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THE Federal Government is pressing ahead with talks on eight outstanding matters under the Malaysia Agreement 1963 (MA63), including Federal financial obligations listed under List III, the Concurrent List, of the Ninth Schedule of the Federal Constitution, Deputy Prime Minister II Datuk Seri Fadillah Yusof said.
He said discussions also involve the expansion of civil service positions in Sabah and Sarawak in accordance with Article 112 of the Federal Constitution. Other matters being deliberated include the development of border areas between Sabah, Sarawak and Kalimantan, an increase in parliamentary representation for both states in the Dewan Rakyat, and the Borneonisation of the Federal civil service in Sabah and Sarawak.
“There are also proposals to amend Item 25A (Tourism) in List I (Federal List), Ninth Schedule of the Federal Constitution to List III (Concurrent List), Ninth Schedule of the Federal Constitution, along with issues related to health and education,” Fadillah said in a written reply published on the Parliament’s website.
He explained that a total of 29 matters are being discussed under the official negotiation platform for MA63, the Malaysia Agreement 1963 Implementation Action Council (MTPMA63), chaired by the Prime Minister.
“To date, 13 matters have been categorised as resolved, one as provisionally resolved, two have reached policy decisions, eight remain under discussion, and five have been referred for deliberation or decision at the highest level,” he said in response to a question from Datuk Larry Soon @ Larry Sng Wei (PBM–Julau) regarding the pending issues under MA63 and the latest progress in talks between the Federal Government and the governments of Sarawak and Sabah.
Fadillah added that the Review of Special Grants for Sabah and Sarawak under Article 112D of the Federal Constitution has been classified as provisionally resolved.
“Policy decisions have been reached concerning the delegation of powers on environmental matters and the appointment authority of Judicial Commissioners (Amendment to the Federal Constitution),” he said.
He noted that issues such as petroleum royalty and cash payments, mineral and oil fields, the Territorial Sea Act 2012, state rights over the continental shelf, and stamp duties on instruments of transfer, charge or lease of land under the Sabah Land Ordinance (Cap. 68) and the Sarawak Land Code (Cap. 81) are now referred for high-level discussion or decision.
Fadillah stressed that the government remains committed to expediting the resolution of all matters under MA63, although the timeline for each issue depends on the relevant legal processes.
He added that the readiness of the Sabah and Sarawak governments in terms of operations, human resources and finances must also be considered before any MA63 matter can be fully resolved.
“All outstanding MA63 matters will continue to be monitored by the Sabah and Sarawak Affairs Division (BHESS) under the Prime Minister’s Department, serving as the Secretariat to MTPMA63 and its Technical Committees, together with all stakeholders at the Federal and state levels,” he said.- October 24, 2025