SARAWAK has rejected the federal government’s proposal for a fixed amount yearly on its obligation to pay Sarawak the special grant.

Sarawak Premier Abang Johari Openg told reporters at his Gedong constituency Hari Raya get together in Kuching today that he will not budge on his insistence that a formula be worked out to determine payment amounts.

Abang Johari said his demand is both “very practical and pragmatic” as the computation of the amounts would be fair to both federal and state governments. 

“We don’t want (a situation where) they (the federal government) make money, (but) they don’t share with us,” he said asked him on Sarawak’s position on the special grant, stipulated under Section 112C of the Federal Constitution, amidst reports of his rejection at the last Special Council on Malaysia Agreement 1963 meeting in mid-April.

According to a source who was at the talks, Putrajaya reportedly agreed to pay a fixed amount yearly and Abang Johari told the meeting, chaired by Prime Minister Ismail Sabri Yaakob, that “the federal government should not be taking all and refusing to share”. 

“If the country is doing well then it (the revenue) must be shared. If the country is not doing well then we all share the burden together. 

The premier said based on the formula he is proposing, if the country’s revenue is less, then the grant to be paid would also be less. 

“We are also concerned with the financial position of the federal government,” he added. 

But he said the federal government “cannot give (the amount) like (they) are (feeding) chickens”. 

“I am very firm on this formula. I insist on (it). 

“The principle must be there. How can we ask for more when the country is not doing well? 

“That would not be fair.” 

The premier also said the push for the formula is nothing new. 

He said when the short-lived Pakatan Harapan (PH) government was in power, he had similarly proposed the same formula to then finance minister Lim Guan Eng.

The PH government in 2020 paid Sabah RM53.4 million and Sarawak RM32 million. 

The special grants are proceeds from the taxes, fees and dues collected, levied or raised by the federal government in Sabah and Sarawak. 

One frustration Sarawak has is on the stamp duty for land transactions. All duties collected go to the federal coffer, but issues pertaining to land are a state matter.

The source said collected stamp duties amount to around RM500 million a year. 

“What is RM32 million when they are collecting RM500 million from land stamp duty alone?” the source said.

Nonetheless, neighbouring Sabah is elated with the RM125.6 million special grant it is getting this year, with Minister in the Prime Minister’s Department (Sabah and Sarawak Affairs) Maximus Ongkili describing it as “one of the biggest breakthroughs in resolving the special grant for Sabah”. 

Ongkili said Sabah is “proud” because the amount is 135% more than the amount the PH government allocated for the state. – May 5, 2022.