Increased funds for Sabah, Sarawak show govt’s commitment to MA63

Free Malaysia Today

East Malaysian states allocated a total of RM12.6 billion for development in Budget 2025 while the special grant was doubled to RM600 million each.   Read More:  https://www.freemalaysiatoday.com/category/nation/2024/12/31/increased-funds-for-sabah-sarawak-show-govts-commitment-to-ma63/   Laporan Lanjut:  https://www.freemalaysiatoday.com/category/bahasa/tempatan/2024/12/31/lebih-banyak-dana-bagi-sabah-sarawak-tunjuk-komitmen-kerajaan-terhadap-ma63/   Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------  Check us out at https://www.freemalaysiatoday.com  Follow FMT on Facebook: https://bit.ly/49JJoo5  Follow FMT on Dailymotion: https://bit.ly/2WGITHM  Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h  Follow FMT on TikTok : https://bit.ly/3uKuQFp  Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX  Follow FMT LinkedIn - https://bit.ly/42YytEb  Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj  Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------  Download FMT News App:  Google Play – http://bit.ly/2YSuV46  App Store – https://apple.co/2HNH7gZ  Huawei AppGallery - https://bit.ly/2D2OpNP   #FMTNews #Putrajaya #Sabah #Sarawak #MA63

Transcript

00:00Analysts say the decision to raise allocations for Sabah and Sarawak

00:05proves that the federal government is committed to fulfill its obligations

00:09under the Malaysia Agreement 1963.

00:12Academy of Sciences Malaysia fellow, Madeline Burma,

00:15said the doubling of special grants to RM600 million in 2025

00:19reflects an improvement in the federal-state funds transfer system.

00:23As both states are lagging behind peninsular Malaysia economically,

00:27Madeline said they need assistance under a system of fiscal equalization for a certain period.

00:34She said there was not only a need for increased budget allocations,

00:37but also for the states to be granted greater fiscal autonomy in terms of revenue generation

00:42and determining expenditure priorities.

00:45Meanwhile, University of Tasmania Professor of Asian Studies James Chin

00:49noted that the special grant is a temporary allocation

00:52until Sabah, Sarawak and the federal government agree on a permanent formula.

00:57Chin noted that funds needed to bridge the development gap

01:00between the two states and peninsular Malaysia

01:02would have to come primarily from the federal government.

01:05The alternative to this, he said,

01:07is to return more of the PETRONAS oil and gas money back to Sabah and Sarawak.

01:12Chin was referring to ongoing negotiations for Sarawak-owned petroleum Sarawak Berhad

01:17to become the state's sole gas aggregator,

01:19which could lead to significant economic benefits for the states.

01:22Natasha Biest, FMT News.

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Transcript

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