KUALA LUMPUR, Nov 8 — Prime Minister Datuk Seri Anwar Ibrahim has reportedly shut down any questions over secession, insisting that Malaysia operates as a federation.

Amid calls for more autonomy for members of the federation, Anwar said his administration has inherited the system and will continue to manage the relationships with its members and other minority groups.

"[Malaysia’s is] a federal system. We navigate, we negotiate, but we draw the line [if the need arises],” he was quoted telling Free Malaysia Today.

"We have to empower states where it is necessary. At the same time, the state can make demands. Sometimes they have the capability, sometimes they don’t.”

He said that the relationship between federal and state governments have been managed well by the current system.

"It will continue for decades to come. This is the system we have inherited, and I think we need to ensure we mature in this process,” he reportedly said.

"We need to ensure this process of negotiation [premised on] trust, understanding and respect continues,” he added.

Malaysia was formed in 1963 as a federation consisting of Malaya, Singapore, Sabah (then called North Borneo), and Sarawak.

Besides call for more autonomy in East Malaysia, states like Penang, Johor, Kelantan and Terengganu have also raised up issues of revenue and taxes.

In September, Deputy Prime Minister Datuk Seri Fadillah Yusof said 11 demands under the Malaysia Agreement 1963 (MA63) negotiation platform have been successfully resolved.

These included the designation of the Public Works Department in Sabah and Sarawak as a Technical Department; the handover of regulatory power over gas supply; and amendments to the Inland Revenue Board Act 1995 to appoint representatives from the Sabah and Sarawak state governments as permanent members of the board.

Fadillah, who is also the chairman of the MA63 Implementation Action Council Technical Committee, said the resolution also covered demands related to the administration of the judiciary in Sabah and Sarawak; special guidelines for the return of reserved land for federal purposes in Sabah and Sarawak.