“It will continue for decades to come. This is the system we have inherited, and I think we need to ensure we mature in this process,” the prime minister said in an exclusive interview with FMT.
He said Putrajaya is constantly faced with demands emanating from diverse groupings.
“First the Islamic professionals, the church groups, the Tamilians and Hindus. That’s the reality. Then you go to Sabah and Sarawak for their new demands.”
Despite this, Anwar said he did not see the existing relationship Putrajaya has with any state or grouping as cumbersome or problematic.
“We need to ensure this process of negotiation (premised on) trust, understanding and respect continues,” he said.
The prime minister was asked how national unity can be strengthened in the face of increasingly loud calls for more autonomy from several states.
“(Malaysia’s is) a federal system. We navigate, we negotiate, but we draw the line (if the need arises).
“We have to empower states where it is necessary. At the same time, the state can make demands. Sometimes they have the capability, sometimes they don’t,” he said.
Several states have in recent years sought to demand a greater share of national revenue.
Earlier this year, Penang and Johor expressed a desire to reclaim at least 20% of the taxes collected from them, while Kelantan, Terengganu, Sabah and Sarawak have pushed for a larger share of oil royalties.
Meanwhile, the Sabah Law Society is pursuing legal action to secure the state’s right to a 40% share of federal revenue collected from the state, as provided for under the Federal Constitution.
Sarawak has also escalated efforts to increase state revenue by seeking greater control over oil and gas resources both on and offshore.
In response, the federal government announced a doubling of special grants for Sabah and Sarawak in the 2025 budget.
Sarawak premier Abang Johari Openg has since acknowledged the growing understanding between federal and state leaders in issues relating to Sarawak’s rights under the Malaysia Agreement 1963.
More recently, federalism has been seen as Malaysia’s best safeguard against external military and political threats, amid rising US-China tensions and China’s expanded claims over the South China Sea.
To bolster security along East Malaysia’s borders, the government has improved maritime defences, which includes operating a navy submarine base in Kota Kinabalu, and the installation of a radar system on Sabah’s east coast.