Willie Mongin says RM1.5B interim grant is not a full settlement—Sarawak needs a permanent formula

KUCHING : Sarawak’s RM1.5-billion interim Special Grant must not be mistaken for a full settlement of the state’s financial rights.

Puncak Borneo Member of Parliament, Datuk Willie Mongin said the fderal government and Sarawak Government must conclude negotiations on a permanent, predictable and mutually agreed grant formula, stressing that greater fiscal certainty was essential to the state’s long-term development and the next phase of Malaysia Agreement 1963 (MA63) implementation.

In a media statement on Budget 2027 issued on Friday (Oct. 9), Willie welcomed Prime Minister Datuk Seri Anwar Ibrahim’s confirmation that the latest interim rate for the Special Grant to Sabah and Sarawak amounted to RM1.5 billion, with payment expected before the end of 2026.

However, he said the interim grant was only one component of the broader constitutional and fiscal relationship between Sarawak and the Federal governments.

“What Sarawak needs is a permanent, predictable and mutually agreed formula that takes account of changing development needs, the cost of providing public services, the state’s circumstances and the constitutional framework,” he said.

Willie said a sustainable formula would give Sarawak greater certainty in planning long-term infrastructure, healthcare, education and rural development programmes.

He urged both governments to conclude negotiations within a clear timeframe and ensure that agreed arrangements were implemented transparently.

Willie also called for a clear, transparent and time-bound roadmap to address outstanding MA63 matters, accompanied by regular progress reports to the public.

He said the implementation of MA63 should be assessed in its entirety rather than solely through the number of matters declared resolved.

While acknowledging the finalisation of 12 MA63-related matters, including permanent representation for Sabah and Sarawak on the Inland Revenue Board, the transfer of Bintulu Port to the Sarawak government and the transfer of MASwings to Sarawak for its transformation into AirBorneo, he stressed that outstanding issues required continued attention.

These include the distribution of authority, revenue, natural resources and the exercise of Sarawak’s constitutional rights.

Willie said the next phase of federal-state cooperation should focus on fair and predictable fiscal arrangements, meaningful devolution of authority and a more sustainable relationship between natural resources and development.

He added that Sarawak’s interests in oil and gas, energy, land and other natural resources must be addressed through constructive negotiations, clear legal frameworks and mutually understood arrangements.

“Fiscal autonomy does not mean disengagement from Malaysia. Rather, it means strengthening the ability of Sarawak to manage its development priorities effectively within the Federation,” he said.

Willie said greater fiscal certainty and flexibility would strengthen Sarawak’s ability to implement its development priorities while contributing to Malaysia’s overall economic growth.