In Sarawak, the concept of a formula regarding the entitlement to federal revenue derived from the state has been discussed among politicians linked to the current state government, although the specifics of this formula remain unclear.

Some of my readers have gone overboard! Can you imagine what they want to know from me, of all people? It’s about the total amount of the Special Grants received so far by Sarawak from the federal government of Malaysia.

Understanding the Special Grants

They point to Article 112c and Article 112D of the Federal Constitution regarding Sarawak’s entitlement to these Special Grants and, by implication, to any grants that have remained unpaid for over 40 years.

Clearly, they are influenced by Sabah’s success in having the court declare that state’s entitlement to 40 percent of the federal revenue derived from there.

‘The formula’

In Sarawak, discussions about this formula have been circulating among state government politicians.

While I have heard about this formula from sources who prefer to stay anonymous, I do not know the significant details.

The Euphoria of Entitlement

Like many others, I am curious about whether there is a connection between that formula and the Special Grants specified in the Tenth Schedule of Part IV of the Federal Constitution.

In light of Sabah’s success in getting the court to confirm its entitlement to 40 percent of the net federal revenue, Sarawakians are under the impression that they are automatically entitled to a percentage of the federal revenue derived from their state, dreaming of arrears that the federal government has yet to pay.

This is why they have been seeking my assistance; however, I am just as uninformed as they are regarding the state’s share of revenue retained by the federal government.

Questions Surrounding the Formula

It is not as clearly defined as it is for Sabah’s entitlement to its share of the federal revenue.

It would be beneficial if readers could urge their representatives in the State Legislative Assembly (DUN) to inquire from the Sarawak government about the purpose of this formula.

They should ask their elected representatives about the Special Grants to Sarawak – specifically in Parliament – whether there are any issues regarding the disbursement of those grants to the state.

Let’s see what the response will be.

Credibility of Legislative Answers

The answers from legislators associated with both governments carry more weight than my opinions as a newspaper columnist.

The influence of the High Court’s judgment on Sabah’s entitlement to 40 percent of the federal revenue has led to discussions in Sarawak about being unfairly treated.

This High Court interpreted the provisions of the relevant Federal Constitution, ruling that Sabah was entitled to 40 percent of the net federal revenue from that state for 48 years!

Comparing with Sabah

When I was in Kota Kinabalu two years ago, I asked a couple of friends from the Sabah Law Society: “What’s in it for Sarawak?”

I was informed that Sarawak would not be entitled to any share of the federal revenue derived from Sarawak; however, “Your state is certainly entitled to the Special Grants, although there is no mention of the ‘two-fifths’ as in the case of Sabah in terms of Part IV of the Tenth Schedule of the constitution.”

For Sabah, the entitlement is clearly stated in black and white.

Hope for Clarity

For Sabah, the relevant clause specifies a grant equal to two-fifths of the amount by which the net revenue derived by the Federation from Sabah exceeds the net revenue for 1963, under certain conditions.

Sarawakians have not lost hope.

I have been informed that the Sarawak government is still working on a certain formula.

As vague as this is, we are eager for clarification regarding this formula.

The Million-Dollar Question

One cannot help but wonder: what if the amount allocated under the Special Grants to Sarawak is reclassified as part of the financial allocation under the annual federal budget for Sarawak?

We need someone in authority to clarify this matter.

What about our MPs? These are two distinct sources of funds; they cannot be combined (the annual budgetary allocation and the fixed amount of Special Grants under the Constitution after necessary reviews).

We look forward to receiving positive news.

Sarawak may be fortunate enough to receive a generous Christmas present or Hari Raya gift.

Eh, gift? Isn’t it an entitlement?

Request for Transparency

There must be records maintained by both the federal and state governments detailing the total revenue derived from Sarawak since Malaysia’s formation.

This information could be used to calculate what Sarawak should receive based on a percentage of the federal revenue, minus the amount retained by Sarawak.

For now, we must trust the state government to request the federal government to share the necessary information.

The simple request from ordinary Sarawakians is clear – inform us about the outcome of any inquiries made by the state government regarding the Special Grants after the necessary reviews.

Asserting the state’s rights to the Special Grants enshrined in the Constitution is the responsibility of the state government.

All the rest of us can do is allow that government time to fulfill its duties without undue interference from anyone else.

Let’s keep our fingers crossed.

Final Thoughts

Sarawak may not receive as much as Sabah, assuming the federal government will soon release the money owed to that state following the High Court ruling.

We would be pleased for the Sabahans once their state has received the funds.

To my readers, Merry Christmas and Happy New Year!

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About the Author

Danny H is a real estate negotiator in Miri, specializing in residential and commercial properties. He provides trusted guidance, updated listings, and professional support through MiriProperty.com.my to help clients make confident property decisions.

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