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Formula for special grants for Sabah to be known on July 18 next year

Publish date: Wed, 29 Nov 2023, 01:37 PM

KOTA KINABALU: The formula on special allocations to Sabah will be known on July 18 next year, said assistant minister to Chief Minister Datuk Nizam Titingan.

"The state government's stance remains the same, which is that the amount of special grant claimed is based on the formula stipulated under Section 2(1), Part IV, Tenth Schedule, of the Federal Constitution, equivalent to 40 per cent of the net amount derived by the Federal Government from the state of Sabah.

"For the reassessment of special grants under Article 112D of the Federal Constitution, the formula for it needs to be resolved within a year, which is before July 18, 2024. Within this one-year period, a decision must be made," he said during the state assembly sitting.

As for the 40 per cent, he said the federal government is required to make payments after the federal government has a strong financial position and thus the reassessment under 112D is no longer necessary.

Nizam was answering questions by Datuk Dr Yusof Yacob (Gagasan-Sindumin) on the status of Malaysia Agreement 1963 (MA63), what are the agreed and pending matters as well as its timeline.

He added among the matters that have been completed and implemented are the amendment to the Federal Constitution Article 1(2) and Article 160(2); Empowerment regarding Licensing and Capture of Deep-Sea Fish by the State Government of Sabah;transfer of authority over the Administration of Sipadan Island and Ligitan Island to the State Government of Sabah.

Others are the transfer of control authority for gas; recognition of the Sabah State Public Works Department (JKR) as a Technical Department under AP182; appointment of a representative from the Sabah State Government as a member of the Inland Revenue Board (LHDN); and transfer of authority for the supervision of electricity supply to the State Government of Sabah on Jan 3, 2024.

He added ongoing matters being discussed are land disposal in Sabah and Sarawak, legality and technical aspects autonomy in health and education, increasing more elected representatives from Sabah and Sarawak in the Dewan Rakyat among others.

Nizam said Sabah also sought further rights in labour, environmental legislation, appointment of judges and more authorities in courts, royalties on oil, gas and mineral, Territorial Sea Act, continental shelves, public services.

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