Of the demands made by Sabah and Sarawak under the Malaysia Agreement 1963 (MA63), 16 are still at the negotiation stage, with one item listed as partially or temporarily resolved, and another two demands having reached policy decisions.
Minister in the Prime Minister’s Department (Sabah and Sarawak Affairs), Datuk Mustapha Moh, said there are currently 8 demands still under discussion, while another 5 demands have been submitted for top-level deliberation.
“The Madani government will continue to ensure that the implementation of MA63 is carried out prudently, inclusively, and in accordance with the spirit of the Malaysian Federation.”
He said this today (29th) during a ministerial Q&A session in the Dewan Rakyat, in response to a question from Datuk Matbali Musah, the Member of Parliament for Sipitang from Gabungan Rakyat Sabah, regarding what direct benefits the people of Sabah and Sarawak could expect from improved structures under MA63.
On the timeline for resolving the remaining demands, Mustapha indicated that it depends on several key factors, including differences in legal interpretation among parties, as well as lengthy legal procedures.
He pointed out that a total of 13 demands have been resolved to date, including the recognition of the Sabah and Sarawak Public Works Departments, the Sabah and Sarawak Departments of Irrigation and Drainage, the Sarawak Rural Water Supply Department, and the Sabah Water Department as technical agencies under Treasury Instruction No. 182 (AP182).
In addition, the Inland Revenue Board of Malaysia Act 1995 has been amended to appoint Sabah and Sarawak state government representatives as permanent members, the regulation of natural gas in Sabah has been handed over to the state government for power generation purposes, administrative management of judicial institutions in Sabah and Sarawak has been implemented, and the Sabah Labour Ordinance and Sarawak Labour Ordinance have been amended.
Mustapha said that the Madani government is committed to safeguarding the interests of East Malaysia, as demonstrated by the structural reforms implemented, including the establishment of the MA63 Implementation Action Council (MTPMA63) chaired by Prime Minister Datuk Seri Anwar to accelerate negotiations and resolve outstanding issues.
He added that the government’s resolve is also reflected in its financial support for Sabah and Sarawak, with the 2026 development budget increased to RM6.9 billion and RM6 billion, respectively.