PUTRAJAYA’S decision to allow Sabah and Sarawak autonomy over projects costing up to RM50 million has been lauded as a positive step.

Politicians and analysts told The Malaysian Insight the decision is consistent with Prime Minister Anwar Ibrahim’s decentralisation policy to give more power to the Borneo states.

“The announcement showed Anwar is serious about addressing the concerns that have ignited and united the people of Sarawak and Sabah, especially in the last two general elections,” Universiti Putra Malaysia political expert Jayum Jawan told The Malaysian Insight.

Jawan said Anwar is aware that he cannot afford to make Sarawak and Sabah unhappy as he needs them as a balancing factor in his unity government.

University of Tasmania’s James Chin said it is not the quantum that matters.

To the man in the street, the power to decide on projects of RM50 million might sound impressive, he said.

“It’s actually not. It does not amount to a lot when we see that the national budget runs into billions of ringgit.”

Chin said the point is the states have been granted the power to decide.

He added that this means a “much smoother” execution of projects as Sarawak and Sabah no longer have to seek Purajaya’s approval to proceed.

Chief political secretary to the Sarawak premier, Fazzrudin Abdul Rahman had earlier said the decision would allow for “concerted development”.

The Tupong assemblyman said it meant some red tape could be bypassed, “allowing less bureaucracy in the way of implementing development projects in East Malaysia thus expediting needed projects to be implemented for the rakyat”.

“It is in part a restoration and realisation of Malaysia Agreement (MA63) rights for Sarawak and Sabah,” he added.

For Sarawak, Fazzrudin said swift implementation of development projects is key to the fulfillment of the state’s post-Covid development strategy.

Chin said the decision showed Putrajaya, Kuching and Kota Kinabalu are well aware the “fundamental issues” that had created much of the tension between the Borneo states and the peninsula.

Chin was referring to the tussle over control of the Sabah and Sarawak’s oil and gas resources.

“They can’t resolve who owns oil and gas, the continental shelf. These are the really big issues. So they go for short-term issues that make everybody feel good, make everybody feel happy.”

Anwar is scheduled to sit down with Sabah and Sarawak leaders in a first meeting of the Malaysia Agreement 1963 Implementation Action Council to decide on a special grant for the two states.

Sabah and Sarawak are entitled to the grant under article 112D of the Federal Constitution.

Sarawak gets RM25 million and Sabah, RM16 million, per year, with the amount to be reviewed every five years. But the review has never happened.

Anwar has promised an increase but said the amount “should be reasonable”.

Chin said the increase is “more or less a done deal”.

He also expected Sabah’s demand for 40% of taxes and other revenue the federal government collects in the state to be fulfilled.

The state has not received a sen even though it is entitled to the money, according to the Federal Constitution.

“They are still working out the formula and Sabah will be paid in stages,” he said.

“They are just waiting for the right time to announce it.”

Jawan warned Sarawak and Sabah folk not to celebrate yet.

“It’s still at the discussion stage.” – January 7, 2023.