Issues related to the Malaysia Agreement 1963 (MA63) and the status of Sabah and Sarawak as regions will be referred to the Malay rulers before they are brought to the cabinet for consideration, according to Prime Minister Anwar Ibrahim. 

He, however, assured that the government has recognised Sabah and Sarawak as regions. 

“The technical term stated in the MA63 is that (the country) consists of federated Malay states, Sabah and Sarawak. But it is clear we have three entities when comes to implementation. 

“Whether they are called states or regions, the position and attitude taken by the federal government remain unchanged. However, the amendment of any of these terms should be referred to the Malay rulers,” he said.

“The process can be carried out but I don’t want to speak about it because it does not affect their status, given that the Federal Constitution had been amended,” he told a press conference after attending an MA63 Implementation Action Council meeting in Kuching today. 

“I have yet to refer the matter to the Malay rulers but I had a preliminary discussion with the Yang di-Pertuan Agong,” added Anwar. 

Earlier this week, Sarawak Premier Abang Johari Openg reportedly said that change in the status of the two states as regions was still at the proposal stage.

This came after Deputy Prime Minister Ahmad Zahid Hamidi reportedly said at the recently concluded Umno general assembly that Sabah and Sarawak have been accorded the status of regions and are no longer regarded as states within Malaysia.

Zahid, however, did not say when this came into effect.

Political will

Anwar also reiterated his determination to fulfil MA63.

To a question, he said there were only a few outstanding issues on the MA63 and his cabinet has no problem resolving them.

"The outstanding issues we have are very small. Preliminary agreement and method (of implementation) have been arrived at and (Second) Deputy Prime Minister Fadillah Yusof, who chairs the MA63 technical committee, is always in touch with Abang Johari and Sabah Chief Minister Hajiji Noor.

"To me, this is not an issue. Look, we have just resolved seven or eight issues in a short time and we just took over the government," he said.

"This is about political will," he said.

On another development, Anwar also announced that the special grant under Article 112 of the Federal Constitution for Sabah and Sarawak will be increased to RM260 million and RM300 million respectively.

He also said bonus paid to civil servants under all state government and agencies would be tax-exempted.

He noted that this has been the practice for civil servants under the federal government and agencies.

He also announced the appointment of Sarawak financial secretary Wan Lizozman Wan Omar as Sarawak’s representative on the Inland Revenue Board (LHDN), effective today.

"This request has been made for a long time and I have said there shouldn't be any problem.

"The state financial secretary has met the conditions, namely professionalism and experience that can help the LHDN," he said.

Meanwhile, Anwar also instructed that state lands surrendered to the federal government for educational and health purposes several decades ago should be given back to the respective state governments, if the lands remain undeveloped until now.

"Some of these lands were taken by the federal government via state health and education departments at a very low cost for public interest in the 1970s and 1980s. But some had remained undeveloped as the lands are not suitable or due to lack of funding (to develop them).

"So, I am giving three months for a decision to be made (by the relevant parties) for these lands to be returned to the respective state governments if there is no plan or no allocation to develop them," added Anwar.

"It is either that the lands be given back to the state governments at the original price or the price tag be set by the Finance Ministry," he said.

"I think this is an appropriate (move)," he said.