By Sarawak Public Communications Unit
The Malaysia Agreement 1963 (MA63) is no longer merely a historical document commemorated as Malaysia Day approaches. More than six decades after the formation of Malaysia, the implementation of the agreement remains a crucial agenda item in strengthening relations between the Federal Government and the states of Sabah and Sarawak.
Caption: MTPMA63 meeting highlighted several key issues receiving serious attention. These include the review of the Special Grant for Sabah under Article 112D of the Federal Constitution, the strengthening of border security, the creation of additional posts and the "Borneonisation" of the federal civil service, as well as the increase in parliamentary seats for Sabah and Sarawak.
Recent developments indicate that the implementation of MA63 is shifting from mere debates over rights and demands to a more structured process involving negotiations, policy decisions, and on-the-ground execution.
This was evident when Prime Minister Anwar Ibrahim chaired the Malaysia Agreement 1963 Implementation Action Council (MTPMA63) meeting at the Sabah International Convention Centre (SICC) in Kota Kinabalu on September 11, 2026.
The meeting was attended by Sabah Chief Minister Hajiji Noor and Sarawak Premier Abang Johari Tun Openg, alongside leadership from both the federal and state governments.
Furthermore, the day prior to the meeting, the prime minister and the two state leaders attended a dinner hosted by the Sabah state government in conjunction with the MTPMA63 proceedings in Kota Kinabalu. Such informal gatherings demonstrate that the MA63 implementation process relies not only on formal negotiation tables but also on strong political ties and cooperation among the Federal, Sabah, and Sarawak leadership.
Significantly, this MTPMA63 meeting highlighted several key issues receiving serious attention. These include the review of the Special Grant for Sabah under Article 112D of the Federal Constitution, the strengthening of border security, the creation of additional posts and the "Borneonisation" of the federal civil service, as well as the increase in parliamentary seats for Sabah and Sarawak.
Implementation yielding results
When assessing progress regarding MA63, the public should view developments based on what has already been implemented, rather than focusing solely on what remains unfinished. As of June 2026, 13 out of 29 matters under the official MA63 negotiation platform have been fully resolved, while five others have reached partial or interim settlements. Eleven matters remain under monitoring and discussion. Issues still requiring attention include staffing, health, education, and the "Borneonisation" of the Federal civil service.
One of the most significant achievements for Sarawak was the handover of the status and regulatory authority of Bintulu Port to the Sarawak Government on July 21.
Bintulu Port is not merely a strategic asset; it holds a pivotal position in the economies of both Sarawak and Malaysia, particularly within the energy, logistics, industrial, and trade sectors. This handover demonstrates how the implementation of MA63 translates into recognition of Sarawak’s role and status as a founding partner of Malaysia.
Beyond administrative matters, Bintulu Port has the potential to be developed into an industrial, logistics, and green energy hub, benefiting not only Sarawak but also the national economy and the Asia-Pacific region.
In this context, MA63 should be viewed as an instrument to strengthen the federation, rather than an agenda that drives regional separation.
Sabah and the Special Grant issue
For Sabah, one of the major developments this year has been the increase in the interim Special Grant from RM600 million to RM1.5 billion.
The Federal Government had previously explained that this increase was a temporary measure while the implementation method for the claim regarding 40 per cent of Sabah’s revenue is finalized through negotiations.
However, developments on September 11 indicated that this issue remains a priority for the Sabah State Government.
Sabah Chief Minister Datuk Seri Hajiji Noor stated that the state government is seeking due consideration from the Federal Government to ensure the issue of the 40 per cent revenue payment to Sabah is resolved and expedited. At the same time, the Prime Minister confirmed that the interim payment for Sabah has been increased to RM1.5 billion starting this year, with disbursement expected in late October or early November following the parliamentary session.
This demonstrates that the implementation of MA63 requires a dual approach: fulfilling matters already agreed upon while continuing negotiations on issues where a consensus has yet to be reached.
