KUCHING: Sarawak is open to receiving a higher special grant under Article 112D of the Federal Constitution, but any increase must take into account the Federal Government’s financial capacity, says Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
The Premier said Sarawak welcomed additional federal allocations but recognised that Putrajaya must balance its own fiscal commitments.
“We are also sympathetic to them. If they have the money, why not share? But if the financial situation does not permit it, we also understand,” he told reporters after attending the launch of Western Digital’s latest manufacturing facility at Sama Jaya High Tech Park here today.
Abang Johari was responding to Prime Minister Datuk Seri Anwar Ibrahim’s recent remarks in Parliament that Sarawak should receive an interim special grant arrangement similar to Sabah’s RM1.5 billion allocation while negotiations on the state’s entitlement under Article 112D continue. Sarawak currently receives an interim special grant of RM600 million annually from the Federal Government.
He clarified that there had been no detailed discussions on the matter, although Anwar had briefly mentioned the possibility of increasing the allocation during a meeting in Bintulu.
“He said he would look into increasing the allocation. I simply said thank you because no figure was mentioned,” he said.
The Premier said any further negotiations would likely be handled by the Ministry of Finance, stressing that Sarawak’s approach had always been one of cooperation and mutual understanding.
“On behalf of Sarawak, whatever is given, we welcome. If you can afford it, give and we share. If you cannot afford it, we can tolerate,” he said.
Abang Johari added that, beyond direct allocations, the Federal Government could support Sarawak’s economic transformation through fiscal incentives, particularly for emerging industries and clean energy technologies.
He said he had proposed tax incentives for industries adopting renewable energy and advanced technologies, including hydrogen powered transportation.
“I have asked for incentives for new industries, including the use of hydrogen and vehicles powered by hydrogen,” he said.
He suggested that taxes on hydrogen fuel and hydrogen powered transport systems, including Sarawak’s Autonomous Rapid Transit (ART), could be reduced to encourage wider adoption of green technologies.
The Premier also cited Western Digital’s latest investment in Sarawak as an example of how incentives and access to renewable energy could attract high value industries.
Describing data as the “new oil” of the future economy, he said Sarawak’s long standing partnership with Western Digital demonstrated the state’s commitment to supporting strategic industries through collaboration and shared growth.
“During difficult times, we shared together. During the COVID-19 pandemic, we shared together. That is the spirit of partnership, and Sarawak has always been like that,” he said.
