It S Time For A New Deal For States

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ADUN SPEAKS | Now is the time. From Sabah, Sarawak, Penang, and now Johor, states are dissatisfied with the concentration of power and resources in the hands of the federal government and the resultant lack of economic and infrastructural development.
In the royal address to the Johor state assembly two days ago, Sultan of Johor Sultan Ibrahim Sultan Iskandar detailed a litany of failed promises and outright failures by the federal government, such as pothole-ridden federal roads, poor amenities at the state’s public hospitals, and the sorry state of the Customs, Immigration and Quarantine complex.
The sultan thundered that the state of Johor shouldn’t be “dianaktirikan” or treated as a stepchild.
The sultan’s views have to be taken seriously by the federal government and all Malaysians, as he has pointed out the deteriorating state of Malaysian federalism. Unfortunately, these problems are not unique to Johor.
Sultan of Johor Sultan Ibrahim Sultan IskandarADSMalaysia was established as a federation of states, but it has now become a highly centralised polity.
1. Recently, the Sabah Law Society and Sabah Pakatan Harapan sued the federal government for not fulfilling the constitutional provision of providing the state with 40 percent of revenue collected from Sabah;
2. The sentiments in Sarawak against the federal government have been consistently high due to the sense of unequal distribution of resources and the inability of the federal government to empathise and comprehend the aspirations, concerns and desires of the people of Sarawak.
3. The state governments of Penang and occasionally Kelantan have also complained that their respective states were treated like stepchildren due to political differences with the federal government.
When Malaysia was formed, income taxes were not as important a source of revenue as in current days. Providing the states with the sole power to manage lands and natural resources was deemed a fair deal.
However, over the decades, the federal coffer expanded many folds due to the expansion of the modern economy, hence the collection of corporate and personal income taxes. And with the enlargement of federal collection revenue, the roles and responsibilities of the federal government swelled.
Politically, during the era of Umno-Barisan Nasional one-party dominance, Umno menteri besar or chief ministers were political appointees of the prime minister via his power as Umno president, and they were thus subservient to him, leading to the concentration of power in the hands of the prime minister.
The 14th general election ended the Umno-Barisan Nasional one-party state as well as prime ministerial supremacy, providing space for a “New Deal” to be negotiated.
The call by the sultan of Johor for the federal government to treat the state of Johor better in terms of power-sharing and resource-sharing is timely and resonates with the sentiments among states that are in a similar predicament.
He stated that the federal government collected RM13 billion from Johor, but only a meagre amount has been channelled back into the state.
In 2020, through the archaic mechanism of “per capita grant”, Johor received RM47.82 million of federal funds, and through “state roads maintenance grant”, Johor was given RM626.42 million. The total amount the Johor state government received from the federal government in 2020 was RM888.97 million, a disproportionately small amount compared to the tax collected from the state.
It’s time for the federal and state governments to renegotiate, to create a Malaysian federalism that is more balanced and just, which will then contribute to the prosperity and well-being of ordinary Malaysians.
On 30 May, Penang chief minister Chow Kon Yeow proposed a Federal-State Relations Commission to be jointly formed by the federal and state governments to study the devolution of power and resources to the states.
Chow also proposed an “All-states Collaboration Committee” to enhance formal and informal cooperation among states and develop mechanisms to coordinate federal-state issues.
On behalf of the Johor opposition, I have written to Johor Menteri Besar Onn Hafiz Ghazi on 19 May to propose the formation of a bipartisan state assembly Select Committee on Rejuvenating Federalism and Empowering the States.
I will speak at the Johor state assembly on Sunday, June 19, to echo the call by Sultan Ibrahim to renegotiate power-sharing and resource-sharing arrangements between the federal government and the state governments in the federation.
I will recommend to the Johor state government:
1. To initiate and support a bipartisan Johor state assembly resolution to call on the federal government to form a Federal-State Relations Commission to study the ‘new deal’ power-sharing and resource-sharing for Malaysian federalism for the next 50 years. The commission should release its report by the end of this year.
2. That the Johor menteri besar lead the effort of all like-minded state governments to form an ‘All-States Collaboration Committee’ to coordinate and set an agenda for the new power-sharing and resource-sharing between the federal government and the states. This will be a “coalition of the willing”. There is no need to wait until all states agree to join. The states which see the current federal-state relation as unfair should join hands to push for a new deal.
3. That the Johor state assembly form a bipartisan select committee to realise the call by Sultan Ibrahim to rejuvenate federalism and empower the state.
It’s time for a new deal between the federal government and the states. Johor deserves better. Malaysians deserve better. - Mkini
LIEW CHIN TONG is Johor DAP chief and Perling assemblyperson.
The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.

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