“After years of discussion, Sarawak was only given RM16 million initially,” Anwar told a press conference in Kuching.
“However, under Article 112D, it is stated the amount given should be based on the country’s economy.
“After discussing with Sarawak premier Abang Johari Openg, I have agreed to increase it to RM300 million.”
Anwar’s announcement came after he chaired a meeting on the Malaysia Agreement 1963 (MA63) in Kuching.
The meeting was attended by Sarawak premier Abang Johari Openg and Sabah chief minister Hajiji Noor.
Sabah and Sarawak are entitled to special grants under Article 112D of the constitution.
Earlier this month, Anwar said the special grants would be reviewed every five years so a more “reasonable” sum could be allocated.
He also said the government had decided to allow Sabah and Sarawak to decide on the implementation of any infrastructure projects under RM50 million in their states.
This is because while Sabah and Sarawak have their own public works departments (JKR), many decisions had to be finalised in Putrajaya, resulting in delays in the implementation of some projects.
Anwar also announced that the Sarawak state financial secretary has been appointed to the Inland Revenue Board (LHDN) as a director effective immediately.
“The only condition I had for the appointment is the individual must be a professional and have proper qualifications,” he said.
In October last year, Abang Johari had said Sarawak will nominate its state financial secretary as its representative to sit on the LHDN board.
This came after the federal Cabinet approved a proposed amendment to the Inland Revenue Act 1995 to include a representative each from Sabah and Sarawak as members of the LHDN board of directors.
Abang Johari said having a representative from Sarawak would give access to information regarding the nation’s revenue, including Sarawak’s contribution.
He said a seat on the LHDN board would also allow Sarawak to come up with a formula for discussion with Putrajaya on the amount of the special grant for the state.
Under the Inter-Governmental Committee (IGC) report, in line with the Malaysia Agreement 1963 (MA63), there is also a provision stating that Sarawak must have representation in the LHDN.
RM1bil to upgrade CIQS complex
Anwar, who is also the finance minister, said he has given preliminary approval for an additional allocation of RM1 billion to upgrade the infrastructure and increase the capability of the customs, immigration, quarantine and security (CIQS) complex at the borders of both states.
This was following his discussion with Indonesian President Joko Widodo regarding the relocation of Indonesia’s capital to Nusantara, Kalimantan which is also in Borneo.
“We have decided to give the additional allocation for the CIQS to improve security and increase its capability, as well as for other basic infrastructure such as roads, as we don’t want to be seen as too obsolete,” he said.
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