From Pakatan Harapan to Perikatan Nasional: A Missed Opportunity for Reforms for East Malaysia?

Summary

INTRODUCTION

Sabah and Sarawak formed the Malaysian Federation together with Malaya and Singapore in 1963. Instrumental to the formation of the new Federation was an international treaty called the Malaysia Agreement 1963, signed in London by the British and Malayan Federation governments, and political representatives from Sabah, Sarawak and Singapore. The Malaysian Agreement guaranteed a special position as demanded by the East Malaysian political elites in the areas of religion and language, finance and tax, judiciary and immigration.

In the early stages, there was huge expectation that joining the Malaysian Federation would elevate East Malaysia's economic growth and bring adequate development to these vastly rural states. Substantial oil and gas discoveries in the early 1970s further prompted demands for meaningful economic development in Sabah and Sarawak.

The ruling federal government under Barisan Nasional (BN), while acknowledging the lagging economic conditions in East Malaysia, failed to meet expected levels of development and poverty reduction. At the same time, Peninsular Malaysia was systematically developed as one of the world's fast-growing economies. Sabah's and Sarawak's special position in the federation, especially various safeguards related to economic well-being, were eroded over time through legislative amendment and political manoeuvring that strengthened Peninsular power over East Malaysia.

The unprecedented win for Pakatan Harapan (PH) in the 2018 Malaysian General Election, however, revitalized demands for the restoration of East Malaysia's special position in the Malaysian Federation. A Special Cabinet Committee on MA63 was created and headed by the Prime Minister to oversee the restoration of the spirit of the initial Malaysia Agreement. These efforts were spearheaded by the PH-aligned Sabah state government, helmed by Chief Minister Shafie Apdal. By 2019, this Committee had amicably resolved seventeen out of twenty-one matters tabled by the East Malaysian states. It even proposed a constitutional amendment to recognize Sabah, Sarawak and Peninsular Malaysia as equal partners in the Malaysian Federation.

This initiative unfortunately failed to get the required two-thirds parliamentary majority. The collapse of PH in February–March 2020 and the rise of a Perikatan Nasional (PN) federal administration created uncertainty regarding the proposed restoration of East Malaysian rights. In fact, the previous report written by the MA63 Special Cabinet committee has been placed under the Official Secrets Act (OSA) by PN.