Cerita Malaysia
Unity Government and Reform · Treatise · Chapter 155 / 156

The Agreement at Sixty

Bintulu Port's handover to Sarawak in 2026 is one clause in a 1963 agreement still being fulfilled, item by item, six decades on

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On 21 July 2026, administrative control of Bintulu Port was formally transferred to the Sarawak state government.

It was one of the 29 demands Sarawak placed on the table when it agreed to join Malaysia. Fifty-nine years and eleven federal governments later, this particular demand was met. 1,2

Sixteen others have not been.

What the Agreement Promised#

On 9 July 1963, Britain, Malaya, North Borneo (now Sabah), Sarawak and Singapore signed the Malaysia Agreement in London. The Federation of Malaysia came into being on 16 September that year.

During negotiations, Sarawak put forward 20 conditions — the 20-Point Agreement — while Sabah submitted 18. The demands covered immigration control (Sarawak and Sabah retained the right to regulate entry of non-citizens), religious provisions (Islam was not to be the official religion of Sarawak), jurisdiction over land, and special arrangements on official languages. 3,4

These conditions were incorporated into the Federal Constitution as a dedicated protective layer — Part XIIA. They are not ordinary statutes. They are constitutional commitments, amendable only through constitutional amendment. 3,4

The Petroleum Ledger, and a Common Misconception#

"The federal government only gives Sarawak a 5% petroleum royalty" — this is the most cited grievance in MA63 debates.

The reality is more complicated.

According to ISEAS academic research, the 5% rate was not imposed by Kuala Lumpur. Sarawak's Chief Minister at the time, Abdul Rahman Yakub, proposed the figure himself during negotiations, as a bargaining chip for other political arrangements. 4,3

But times have changed. What 5% meant in millions of ringgit then means billions today. Sarawak eventually found an alternative route through Petros, its state petroleum company: collecting state sales tax on petroleum directly, bypassing Petronas. As of the reporting period, Sarawak had collected a cumulative RM19.55 billion through Petros, while Sabah had collected RM7.36 billion through a similar mechanism. 5,4

The dispute between Petros and Petronas over control of natural gas aggregation remained unresolved as of 2026. 4,5

Where GPS Stands#

In the 2021 Sarawak state election, GPS (Gabungan Parti Sarawak) won 76 of 82 seats — the coalition's largest-ever victory. Since 2018, GPS had broken from Najib's Barisan Nasional and positioned itself as an independent force, anchored in Sarawakian local identity. 3,2

After the 2022 federal election, GPS backed Anwar's federal government as a conditional third party, in exchange for concrete commitments on MA63 demands. This was not unconditional loyalty — it was GPS playing dual arithmetic between Kuala Lumpur and its home electorate: leverage at the federal level, and the image of a "sovereignty defender" at home.

On 29 November 2025, Sabah held its state election, producing a hung legislature: GRS (Gabungan Rakyat Sabah) won 29 seats, Warisan (opposition) won 25. GRS announced the formation of a government in January 2026. 6,2

The Anwar Government's Scorecard#

Of 29 demands, the Anwar administration has resolved 9. In total, since MA63 was signed, all federal governments combined have resolved 13 — leaving 16 outstanding. 2,1

July 2026: Bintulu Port handed over. 1,2

Sabah's special grant raised to RM1.5 billion. 7,2

The MA63 Technical Committee issued directives to all federal ministries to prioritise the remaining demands before a September 2026 meeting.

These are real steps. But 16 of the 29 demands have been waiting since 1963 — more than six decades. The pace of delivery has never matched the pace of the original signing.

For the historical foundations of Malaysia's formation, this site's The Advice That Must Be Followed traces the arc from the British Resident system to post-colonial nation-building. For who was included and who was left at the margins of the federal compact, Who Became a Citizen offers the fuller history.

The Port and the Line It Marks#

Bintulu Port is a deepwater harbour on Sarawak's northeast coast, and the primary export terminal for liquefied natural gas (LNG). From 1963 to 2026, it was managed by a body under federal jurisdiction.

The day the port changed hands, local Sarawak media covered it in detail. Federally, the response was muted.

When an agreement takes 59 years to deliver a single item, it demonstrates two things simultaneously: the agreement has binding force — because it was ultimately honoured — and the system generates no urgency. Without GPS's electoral leverage, without the pressure of petroleum revenue interests, these demands would most likely still be sitting in policy files.


Related debates and historical articles: Debate Hall · The Advice That Must Be Followed · Who Became a Citizen

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