Prime Minister Datuk Seri Anwar Ibrahim said the government has made significant progress in addressing longstanding issues under the Malaysia Agreement 1963 (MA63) concerning Sabah.
Through the Malaysia Agreement 1963 Implementation Action Council Technical Committee (JKMTPMA63), chaired by Deputy Prime Minister Datuk Seri Fadillah Yusof, a total of 13 claims have been resolved.
Among the key agreements, regulatory authority over electricity supply and Sabah Electricity Sdn Bhd (SESB) has been transferred to the Sabah Government, with the Federal Government continuing to allocate RM1.2 billion to ensure an uninterrupted supply.
The government has also recognised the Sabah Public Works Department, Department of Irrigation and Drainage, and the Sabah Water Department as Technical Departments under Treasury Instruction 182. These departments can now approve Federal projects worth up to RM50 million, enhancing state-level decision-making.
In addition, amendments to the Inland Revenue Board of Malaysia Act 1995 now allow representatives from Sabah and Sarawak to serve as permanent members of the IRB. Sabah is also authorised to impose a sales tax on petroleum products, estimated to generate RM2 billion annually.
Anwar highlighted the growth of Sabah’s oil and gas sector, noting that the Commercial Collaboration Agreement signed in December 2021 has enabled Sabah-based contractors to secure projects worth RM2 billion in 2024.
The prime minister reiterated that the government remains committed to fulfilling all Federal obligations under the Federal Constitution, increasing the special grant for Sabah, and raising annual operating and development allocations to support the state’s well-being.
