THE Sabah and Sarawak chief ministers have welcomed the increase in special grants under Budget 2020, but want Putrajaya to reveal the formula used to calculate the entitlements.

They said although the revenue entitlement matter was raised in the federal-state committee tasked with relooking the Malaysia Agreement 1963, no calculation method was laid out.

When tabling Budget 2020 on Friday, Finance Minister Lim Guan Eng announced a special allowance as per Article 112D of the federal constitution, with Sabah getting RM53.4 million, and Sarawak, RM34 million.

“We are grateful for the special allowance, although it is not the amount we had expected,” said Sabah Chief Minister Mohd Shafie Apdal in Kota Kinabalu today.

“But the formula (to calculate the amount), we don’t know.”

Shafie’s Sarawak counterpart, Abang Johari Openg, said he, too, is unclear about the calculation, adding that Putrajaya should come up with “the right formula”.

“We want the right formula… (to determine how much) Putrajaya should give. It cannot be a one-off thing.

“If there’s an increase in federal revenue, Putrajaya needs to come up with the appropriate formula.”

When it comes to the matters of revenue entitlement and oil royalty, he said, the saying “susah sama susah, senang sama senang” (stick together in both good and bad times) should apply.

“What we don’t want is for them to forget Sabah and Sarawak when they are happy. This is what we are afraid of.”

Sarawak has opted for a nett revenue entitlement, while Sabah has gone for a 40% entitlement as provided for under Article 112D.

Under the previous Barisan Nasional administration, Sabah was given only RM26.7 million, and Sarawak, RM16 million, per annum.

The latest budget – the second tabled by the Pakatan Harapan government – sees the figures doubling, with Lim saying the amount will double again to RM106.8 million for Sabah and RM64 million for Sarawak within five years.

Shafie added that the distribution of oil royalty will depend on the outcome of exclusive discussions between him, Abang Johari and Prime Minister Dr Mahathir Mohamad. – October 14, 2019.