World · Malaysia Bureau
Sarawak seeks special federal revenue-sharing grant of 5-10%
Sarawak's chief minister has proposed a new mechanism for distributing national revenue to the state, arguing for a flexible approach that adjusts to federal fiscal conditions. The proposal aims to establish a dedicated grant linked to the federal government's economic performance.
LSN Malaysia ·

Sarawak Chief Minister Abang Johari Openg has put forward a proposal for the state to receive between 5% and 10% of federal revenue as a special grant, contingent on Malaysia's overall fiscal health. The proposal seeks to institutionalise revenue-sharing through a transparent formula rather than ad-hoc allocations. Abang Johari framed the mechanism as a partnership approach between the federal and state governments, stating that resource distribution should expand during periods of economic strength and contract during leaner times. "When there is more, share more; when it is lower, share less," the chief minister said, describing the principle underlying his proposal. The formula-based approach would provide Sarawak with greater predictability in its federal allocations while aligning the state's interests with broader national economic performance. The proposal represents Sarawak's bid to secure more sustainable financing for state development initiatives, reflecting ongoing negotiations between the state and federal authorities over resource distribution mechanisms.