MA63 At 63: What Has Been Delivered And What’s Still Pending?

Malaysia marks its 63rd Malaysia Day on Sept 16, and with the anniversary comes another familiar number in the country’s MA63 conversation: 29.

That is the number of key matters being tracked under the implementation of the Malaysia Agreement 1963, or MA63.

Of these, 13 have been categorised as resolved, five have reached interim or partial resolutions while 11 remain under discussion or monitoring.

So, more than six decades after MA63 was signed, what has actually been delivered and what is still being negotiated?

Here is a look at where the key issues stand.

What Has Been Delivered?

1. Sabah And Sarawak’s Technical Departments Recognised

Sabah and Sarawak’s technical departments have gained recognition under federal Treasury directives.

This includes departments responsible for public works, irrigation and drainage as well as rural water supply.

The recognition gives the state agencies a more formal role in managing technical and development-related matters.

2. Gas And Electricity Regulation Devolved

Regulatory authority over gas distribution and electricity supply has been devolved to the Sabah and Sarawak governments.

The move represents one of the more significant transfers of regulatory authority to the two states.

3. Bintulu Port Returned To Sarawak

Administrative control over Bintulu Port has been returned to the Sarawak government.

The port had previously been placed under federal administration, making its return an important item in Sarawak’s MA63 implementation agenda.

4. Sabah And Sarawak Get Representation In LHDN

Sabah and Sarawak have also secured representation in the Inland Revenue Board, or LHDN.

The move gives the state governments a role in federal tax administration.

5. Changes To High Court Judicial Appointments

The process for appointing High Court judges for Sabah and Sarawak has also been revised.

The changes include consultation with the respective Chief Minister and the relevant representative of the state in the Conference of Rulers.

The arrangement relates to the Borneo High Court and is intended to provide greater state involvement in the appointment process.

6. Labour Ordinances Amended

Changes have also been made to the labour ordinances governing Sabah and Sarawak.

The amendments address state authority over labour matters and are part of the wider effort to restore or strengthen state powers in areas covered by the MA63 framework.

7. Some Education Safeguards Implemented

Several education-related safeguards have also been implemented.

These include the continuation of English as a medium for Science and Mathematics under the Dual Language Programme, as well as the retention of Year Six examinations for core subjects including English, Science and Mathematics in Sabah and Sarawak.

However, broader education-related matters remain under discussion.

What Has Been Partially Resolved?

Not everything can be placed neatly into either “done” or “not done”.

Five matters have been categorised as interim or partial resolutions.

8. Expansion Of State Public Service Positions

The expansion of state public service positions under Article 112 of the Federal Constitution has seen progress but has not been fully closed.

This is linked to the wider issue of Borneonisation, or increasing the participation of Sabahans and Sarawakians in the federal public service in their respective states.

9. Borneonisation Of The Federal Public Service

The broader Borneonisation issue remains partly resolved.

While steps have been taken towards increasing local representation in the federal civil service, wider targets and implementation remain part of the ongoing discussions.

10. Health Matters

Health-related responsibilities between the federal and state governments have also seen partial progress.

Issues involving staffing, responsibilities and administration continue to require further discussions.

11. Education Beyond Existing Safeguards

While some education safeguards have been implemented, broader questions over education administration, staffing and autonomy remain unresolved.

This places the issue in the interim category rather than among matters considered completely settled.

12. Other Administrative Matters

Another matter has been categorised as an interim resolution as technical and administrative arrangements continue to be worked out between the federal and state governments.

What Has Not Been Fully Resolved?

Eleven matters remain under discussion or monitoring.

These are among the more politically and financially significant issues surrounding MA63.

13. Parliamentary Representation

One of the biggest outstanding questions is the representation of Sabah and Sarawak in Parliament.

There have been calls for the two states to collectively hold a 35 per cent share of parliamentary seats.

Any increase would require constitutional changes, including amendments involving Article 46, as well as going through the relevant electoral processes.

For now, the issue remains unresolved.

14. Oil And Gas Revenue

Petroleum revenue remains another longstanding point of contention.

This includes questions surrounding oil royalties, petroleum cash payments and broader revenue-sharing arrangements.

Claims involving Sabah’s and Sarawak’s share of revenue from resources continue to feature in discussions over MA63.

15. Special Grants And Financial Arrangements

Financial provisions involving Sabah and Sarawak remain another outstanding area.

This includes questions surrounding special grants, federal allocations and the interpretation or implementation of certain financial provisions connected to the constitutional arrangements.

16. Export Duties And State Revenue

Questions over certain export duties, including those involving timber and forest products, also remain part of the wider financial discussion.

The issue concerns the extent to which revenue arrangements should benefit the states under the constitutional framework.

17. Border Development

Border development involving Sabah and Sarawak and Indonesia remains under discussion.

The issue has taken on added significance as economic and infrastructure development accelerates on both sides of the border, particularly in Kalimantan.

18. Further Education Autonomy

Beyond the education matters that have already received interim or full resolutions, other questions concerning administrative control, staffing and education policy remain outstanding.

19. Further Health Autonomy

Health is similarly not completely settled.

Beyond the areas where progress has been made, questions involving staffing, funding and the division of responsibilities between federal and state authorities remain.

20. Wider Federal Public Service Representation

The broader question of ensuring sufficient Sabah and Sarawak representation within the federal public service remains part of the ongoing MA63 process.

While Borneonisation has seen progress, the wider issue has not been completely closed.

21. Matters Referred To Higher Levels

Several other issues remain subject to higher-level consideration after being escalated through the federal-state negotiation process.

These matters demonstrate that some MA63 questions cannot be resolved solely at the technical committee level and require political or Cabinet-level decisions.

So, What’s The Score?

The latest tally gives a fairly simple picture:

13 resolved.

Five interim or partially resolved.

11 still under discussion or monitoring.

That means 18 of the 29 tracked matters have at least reached a resolution or partial-resolution stage, while 11 remain outstanding.

However, the numbers should not be treated as a permanent scorecard.

MA63 implementation is an ongoing process and matters can move between categories as agreements are reached and implementation takes place.

Different announcements can therefore produce different figures depending on when the count was made and how related sub-items are grouped.

63 Years On, The Work Continues

MA63 was signed on July 9, 1963, as part of the process that led to the formation of Malaysia on Sept 16 that year.

More than six decades later, its implementation remains a live issue.

Some of the agreement’s related matters have resulted in concrete changes, from utility regulation and Bintulu Port to technical departments, labour laws and judicial appointments.

Others remain tied to bigger questions involving parliamentary representation, petroleum revenue, finance, education, health and the federal-state division of powers.

So as Malaysia celebrates 63 years, MA63 provides a reminder that the formation of the federation may have happened in 1963, but the process of defining how that federation works has continued long after the signing ceremony.

And for the 29 matters currently being tracked, the question is no longer simply what was agreed in 1963.

It is what has been delivered since, and what is still waiting to be settled.

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