Borneanisation and human capital development
Another equally important matter is the implementation of Borneanisation within the civil service.
For Sabah and Sarawak, Borneanisation is not merely a question of the number of local officers filling Federal posts. It concerns the capacity of the local community to lead institutions, understand local realities, and participate in decision-making processes that directly impact the lives of the people.
Recent developments indicate that Sarawak has surpassed the target of filling 80 percent of key Federal Civil Service positions with Sarawakians, achieving a rate of 87.5 percent. Meanwhile, Sabah is approaching the 70 percent mark.
At the same time, education and healthcare issues remain key priorities, as the true success of the Malaysia Agreement 1963 (MA63) must ultimately be felt by the people.
In the health sector, for instance, the federal government has approved RM1.57 billion under the First Rolling Plan of the 13th Malaysia Plan for 53 health projects in Sabah, comprising 46 ongoing projects and seven new ones.
Investments of this nature are crucial because the development gap cannot be measured solely by economic figures; it is also linked to the people's access to hospitals, clinics, schools, electricity, clean water, roads, and quality basic services.
The voices of Sabah and Sarawak must continue to be heard.
Recent developments have also introduced another significant dimension: the federal government has agreed in principle to increase the ratio of parliamentary representation for Sabah and Sarawak.
According to the prime minister, this decision requires a constitutional amendment to facilitate the increase in representation, in line with the spirit of MA63.
This matter is significant because the formation of Malaysia in 1963 was underpinned by a unique background regarding representation and federal structure. Any effort to strengthen the standing of Sabah and Sarawak in Parliament must be executed through a meticulous constitutional process, yet it should not be left without a clear direction.
Sarawak also awaits further developments.
For Sarawak, the issue of the interim special grant is another matter requiring careful deliberation.
Following the MA63 Implementation Action Council (MTPMA63) meeting, Anwar announced that further discussions with the premier regarding interim measures for the state would continue over the coming days.
The Sarawak government has also proposed the creation of a clearer formula that takes into account the nation's financial position, current capabilities, and the minimum and maximum rates that could be considered. The Prime Minister has agreed for the Ministry of Finance and the Sarawak Ministry of Finance to discuss the proposed formula.This development demonstrates that the MA63 process is not a one-off affair; it requires continuous scrutiny regarding financial, legal, administrative, and policy aspects.
MA63 as a bridge, not a wall
In reality, unresolved issues remain. Differences of opinion are also a natural part of the negotiation process between the federal and state governments of Sarawak and Sabah.
However, what matters most is how these differences are managed.
Deputy Prime Minister Fadillah Yusof, who also chairs the MTPMA63 Technical Committee, emphasized that discussions must continue in a spirit of openness, mutual respect, and a shared commitment to finding common ground.
Such an approach is crucial because MA63 is not a contest of winners and losers.
Instead, the successful implementation of MA63 should be measured by the extent to which agreed-upon rights translate into better administration, more balanced development, and a more prosperous life for the people.
The recent meeting in Kota Kinabalu between Anwar, Abang Johari and Hajiji, also underscored the need to further strengthen relations among the three parties. Political consensus, open communication, and trust among the leadership serve as vital foundations for resolving outstanding matters.
As we approach the Malaysia Day celebration on September 16, these developments convey a clear message.
Malaysia was built upon a foundation of mutual understanding and agreement among regions possessing distinct histories, identities, and needs. Thus, the implementation of MA63 is not merely about addressing past demands; it is an effort to build a fairer future for Malaysia.
What has been agreed upon must be implemented. What remains unresolved must continue to be negotiated. And whatever is ultimately achieved must benefit the people. If this principle continues to serve as the foundation, the MA63 will not merely remain the document that shaped Malaysia in 1963; it will also act as a bridge connecting the aspirations of Sabah, Sarawak, and the peninsula in building a stronger, more mature, and balanced Malaysia.
That is the true spirit of a federation: it is not simply about sharing a country, but about sharing responsibilities, opportunities, and the future.
