 10 per cent according to the federal government’s fiscal position. Photo credit: Ukas
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By Amanda L

MIRI, Sept 13: Sarawak wants its Article 112D special grant to be tied to the federal government’s revenue, with the share ranging from 5 to 10 per cent depending on its fiscal position, says Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said the proposal was tabled during Malaysia Agreement 1963 (MA63) implementation negotiations in Kota Kinabalu involving Prime Minister Datuk Seri Anwar Ibrahim and Sabah Chief Minister Datuk Seri Panglima Hajiji Noor.

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Speaking at the Parti Pesaka Bumiputera Bersatu (PBB) Northern Sarawak special convention in Miri today, he said Sarawak proposed that the special grant be calculated based on a percentage of federal revenue, with the share adjusted according to the country’s fiscal position.

“If national revenue increases, it should be shared with Sarawak through a formula. Whether it is 10 per cent or 5 per cent depends on the fiscal position of the country.

“When there is more, share more. When it is lower, share less. Sarawak is very flexible. Sarawak is very rational,” he said.

He stressed that Sarawak’s position was based on the federal government’s ability to pay rather than an inflexible demand.

“We are not demanding anything unreasonable. We are making our demands based on the affordability, capability and capacity of the federal government,” he stressed.

According to the Premier, Anwar agreed in principle to the formula approach, with further technical discussions to be held between the Sarawak and federal finance ministries.

He also disclosed that Federal Finance Ministry officials had initially claimed Sarawak’s revenue was lower than the federal allocations it received. However, Abang Johari said official statistics for 2022, 2023 and 2024 showed Sarawak’s revenue was higher than the funds received from the federal government. — DayakDaily

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