KOTA KINABALU, Sept 11 2026: The federal government and the Sarawak government have agreed to introduce a new, clearer, and mutually beneficial (win-win) formula under Article 112D of the Federal Constitution, taking into account Sarawak's interests and the nation's financial position.
Premier Abang Johari Openg,who welcomed the agreement, described the approach as a practical step toward finding a solution that benefits both Sarawak and the federal government.
“I express my gratitude for the agreement to determine a formula that will be a win-win for us and the Federation.
“If the country is doing well, the federation is naturally doing well. If not, we accept the reality of the situation to ensure the nation's financial stability,” he said at a press conference following the Malaysia Agreement 1963 Implementation Action Council (MTPMA63) meeting, chaired by Prime Minister Anwar Ibrahim at the Sabah International Convention Centre (SICC) today.
(Article 112D of the Federal Constitution provides for a yearly review of the special grants to Sarawak and Sabah by the federal government)
The premier supported the prime minister's stance that matters related to MA63 should be viewed as national issues, taking into account constitutional provisions and the integrity of Malaysia.
“One point I wish to raise here is my support for the Prime Minister's approach that the MA63 issue is a national matter.
“We want to align what is enshrined in the Constitution with the integrity of Malaysia as we continue our efforts to develop the nation as a whole.
“So, I feel this is a rather practical approach,” he said.
Meanwhile, Anwar stated that Sarawak had put forward views regarding the need to introduce a clearer formula, taking into consideration the nation's financial position, current capabilities, and the minimum and maximum rates that could be considered.
“Sarawak also presented views on the formula that should be introduced to ensure clarity. “The formula takes into account the nation’s financial position, capacity, and the minimum and maximum limits that can be considered.
“I agree with this and have asked the Ministry of Finance and the Sarawak Ministry of Finance to discuss introducing such a formula,” he said.
He emphasized that this approach is crucial to ensure that any allocations or considerations for Sabah and Sarawak are not misconstrued as special treatment, but rather understood as part of the national policy and commitment regarding the formation and development of Malaysia.
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