After six decades of negotiation, the Malaysia Agreement 1963 is finally moving. On Friday, the MA63 Implementation Action Council met in Kota Kinabalu and emerged with two significant announcements: a commitment to increase Sabah and Sarawak's parliamentary representation beyond current levels, and a major boost to Sabah's interim special grant from RM600 million to RM1.5 billion.

These are not trivial developments. They address long-standing grievances that have defined federal-state relations since the formation of Malaysia. But they also raise questions about pace, process, and political motivation that deserve scrutiny.

The Parliamentary Seats Question

The agreement to increase Borneo representation is the more consequential of the two announcements. Currently, Sabah and Sarawak hold a combined 56 of 222 parliamentary seats — roughly 25 percent, compared with 75 percent for Peninsular Malaysia. 

The Cabinet has now agreed in principle that the ratio must be increased. But the mechanism remains undefined. No decision has been made on whether the target is 40 percent, and the matter must still be discussed with the Election Commission. The Prime Minister himself has admitted he is uncertain whether the change can be implemented before the next general election.

This is the recurring problem with MA63 implementation: the announcements come faster than the action. A constitutional amendment of this scale requires careful drafting, broad consultation, and a two-thirds majority in Parliament. None of that has happened yet. What exists is a commitment — welcome, but not yet binding.

The Money That Matters

For decades, Sabah's 40 percent revenue entitlement under MA63 has been disputed, delayed, and diluted. The interim grant of RM600 million was widely seen as inadequate. Raising it to RM1.5 billion, with the remaining RM900 million to be disbursed by November, is a meaningful step.

But it is still interim. The permanent formula remains unresolved. And until the 40 percent entitlement is honoured in full, the fundamental grievance — that Sabah has been underpaid for decades — persists.

Sarawak, notably, has already taken a different path. Its negotiations have been more assertive, and its leadership has been more willing to push. The result is that Sarawak has secured a more advanced arrangement. Sabah, by comparison, remains in the earlier stages of the same journey. This asymmetry is worth noting. Federal-state relations are not conducted uniformly, and the states that push hardest tend to get furthest.

Progress but Not Parity

The meeting also discussed accelerating the Borneonisation of the federal public service — the principle that Sabahans and Sarawakians should fill key federal positions in their own states. As of July 2026, Sarawak has surpassed its 80 percent target. Sabah has reached nearly 70 percent, with a target of 90 percent.

This is genuine progress. But it is progress from a low base. For decades, federal departments in Borneo were led by officers from Peninsular Malaysia. Local expertise was sidelined. Decisions about Borneo were made by people who had never lived there. Borneonisation is not just about representation. It is about competence, context, and respect.

The Political Subtext

Sabah and Sarawak together hold 56 parliamentary seats — a bloc large enough to determine who forms the federal government. Gabungan Parti Sarawak and Gabungan Rakyat Sabah are both partners in the Unity Government. Their continued support is essential for Anwar Ibrahim's coalition.

Delivering on MA63 commitments — or at least being seen to deliver — reinforces those relationships. It makes it harder for the opposition to argue that Putrajaya is ignoring Borneo. It gives the state governments tangible achievements to campaign on. And it positions Anwar as the leader who finally made progress on a promise that has been broken for generations.

Anwar's own framing acknowledged the stakes. He said MA63 must become "part of the national narrative" rather than being seen as an issue only for Sabah and Sarawak. That is a noble sentiment. It is also a political calculation. If the Unity Government can be portrayed as the government that honoured MA63, the Borneo bloc becomes easier to retain.

The Work That Remains

For all the progress, the fundamental question remains unanswered: when will Sabah and Sarawak actually receive what they are owed?

The parliamentary seat increase is agreed in principle but not in law. The 40 percent revenue entitlement is still being negotiated. Borneonisation is advancing but has not reached parity. Each of these requires legislation, consultation, and time — commodities that are in short supply as the next election approaches.

The risk is that MA63 becomes a campaign promise rather than a completed project. Announcements are made. Press conferences are held. Grants are disbursed. But the structural changes that would make the agreement meaningful are deferred, delayed, or diluted.

Progress Is Not Completion

Friday's announcements are welcome. They are steps in the right direction. The people of Sabah and Sarawak have waited six decades for these commitments. They deserve to see them fulfilled.

But progress is not the same as completion. And a promise made before an election is not the same as a promise kept after one. The test of MA63 is not how many meetings are held or how many press conferences are called. It is whether the constitutional amendments are passed, the revenue formula is settled, and the public service reflects the people it serves.

The direction is right. The destination is not yet reached. And the people of Borneo have been patient long enough.