Abang Johari fields questions from the media. – Photo by Chimon Upon

KUCHING (July 2): Detailed discussions on increasing Sarawak’s interim special grant under Article 112D of the Federal Constitution have yet to take place, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said Prime Minister Datuk Seri Anwar Ibrahim had briefly raised the matter during their recent meeting in Bintulu, but no detailed negotiations had been held.

“Not in detail yet. However, when we met in Bintulu, he did touch on the matter. He said he would look into increasing the allocation.

“I simply kept quiet and thanked him because he did not mention how much. So we just remain quiet for now,” he told reporters after officiating the launch of Western Digital (WD) Sarawak Plant 2 at the Samajaya Free Industrial Zone here.

Commenting on Anwar’s recent statement in Parliament that Sarawak should receive an interim payment similar to Sabah, Abang Johari welcomed the federal government’s intention to increase the allocation.

“I would like to thank the federal government if it decides to increase the allocation under Article 112D of the Federal Constitution. If they want to increase it, thank you,” he said.

Asked whether Sarawak expected to receive between RM1 billion and RM1.5 billion based on its proposed formula for the special grant, Abang Johari said the amount would depend entirely on the federal government.

“We are also sympathetic towards them. If they have the money, then of course, why not share it? But if they don’t, they may be facing certain financial constraints.

“So Sarawak’s position is this. If you can afford it, then give and we share. If you cannot afford it, we can tolerate that,” he said.

Nevertheless, he suggested that support could also come in other forms, particularly incentives for emerging industries such as renewable energy and hydrogen.

He said he had proposed tax incentives for companies investing in new technologies, including those using renewable energy, as well as lower taxes on hydrogen to encourage wider adoption of hydrogen-powered vehicles.

“Perhaps support us through other means, such as tax incentives. We Sarawakians are not greedy.

“You see, with Western Digital, we have shared this partnership for 30 years through difficult times including the Covid pandemic.

“That is the spirit of partnership and that is how Sarawak has always been,” he said.

In Parliament on June 30, Anwar, who is also Finance Minister, said negotiations between the federal and Sarawak governments to increase the state’s special interim payment are expected to be finalised soon.

He said Sarawak deserved an increase in its special interim payment, similar to Sabah, in line with the spirit of the Malaysia Agreement 1963 (MA63).

“This matter will be resolved as soon as possible, and negotiations are currently underway between the Treasury Secretary-General and Sarawak State Secretary,” he said during the Prime Minister’s Question Time in the Dewan Rakyat in Kuala Lumpur.

He was responding to a supplementary question from Sri Aman MP Datuk Seri Doris Sophia Brodi on whether Sarawak was entitled to receive a special interim payment similar to what was granted to Sabah.