Putrajaya will stop payments for the salaries and allowances of politically appointed community leaders and tuai rumah (longhouse chiefs) in Sarawak.
Works Minister Baru Bian said, in the past, 70 percent of their income would come from the federal government.
However, he said as of next year, only democratically elected tuai rumah will receive funds from Putrajaya.
"Current community leaders like tuai rumah who were not democratically elected by their longhouse residents but were unilaterally and politically appointed by politicians and Gabung Parti Sarawak (GPS) politicians against the wishes of the longhouse residents, cannot receive the 70 percent portion from the Pakatan Harapan federal government allocation.
"I want to make this crystal clear. Longhouse residents may make statutory declarations to report to the ministry if the GPS government continues using federal funds to pay politically appointed tuai rumah," Baru said in a statement today.
He said the government has allocated RM35 million for the upkeep of democratically elected tuai rumah.