KUALA LUMPUR, Oct 13 — Efforts to uphold the consensus reached by previous leaders in the Malaysia Agreement 1963 (MA63) will continue under the Unity Government with an allocation totalling RM12.4 billion set aside for Sabah and Sarawak under the Malaysia MADANI Budget 2024.
Prime Minister Datuk Seri Anwar Ibrahim when tabling the national budget at the Dewan Rakyat today, said RM6.6 billion was allocated to Sabah and RM5.8 billion to Sarawak next year, an increase from RM6.5 billion and RM5.6 billion respectively from this year’s budget.
“In the spirit of MA63, the federal government has also delegated the power to approve development projects below RM50 million to technical agencies in both states to enhance the effectiveness of these projects,” he said.
Additionally, the Unity Government has increased the Special Interim Grants for Sarawak and Sabah to RM300 million, compared to RM16 million for Sarawak and RM125.6 million for Sabah previously.
The last review of the grants for Sabah and Sarawak was carried out in 1968 and 2022, respectively.
Anwar said the Inland Revenue Board of Malaysia (Amendment) Bill 2023 has also been passed via a majority voice vote in the Dewan Rakyat last Wednesday which provides for the appointment of a representative of the Sabah state government, known as the Chief Minister of Sabah, and a representative of the Sarawak state government, known as the Premier of Sarawak, in accordance with the recommendations of the Inter-Government Committee (IGC) 1963.
“The federal and the Sabah governments have also reached an agreement on the transfer of regulatory power over the electricity supply, which will come into effect on Jan 3, 2024.
“Although the regulatory power is transferred to the Sabah government, the federal government will continue to support the state government in strengthening the electricity industry in Sabah by providing subsidies to Sabah Electricity Sdn Bhd (SESB) until the SESB Transformation Plan is successfully implemented by 2030,” he said.
To ensure stability and reduce disruptions in the electricity supply, especially in eastern Sabah, the Prime Minister also announced that the federal government will support the implementation of hybrid solar power generation and the construction of an electricity transmission network in southern Sabah.
“The federal government is also in negotiations to hand over Bintulu Port and the operation of Rural Air Services (RAS) to the state government,” he added.
