MA63: 40% revenue, royalties require further discussion – CM

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KOTA KINABALU: Chief Minister Datuk Seri Panglima Shafie Apdal is confident that the Federal Government is moving in the right direction towards implementing the Malaysia Agreement 1963 (MA63) in line with the demands of the State Government.

Shafie said the State Government is aware that there are several matters that required further discussion, including the return of 40 percent revenue to Sabah and the oil royalties.

He said the Special Cabinet Committee to Review the MA63 has discussed more than 40 issues pertaining to the rights of Sabah and Sarawak.

As disclosed in a press statement from the Prime Minister’s Office (PMO), he said, seven issues concerning the MA63 had received joint agreement, including on export duty claims on logging exports and forestry products, administration of Pulau Sipadan and Ligitan, and gas distribution and regulatory powers on electricity and gas, which have been brought to the Federal Cabinet.

Shafie said the special committee has agreed that the State Government would take over regulatory power on electricity and gas but there were technical issues to be resolved before this can be realized, adding that a company has been appointed to conduct due diligence on the matter.

“The Federal Cabinet has agreed to hand over (the regulation of electricity and gas). But the State Government has to look into the RM1 billion subsidy and debts incurred by Sabah Electricity Sdn Bhd (SESB) and other technical issues,” he said when asked to comment on the PMO’s statement that seven issues concerning the MA63 had received joint agreement as of July 23, while 14 issues still required further discussions and are expected to be resolved before August 31, after the launching of his wife Datin Seri Panglima Shuryani Shuaib’s recipe book entitled ‘Curry Leaves’ by Deputy Chief Minister, Datuk Christina Liew, here yesterday.

Shafie said that not every issue could be resolved in the short term, such as the return of the 40 percent revenue to the State Government and oil royalties, which needed to be discussed in greater detail.

Nevertheless, he was grateful to the Prime Minister, Tun Dr Mahathir Mohamad, even though there were a few aspects that required further refinement.

“There are certain quarters who want something else. Now, we have achieved a little, and we are working towards realizing what Malaysians in Sabah desire,” Shafie said.