KUALA LUMPUR, Jan 4 — The Finance Ministry has agreed for projects worth RM50 million and below to be handed over to Sabah and Sarawak for direct management.

These were among the matters discussed and agreed to by the government as part of the Malaysia Agreement 1963 (MA63), Prime Minister Datuk Seri Anwar Ibrahim said.

"There were a few projects that were delayed, and although there is Sabah and Sarawak JKR (Public Works Department), but because most of the final decisions were always made in Putrajaya, a lot of allocations, despite being big allocations, were not fulfilled due to the (state) administration having to refer to the federal level.

"So we have decided that whichever project is RM50 million and below be handed over to Sabah and Sarawak for execution following existing laws, and decisions can be made by Kuching or Kota Kinabalu without delay due to old rules,” Anwar told reporters during a press conference after the post-Cabinet meeting held earlier today.

On the progress of the Pan-Borneo Highway, Anwar said the government has agreed to expedite and approve the additional allocation needed for the project’s Sabah phase.

Anwar said another matter raised under the MA63 during the meeting was the provision of special grants to Sabah and Sarawak.

"The provision of special grants to Sabah and Sarawak under Article 112D [of the Federal Constitution] which fixed an allocation of approximately RM16 million in the earlier stage, which should have been reviewed every five years was not done.

"This is one part of the agreement that has been revived and we will finalise this the soonest with the Sarawak and Sabah premier,” he said.

On the progress of the Pan-Borneo Highway, Anwar said the government has agreed to expedite and approve the additional allocation needed for the project’s Sabah phase.

"The progress [of the Pan Borneo Highway] is much better in Sarawak compared to Sabah where there are a lot of delays.

"As such we have agreed to hand over and approve additional allocation and the Works Minister will offer a detailed explanation,” said Anwar.