PUTRAJAYA:The Cabinet has viewed the statements made by various quarters on several issues concerning the relationship between the federal government and state governments.
Communications Minister Fahmi Fadzil said Malaysia, however, was formed based on the agreement of all states and is grounded in the principle of federalism which is a key foundation of the Federal Constitution (FC).
"Malaysia's development and progress were based on the strength of the federal government with the states.
"Therefore, the FC serves as the basis for ensuring the rights of the states and determining the relationship between the federal government and state government.
"Meanwhile, matters concerning Sabah and Sarawak are guided by the provisions in the FC and the Malaysia Agreement 1963 (MA63)," he told a press conference today.
Fahmi said this in response to an official request made by the Johor government to Putrajaya to allocate 30 per cent of its tax revenues back to the state.
Johor Menteri Besar Datuk Onn Hafiz Ghazi said the official request was submitted following the directive of His Royal Highness Tunku Ismail Sultan Ibrahim, Regent of Johor.
On Sunday (June 9), His Royal Highness Tunku Ismail Sultan Ibrahim, Regent of Johor had said that the federal government should be revamped with Johor being treated as a partner for Malaysia.
He said Johor provided about RM48 billion in tax revenue to the federal government but only received RM1.4 billion in return.
Similarly, Penang last month also requested the federal government to return 20 per cent of taxes collected from Penang so that the money could be used for various programmes and projects to further boost development in the state.
Its Chief Minister Chow Kon Yeow said the money could also be used to boost transportation links, the services sector, property and recreation.