Sarawak: Sarawak has proposed that the special grant allocated to the state under Article 112D of the Federal Constitution be determined based on a percentage of revenue generated by the state, said Sarawak Premier Tan Sri Abang Johari Tun Openg. He emphasized that the state government intends to propose a new formula that ties the grant to Sarawak's total income, particularly tax revenue, with a flexible mechanism reflecting the state's current financial performance.
According to BERNAMA News Agency, Abang Johari suggested, "We propose, for example, that 20 per cent of Sarawak's revenue be returned to the state. If revenue is high, the amount returned will be higher; if revenue is low, the amount will be lower. The figure is flexible so that the federal government can consider it." He noted the present allocation is insufficient, citing the state's efforts to build infrastructure and undertake various development projects independently due to its own revenue base, reducing dependency on federal resources.
He shared these insights with reporters after the handover of keys for the Spektra Permata Houses (RSP) under the Santubong Village Expansion Scheme (SPK). Abang Johari further elaborated that a revenue-based approach to the grant would be more equitable, as the state currently bears the majority of development costs through its financial resources. He stated, "At this time, Sarawak has revenue, so what is wrong with us contributing? At other times, if our revenue drops, the federal government can assist us. This is for the people...the people's interests come first."
On Wednesday, the Ministry of Finance (MOF) announced plans for negotiations with the Sarawak government to review the special grant under Article 112D. The review aims to formulate a new method for calculating the allocation, taking into account the state's needs in covering the cost of services and the federal government's financial position, in compliance with Article 112D of the Federal Constitution. This article mandates that the special grants for Sarawak and Sabah be reviewed every five years.