By Ir. Joseph Lakai
Miri, Sarawak
Sabah and Sarawak are among Malaysia’s top contributors of national income.
SINCE the formation of Malaysia on 16 September 1963, the people of Sabah and Sarawak wereassured that they would be equal partners within the Federation.
Yet more than sixty years on, that pledge remains largely unfulfilled.
In truth, development expenditure has been heavily skewed towards Peninsular Malaysia, particularly the Klang Valley, deepening the economic chasm between the regions.
What makes matters worse is that Sabah and Sarawak are still compelled to shoulder the burden of the national debt, despite receiving little to no tangible benefit from the massive spending that incurred it.
1. Disproportionate Spending and Infrastructure Inequality
Mega infrastructure ventures such as the MRT, LRT, ECRL and the West Coast Expressway, worth billions of ringgit, have been implemented almost exclusively in the Peninsula.
By contrast, the Pan Borneo Highway, envisioned as the critical transport lifeline for Borneo, remains incomplete and frequently delayed.
These Peninsula-based megaprojects have clearly ballooned the national debt.
Yet Sabah and Sarawak are still expected to help repay those debts through federal revenue collection, regardless of the lack of local benefit.
2. A Stark Development Divide
Across the Peninsula, rural areas are experiencing rapid development.
In the interiors of Sabah and Sarawak, however, dirt roads, run-down schools, deteriorating clinics and erratic water supply remain part of daily life.
In today’s digital age, many students in remote areas must still climb hills simply to access mobile internet.
And still, Sabah and Sarawak are referred to as “equal partners.”
If this is genuinely the case, why does such a stark development gap continue to exist?
3. Major Contributions, Minimal Returns
Sabah and Sarawak are among Malaysia’s top contributors of national income, particularly in oil and gas, timber, and other vital commodities.
Yet the petroleum royalty granted to the two states is a paltry five percent.
The remainder is absorbed into federal coffers and used to finance the federal government’s priorities, including debt repayments that have no direct impact on Borneo.
This situation is a glaring case of economic injustice and undermines the original spirit and intention of the Malaysia Agreement 1963.
4. National Debt, Shared Burden with Unequal Rewards
Malaysia’s public debt now surpasses RM1.5 trillion.
The bulk of this sum has gone towards infrastructure, urban growth, and federal government operations concentrated in the Peninsula.
Despite this, the debt is paid collectively.
Revenues from Sabah and Sarawak are funnelled into the same federal system.
This means Borneans are helping to pay for developments they do not experience firsthand.
It is akin to paying for a luxurious home in another city, without ever seeing it or stepping inside.
5. MA63: A Hollow Promise?
The Malaysia Agreement 1963 was meant to provide a framework of fairness and equality within the Federation.
Yet many of its key provisions, especially those relating to financial rights, resource management and autonomy, remain unimplemented or are only partially acknowledged.
It is time the federal government stopped using MA63 as a mere campaign slogan and began enforcing it as a binding contract of partnership.
Conclusion: It’s Time to Restore Justice
Sabah and Sarawak are not burdens. We are contributors, co-founders and builders of the Malaysian nation.
Yet time and again, we are treated as if we are junior members in a club we helped create.
Unless fiscal justice is restored, frustration and instability will only grow.
Sabah and Sarawak deserve a just share of national wealth, genuine financial autonomy, and the right not to be saddled with debts that offer no benefit to our people.
Sabah and Sarawak are not passengers aboard the Malaysian ship.
We are the shipwrights who helped build her.
And it is our right to reclaim what is due to us, not out of pity but out of the equity and dignity owed to partners of this Federation.
Editor: The views expressed are those of the writer and do not necessarily reflect that of talantang.com
