KOTA KINABALU: The Malaysia Agreement 1963 (MA63) should not continue to be used as a political tool to attack Prime Minister Datuk Seri Anwar Ibrahim, given that substantial progress has been made in addressing the demands of Sabah and Sarawak.
Minister in the Prime Minister’s Office (Sabah and Sarawak), Datuk Mustapha Sakmud stated that the MADANI Government has resolved 12 out of a total of 16 MA63 matters that were finalised as of October 2026.
According to him, this achievement demonstrates the Anwar administration’s commitment to continuing negotiations and resolving outstanding demands that have been pending since several previous administrations.
“I respect the right of any party to criticise the MADANI Government. We celebrate democracy and continue to listen to the aspirations of the people.
“However, criticism must be based on facts, not on malicious assumptions that suggest there has been no effort or progress in implementing MA63,” he said in a statement on Thursday.
Musapha noted that based on monitoring records from the Malaysia Agreement 1963 Implementation Action Council (MTPMA63), 29 matters have been monitored since negotiations began across several administrations in 2016.
Of that total, he said, 16 matters have been fully resolved, three have been resolved on an interim or partial basis, while 10 others remain under negotiation.
The previous administration completed four matters, whereas the MADANI Government accomplished 12 matters for the period 2023 to 2026.
“This means 75 percent of the total 16 matters that have been finalized were achieved under the MADANI Government administration,” he stated.
Among the listed achievements are the transfer of electrical regulatory authority to Sabah, the appointment of permanent representatives from Sabah and Sarawak to the Inland Revenue Board, the handover of Bintulu Port to Sarawak, and the takeover of MASWings, now known as AirBorneo.
However, Mustapha acknowledged that there remain important claims that have not been finalized, particularly Sabah’s entitlement to 40 percent of the net federal revenue derived from the state.
Mustapha emphasised that the increase in interim special grants to Sabah up to RM1.5 billion by 2026 does not signify that the demand for 40 percent of state revenue has been resolved.
According to him, the special grants increased from RM125.6 million in 2022 to RM300 million in 2023, RM306 million in 2024, and RM600 million in 2025.
This amount subsequently rose to RM1.5 billion in 2026, with the same rate announced for 2027.
“The interim special grant of RM1.5 billion is not a final resolution of Sabah’s 40 percent revenue claim under Articles 112C and 112D of the Federal Constitution.
“This represents Sabah’s financial entitlement, not political charity from any party,” he stated.
He noted that negotiations between the Federal Government and the Sabah State Government continue to determine the implementation mechanism, actual amount, and payment timeline.
These negotiations involve the Chief Secretary to the Treasury, the Secretary of the Sabah State Government, the Sabah Finance Minister, and technical teams from both parties.
Mustapha acknowledged that increased budget allocations and the resolution of MA63 matters must translate into development that genuinely benefits the people.
He stated that the government understands the concerns of Sabah’s residents who continue to face issues with road infrastructure, water supply, electricity, and delays in infrastructure project implementation, including the Pan-Borneo Highway.
“Budget increases must be translated into faster and more effective implementation.
“We cannot be satisfied with billion-ringgit announcements if the results have not yet been truly felt by the people,” he said.
He emphasized that the people have the right to continue demanding the resolution of the 40 percent revenue-sharing claim for Sabah and remaining MA63 matters, while also addressing shortcomings in development project execution.
However, he noted that the progress achieved in MA63 negotiations throughout the MADANI Government administration should also be evaluated based on records and facts.
“MA63 should not be used as political capital to portray the MADANI Government as failing to implement MA63 demands when the best resolution record to date has only been achieved under the Prime Minister’s administration,” he said.
