PUTRAJAYA – The Federal Constitution is the basis for guaranteeing the rights of states in Malaysia and determines their relationship with Putrajaya, government spokesman Fahmi Fadzil said.
He said the cabinet had acknowledged comments made by “several parties” recently on states’ relationships with the federal government.
However, Fahmi said it should be remembered that the Federal Constitution guides these matters.
“Malaysia is formed upon the agreement of all states based on the principle of federalism, which is the main core of the Federal Constitution.
“The development and progress of the nation are based on the strength of the federation, together with all the states,” he said at the post-cabinet press conference, here today.
Fahmi, who is also communications minister, said in the case of Sabah and Sarawak, talks with the federal government on returning state rights are also guided by the Malaysia Agreement 1963 (MA63), besides the Federal Constitution.
In the peninsula, the two states that have asked Putrajaya for more returns of their tax revenue are Penang and Johor.
Penang Chief Minister Chow Kon Yeow said the state would send an official letter to Prime Minister Datuk Seri Anwar Ibrahim to request for a return of 20% of taxes collected by the state and given to the federal government.
Johor meanwhile, has submitted a formal request during talks with federal government representatives yesterday for a return of 30% of its tax revenue.
This follows Johor Crown Prince Tunku Ismail Sultan Ibrahim’s suggestion on Sunday for the federal government to allow Johor to retain 20% to 30% of its tax revenue.
Tunku Ismail said Johor only received RM1.4 billion out of the RM48 billion in tax revenue it contributed to federal coffers. – June 12, 2024