KUCHING: Sarawak has the legal right to undergo a financial review every five years through Article 112D of the Federal Constitution, thereby strengthening the state’s position in its financial claims with the Federal Government.

Deputy Minister in the Sarawak Premier’s Department (Law, MA63 and State-Federal Relations) Datuk Sharifah Hasidah Sayeed Aman Ghazali said although there is no express provision in the Federal Constitution granting Sarawak the right to a 40 per cent share of revenue as enjoyed by Sabah, the state is still protected by the mechanism of a mandatory periodic financial review every five years under Article 112D.

She referenced the recent High Court Kota Kinabalu’s decision regarding Sabah’s right, which established the principle that the Federal Government's financial obligations to Sabah and Sarawak are not discretionary, but responsibilities rooted in constitutional provisions.

“This decision affirms that the Federal Government has a financial responsibility towards Sabah and Sarawak. This responsibility is not something that can be delayed or implemented at their discretion.

“Although Sarawak does not have the 40 per cent provision like Sabah, the state’s rights remain guaranteed through Article 112D, which mandates a financial review every five years.

“This review must be conducted transparently, timely, and based on a clear and consistent formula. This principle is crucial to ensuring that Sarawak receives what is rightfully due according to its status within the Federation of Malaysia,” she added.

She was responding to a question from Katibas Assemblyman Lidam Assan during the 19th Sarawak Legislative Assembly (DUN) Sitting on Wednesday.

She added that negotiations regarding the Special Grant between the Sarawak and Federal governments are progressing positively through technical discussions and consultations aimed at finalising a fairer formula that accurately reflects the state's true capabilities and contributions.

In this regard, Datuk Sharifah Hasidah informed that as an interim measure, the Federal Government has agreed to increase the Sarawak Special Grant from RM300 million in 2024 to RM600 million starting in 2025 for a period of five years.

She noted that while the increase is welcomed, the Sarawak Government remains committed to fighting for a final, more transparent, and comprehensive formula that guarantees long-term payment, in line with the state’s rights under the Malaysia Agreement 1963 (MA63) and the Federal Constitution. -UKASnews

Reporter: Gabriel Rommy
Translator: Ryan Lim
Photographer: Ameerul Syafiq