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Sarawak proposes sharing 5-10% of federal revenue as special grant

Sarawak Premier Abang Johari Openg says Prime Minister Anwar Ibrahim has indicated broad agreement with a proposal to share a portion of federal revenue with the state as a special grant, discussed within the MA63 committee framework.

LSN Malaysia · 13 September 2026

Sarawak proposes sharing 5-10% of federal revenue as special grant

Sarawak's Premier Abang Johari Openg has signalled progress in negotiations with the federal government over a proposed special grant arrangement that would see the state receive between 5% and 10% of federal revenue. The proposal was raised during discussions within the MA63 committee, which oversees implementation of the Malaysia Agreement 1963. According to Abang Johari, Prime Minister Anwar Ibrahim responded positively to the proposal when it was tabled, indicating the federal government's openness to the arrangement. The MA63 committee, established to address issues arising from the 1963 agreement that brought Sarawak into Malaysia, has become a key forum for negotiating state-federal relations and resource-sharing arrangements. The outcome of these discussions could have significant implications for Sarawak's fiscal autonomy and development funding. Details regarding the timeline for implementation or the final percentage to be allocated remain to be confirmed through further deliberations between Sarawak and the federal government.