A RESEARCHER in the Constitutional, Legal, and Human Rights Cluster Muna ‘Adila Che Rime, has criticised Malaysia’s federal system, arguing that unequal Aidilfitri bonus allocations among states reveal an example of flawed federalism where the federal government dominates state affairs.
She highlighted the states’ financial dependency due to a constitutionally skewed revenue split, forcing them to borrow, and noted the lack of a clear funding formula beyond specific grants.
Muna also pointed out federal control over state economies, exemplified by the Non-Radioactive Rare Earth Elements export ban impacting Terengganu’s plans, and indirect fund disbursements to opposition states, sidelining elected leaders.
She suggested ‘equalisation payments’ or restoring Terengganu’s royalty rights to address economic disparities.
“Simply put, it’s federalism in name only, as nearly all state decisions or plans still involve the federal government. Federal control over industry and investment reduces states’ ability to chart their own economic paths.”
“Chief ministers lose the right to manage funds given directly to other states, are blocked left and right, yet are expected to deliver the same results. It’s truly sad!,” she said in an article in HarakahDaily. — March 29, 2025
