KUALA LUMPUR: An opposition lawmaker has proposed that the federal government introduce a federal-state special grant under a new act to enable direct funding to states for priority projects.
Terengganu Menteri Besar Datuk Seri Dr Ahmad Samsuri Mokhtar (PN–Kemaman) said this would allow funds to be channelled directly to states without leakages, bureaucratic hurdles, or delays from federal agencies.
“Malaysia should consider moving towards a model of cooperative federalism and fiscal federalism, where solving the people’s problems is prioritised over constitutional boundaries that were originally designed to prepare the nation for independence in 1957.
“This would require a new approach to policy coordination, project implementation, and resource distribution, including a broader allocation of taxation powers so that states can obtain greater revenue compared to the current framework,” he said during the debate on the 13th Malaysia Plan (13MP)in the Dewan Rakyat today.
Ahmad Samsuri said state governments have limited powers to collect taxes, especially when compared to the corporate and personal income taxes collected by the federal government.
“The 13MP should also serve as an opportunity to enhance the powers of the states, or to implement decentralisation in certain aspects and to a certain extent, so that states can progress more swiftly without being influenced by partisan political sentiments.
“This is to ensure that if the political alignment of the state and federal governments differs, it does not affect the state’s development or the well-being of its people,” he said.
He also suggested the establishment of a National Development Transformation Commission to review the effectiveness of past Malaysia Plans, audit the current grant system, and explore new mechanisms such as the Equalisation Payment and Fiscal Stabilisation Programme, which have proven effective in countries such as Germany, Canada, and Australia.
On other developments, Ahmad Samsuri proposed the establishment of a National Rare Earth Elements (NREE) Centre of Excellence to accelerate the growth of the industry in Malaysia.
“The industry is now headed for expansion in five areas, namely mining, refining and separation, development of midstream and downstream industries, preparation for export products, and environmental protection.
“This is a positive move, given that the industry is expected to generate significant returns for both the state and the nation, ultimately benefiting the people as a whole.
“I propose the establishment of the centre of excellence focusing on advanced material processing, rare earth element metallurgy, and zero-waste recovery to further drive the industry’s growth in our country.”
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