NUR ALISHAR BINTI MOHAMAD ALI 277503

What is MA63?
Under the 1963 Malaysia Agreement, Sabah and Sarawak were allies of the former
Federation of Malaya, but this position has eroded. Malaysia is a country with a
constitutional monarchy system which consists of West Malaysia which is the
Peninsula and East Malaysia which also consists of the states of Borneo Malaysia
which is Sabah and Sarawak.
Many individuals still do not understand how Sabah, Sarawak and the Peninsula
(formerly known as the Federation of Malaya) first joined in the 1963 Malaysia
Agreement or MA63.
In the 1960s, the British faced pressure to leave their colonies in the Malay
archipelago, but they still wanted to ensure that their business and strategic interests
would remain under pro-British rule. Therefore, they urged Sabah which also known
as North Borneo, Sarawak and Singapore to join the Federation of Malaya (which
had gained independence in 1957)
In preparation, the Cobbold Commission (1962) conducted a survey that eventually
led to the decision that the people of Sabah and Sarawak agreed to form a new
nation as long as their rights and interests were protected.
Therefore, MA63 was produced to ensure a successful decolonization process as
well as clear and fair terms between the four parties to form Malaysia. Therefore,
there is a specific memorandum for each Borneo region which is 18 items for
Sarawak and 20 for Sabah.
Among those things are:
1. Full control of Sabah and Sarawak immigration laws by the state government.
2. Borneonilization of local public services.
3. Islam will be the official religion of the federation but both Sabah and Sarawak will
not have any official state religion to respect the local religion.
4. Protection of the position and privileges of indigenous peoples
5. The representation of Sabah and Sarawak in the federal government is
proportional to its population.
Finally on 16 September 1963, the union now known as Malaysia was born.
Nevertheless, due to political differences, Singapore had negotiated to secede and
become an independent nation in August 1965. Sabah and Sarawak remained in full
confidence that their agreement would remain respected and upheld by the
Malaysian Constitution.
However, over time, the value of MA63 is increasingly eroded. In 1976, the
agreement was restructured and Sabah and Sarawak were downgraded from former
allies of the Federation of Malaya to states within Malaysia only. This makes Sabah
and Sarawak have limited power over their respective territories now.
 NUR ALISHAR BINTI MOHAMAD ALI 277503

Many believe that these changes were politically motivated and enacted with policies
to increase power at the federal level. The drafting of the original agreement has led
to economic problems. Now, the federal government has more power over the
exploitation of natural resources in Sabah and Sarawak. The two states have
produced 60% of Malaysia's oil and gas but only receive 5% of royalties while the
federal government keeps 95% of its revenue.
As a result, Sabah and Sarawak have limited budgets for infrastructure development
in contrast to the rapidly growing development in the Peninsula. This can be seen
when many people in Sabah and Sarawak have difficulty accessing basic
necessities such as water, electricity, roads, health services, and education.
In addition, these two regions also face outside interference in social issues. There
was also pressure to enforce an official religion, the dilution of indigenous identities,
and the reduction of power over border and land and water sovereignty. This has
been going on for more than 40 years to the disappointment of the people of Sabah
and Sarawak.
Since 2018, Malaysia has witnessed political change and has undergone a change
of government twice. As a result of these new coalition governments, politicians have
pledged to address issues such as MA63, which means:
1. To restore the equal status of Sabah and Sarawak with Peninsular Malaysia in
Malaysia
2. Increase royalties for revenue from natural sources such as oil and gas, as well as
the share of funds and revenue (from taxes and production)
3. Increase administrative rights over education, language and religion
In 2019, a proposed constitutional amendment to the MA63 agreement was made to
change Sabah and Sarawak from state status back to province. After months of
heated debate, the MA63 amendment vote failed in parliament. Some have argued
that the change is purely aesthetic and not the same as an actual return to what was
enshrined in the original MA63 document.
However, members of the Sabah and Sarawak government leadership vowed to
continue to fight for it until it is agreed and approved. The approval of this
amendment will bring Malaysia one step closer to federal equality. Sabah and
Sarawak are no longer on par with peninsular states such as Selangor or Johor; their
position will be restored, as promised in MA63, to be on par with the whole of
Peninsular Malaysia.
Such changes will require an open mind and the willingness of politicians and the
people to accept the reduced role of Peninsular Malaysia in Malaysia and fulfill the
original MA63 agreement. Therefore, this is where we play a very important role
where young Malaysians will determine the fate of the country in the next General
Election. It is very important that we continue to learn about MA63 and talk to our
friends and family about it.
 NUR ALISHAR BINTI MOHAMAD ALI 277503

Meanwhile, the government and civil society organizations need to help educate
Malaysians accurately on MA63 so that they can participate in beneficial discussions
and debates. This will empower the people of Sabah and Sarawak, and push the
state representatives towards restoring Sabah and Sarawak as allies in Malaysia.