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Sarawak seeks 5%-10% of federal revenue as a special grant

Sarawak Premier Abang Johari Openg said the state wants a 5%-10% share of national revenue, contingent on a formula tied to overall income.

At a special PBB gathering, Sarawak Premier Abang Johari Openg outlined a proposal for the state to receive a special grant representing between 5% and 10% of Malaysia's federal revenue, with the share adjusting according to the size of the national coffers. He said Prime Minister Anwar Ibrahim had agreed in principle when the topic was discussed by the Malaysia Agreement 1963 committee. The Premier emphasized that the formula would be flexible, increasing the share when revenue rises and decreasing it when revenue falls.

He described the request as reasonable, based on the federal government's affordability and capacity. The proposal will be taken to the federal finance ministry for further negotiation. The federal government previously allocated RM600 million each to Sabah and Sarawak, following a prior increase from RM300 million.

Why it matters

The grant could significantly boost Sarawak's budget, affecting regional development and federal-state fiscal relations.

In this story

Sarawakfederal revenuespecial grantrevenue sharingAnwar IbrahimAbang Johari OpengMalaysia Agreement 1963PBBRM600 million
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