No specific timeline can be set for resolving the outstanding Malaysia Agreement 1963 (MA63) issues as they involve multiple parties, policy considerations and differing legal interpretations.
Minister in the Premier’s Department (Law, MA63 and State-Federal Relations) Datuk Sharifah Hasidah Sayeed Aman Ghazali said the Sarawak government has nevertheless achieved significant progress in implementing MA63, particularly in the areas of fiscal and administrative autonomy.
Among the major fiscal achievements, she said, was the amendment to the Inland Revenue Board of Malaysia Act 1995, which enables the appointment of Sarawak and Sabah government representatives as permanent members of the Inland Revenue Board (LHDN).
She said the move strengthens the participation of both states in federal taxation matters.
Hasidah also highlighted the increase in interim special grants for Sarawak under Article 112D of the Federal Constitution from RM16 million to RM300 million annually, with the federal government agreeing to further raise the amount to RM600 million beginning 2025.
In terms of administrative autonomy, she said several key powers and recognitions had been transferred to Sarawak.
These include the handover of regulatory authority over Liquefied Petroleum Gas (LPG) to the Sarawak government, as well as the recognition of the Public Works Department (JKR), Drainage and Irrigation Department (DID), and Rural Water Supply Department (JBALB) Sarawak as Technical Departments under Treasury Instruction 182.
“This recognition allows the agencies to implement federal development projects in Sarawak involving projects valued at up to RM50 million,” she said in reply to Tamin assemblyman Christopher Gira Sambang during the DUN sitting today.
Hasidah added that the status of Bintulu Port had also been changed from a federal port to a state port, while environmental regulatory powers, including the management of scheduled waste, had been transferred from the federal government to Sarawak through the Natural Resources and Environment Board (NREB).
Despite the progress achieved, she stressed that the Sarawak government continues to actively pursue negotiations and solutions through existing platforms such as the Malaysia Agreement 1963 Implementation Action Council (MTPMA63).
She said the state government remains focused on core MA63 matters, including state financial rights, administrative autonomy and an increase in parliamentary representation.
To strengthen implementation, Hasidah said Sarawak has enhanced its monitoring mechanisms through a structured system to ensure decisions made during negotiations are followed up with clear action.
She added that coordination between state and federal agencies had also been strengthened to expedite implementation, while a phased approach was being adopted to address more complex issues systematically and effectively.
On the possible full transfer of environmental regulatory powers to Sarawak, Hasidah said it would allow the state to formulate policies, guidelines and regulations better suited to Sarawak’s geographical conditions, biodiversity and socio-economic context.
“It would also enable a more flexible, targeted and practical approach in environmental management, including land development, forest protection and pollution control,” she said.
She added that full regulatory authority would accelerate decision-making, approvals and enforcement processes at the state level, while strengthening environmental monitoring and ensuring Sarawak’s sustainability agenda could be implemented more effectively.
