PRIME Minister Anwar Ibrahim said the annual expenditure distribution and appointment of Sabah and Sarawak representatives to the Inland Revenue Board are among the main issues in the Malaysia Agreement 1963, which have been successfully resolved by the unity government. 

He said the government has agreed to transfer the authority for expenditure on public infrastructure development to Sabah and Sarawak, through their respective Public Works Departments. 

Anwar said the federal government will also fund public infrastructure construction projects in Sabah and Sarawak, with the entire allocation being distributed to the state governments conditionally, but that it must go through strict financial supervision and regulations and be monitored by the Finance Ministry. 

“As an example, the annual allocation, for example, Sarawak has only received RM16 million thus far and it considers the amount unreasonable. 

“We created a format and regulations to increase the allocation to RM300 million per year, subject to some details of the agreement,” he said when met by reporters after a Chinese New Year open house hosted at the Kuala Lumpur and Selangor Chinese Assembly Hall. – Bernama, January 22, 2023.