Sabah and Sarawak have agreed to establish a joint consultative review committee to advance talks on Putrajaya’s financial obligations to its Borneo regions, Minister in the Prime Minister’s Department (Sabah and Sarawak Affairs) Dr Maximus Ongkili said today.

The financial obligations are terms agreed under the Malaysia Agreement 1963 (MA63).

Ongkili, in a statement, said the talks will focus on reviewing the special grants, including the 40% reimbursable provision for Sabah, as stipulated under Article 112(D) of the federal constitution.

Under the constitution, a review was to have taken place “from the end of the year 1968”. No review ever took place.

Ongkili, who will chair the committee, said its terms of reference and members have also been agreed on.

The Sarawak delegation will be headed by Deputy Chief Minister Awang Tengah Ali Hassan, Attorney-General Talat Mahmood Abdul Rashid and Financial Secretary Ahmad Tarmizi Sulaiman while the Sabah delegation will be headed by the state’s Second Finance Minister, Masidi Manjun.

Other members of the Sabah delegation are its State Secretary Safar Untong, Attorney-General Nor Asiah Mohd Yusof and Finance Ministry permanent secretary Rusdin Riman.

The Finance Ministry delegation will be headed by Tengku Zafrul Tengku Abdul Aziz.

Ongkili said the committee will be tasked to review all the legal provisions relating to financial matters stipulated under the federal constitution and the MA63 as well as to scrutinise the calculations and payments of the annual grant and other grants.

“The committee is also entrusted to come up with resolutions to the annual grant payment demanded by both Sabah and Sarawak, as set under the Special Council on the Malaysia Agreement 1963,” he said.

The committee is expected to meet immediately after the Special Council meeting on April 13. – April 7, 2021.