KUCHING – The Federal Government has reaffirmed its commitment to ensuring that the Malaysia Agreement 1963 (MA63) is implemented effectively, with emphasis placed on practical execution rather than merely financial allocations.
Deputy Prime Minister Datuk Amar Fadillah Yusof explained that while RM6 billion is allocated annually, only between 80 and 90 per cent of the funds are typically utilised by year’s end. He stressed that the government’s focus is now on ensuring that agreed matters under MA63 are carried out efficiently.
Speaking at the Sarawak 2026 Budget Conference held at the Borneo Convention Centre Kuching (BCCK) on Tuesday, Fadillah noted that technical committees, including the Public Works Department (JKR) and water agencies, play a crucial role in overseeing implementation.
He added that allocations exceeding RM50 million are channelled directly to the Sabah and Sarawak state governments, though challenges remain regarding their capacity to execute projects.
To address these issues, a dedicated task force has been established to monitor progress and ensure that approved projects are implemented in line with budget allocations. “These are the areas that we are currently examining in terms of effective and efficient implementation,” he said.
The Deputy Prime Minister also highlighted legal complexities as another challenge. Differences in interpretation between federal and state laws, particularly in Sarawak and Sabah, have slowed progress. He acknowledged that resolving these matters requires time and careful consideration of constitutional and legislative perspectives.
“Hopefully these issues can be resolved because there are not many outstanding matters at the moment, but they still need to be addressed,” he explained.
Joining him at the forum were Minister of Finance II Senator Datuk Seri Amir Hamzah Azizan, Sarawak Deputy Finance Secretary Datu Hasmawati Sapawi, Chief Executive Officer of Sarawak Centre of Performance Excellence Sdn Bhd (SCOPE) Joseph Lim Jiet Sek, Chief Executive Officer of Sarawak Public Service Leadership Institute Datu Dr Azhar Ahmad, and Dato Salihin Abang, Founder and Managing Director of SALIHIN International Group, alongside other dignitaries.
The renewed focus on MA63 reflects the government’s intention to strengthen cooperation with Sabah and Sarawak, ensuring that commitments made under the historic agreement translate into tangible benefits for both states.
