Anwar agrees to Sarawak rep on LHDN board, raise special grant for state

KUCHING, Jan 20 — Prime Minister Datuk Seri Anwar Ibrahim today said he has agreed to appoint a Sarawak government representative to the board of the Inland Revenue Board (LHDN) as soon possible.

He said the request from the state government was submitted long ago, but had not been approved by previous federal administrations

“So, at this meeting of the Malaysia Agreement 1963 (MA63) implementation action committee, I said there is no problem if there is a vacancy,” he told reporters after chairing the MA63 committee at the state legislative assembly here.

He said he agreed for the Sarawak Financial Secretary (SFS) to sit on the board as the official met the requirements of being a professional with relevant experience.

He said Sabah already has its representative on the board, but it is not proposed by the state government.

On the special grants given to Sarawak and Sabah under Article 122D of the Federal Constitution, the prime minister said he has agreed to increase the amount to RM300 million to Sarawak.

“The founding fathers at that time, including Tunku Abdul Rahman, stated that there should be a provision 122D in the Federal Constitution,” he said.

He said as the finance minister, the previous sum of RM16 million was unfair to Sarawak.

“However, the federal government may not be able to afford to give if it is too high, but it should be based on the financial capability and economy of Malaysia.” he said.

He said Sarawak Premier Tan Sri Abang Johari Openg had proposed a clear formula be put in place for the special grants to Sarawak and Sabah.

“I agree that there should be a clear formula, but at this early stage, we agree to increase the amount as an initial form of financial contribution to Sarawak until a clear formula has been agreed to,” he said.

Anwar said he also agreed to an additional allocation of RM1 billion as costs for early preparation to build customs, immigration and quarantine (CIQ) and security posts along the borders of Sarawak and Sabah with Kalimantan, Indonesia.

He said the allocation is also for the improvement of the road infrastructure near Sarawak’s border areas.

Anwar said he wants early preparation to start for the construction of CIQ and security posts and road infrastructures to be made immediately.