Politicians come and go, institutions remain: Leaders call for stronger federal-state framework

GEORGE TOWN, June 11 — Malaysia needs a stronger rules-based system to ensure the interests of every state are protected regardless of which political party is in power, state leaders at the Inter-State Forum on State-Federal Relations 2026 said today.

Leaders from several states, including Penang, Sarawak, Selangor, Kelantan, Terengganu and Perlis, said stronger institutions, constitutional safeguards and clearer mechanisms governing federal-state relations were needed to reduce the adverse effects of political changes on governance and development.

Perlis Youth and Sports, Communications and Digital, Transport, Science, Technology and Innovation Committee chairman Wan Zikri Afthar Ishak said political realities often influenced how states were treated, particularly smaller states with fewer parliamentary seats.

“Whether we like it or not, politics plays an important role,” he said during a press conference at the forum.

“Perlis only has three parliamentary seats. We are often not considered as important as states with larger representation. This is something we have faced for a very long time,” he added.

Wan Zikri said reforms should focus on creating an automated and institutionalised system that continues regardless of changes in political leadership.

“Leaders come and go. Whatever party forms the government, the system must continue. Every state should receive what it rightfully deserves,” he said.

He was responding to a question on whether Malaysia’s increasingly fragmented political landscape would affect efforts to reform federalism and strengthen nation-building.

Penang Chief Minister Chow Kon Yeow, in his speech at the opening ceremony of the forum, said discussions on federalism should focus on institutions rather than political parties.

“Politicians and political parties come and go. Some last one season, some last several seasons. But institutions remain,” he said.

“The objective of this forum is not only to discuss state interests but also the larger process of nation-building and how we can strengthen institutions and improve federal-state relations.”

Chow said Penang and other states had long advocated a review of fiscal federalism, including proposals for a share of tax revenue collected by the Inland Revenue Board to be returned to the states.

He said Penang had previously proposed that at least 20 per cent of tax revenue collected in each state be returned to the respective state governments.

“But if we can’t get 20 per cent, even 10 per cent we will accept,” he said.

He said such a move would enable states to invest more in infrastructure, public transport, social welfare and environmental conservation projects.

He acknowledged that the federal government also faced fiscal constraints but said revenue-sharing remained a subject frequently discussed among menteri besar and chief ministers across political divides.

“Everyone has expressed their desire for a share of federal revenue after seeing what Sabah and Sarawak have managed to obtain,” he said.

On decentralisation, Chow said certain functions could potentially be delegated to state governments, although large-scale public transport projects would still require federal funding due to their high costs.

Meanwhile, Deputy Minister in the Sarawak Premier’s Department (Law, MA63 and State-Federal Relations) Datuk Sharifah Hasidah Sayeed Aman Ghazali said stronger legal and constitutional frameworks were needed to institutionalise federal-state relations.

“There must be some law in regard to this. There must be a review of the Constitution and how we manage and work on federal-state relations,” she said.

“The law must be there to protect the relationship, whether a state is small or large,” she added.

Sharifah said Sarawak’s pursuit of rights under the Malaysia Agreement 1963 (MA63) had continued for decades, regardless of the political composition of the federal government.

However, she acknowledged that the current unity government had helped facilitate progress in negotiations.

“What is important is that we have good relations within the framework of the Constitution, the law and mutual trust between the federal and state governments,” she said.

Penang State-Federal Relations Select Committee chairman Gooi Hsiao Leung said the forum was intended to explore ways of strengthening existing federal structures through bipartisan reforms.

“We need constitutional reviews and mechanisms to ensure the needs of all states are properly safeguarded,” he said.

“If the institutions are strong, then it does not matter if governments change or different parties take over. The interests of all states will continue to be protected,” he said.

Earlier in his speech, Gooi said states should be viewed as partners in nation-building rather than merely administrative units or implementing agencies.

He said federalism reforms, including decentralisation, revenue-sharing and stronger institutional mechanisms, should be treated as a national agenda that transcends political divisions.

“Governments may change and political parties may come and go, but institutions remain,” he said.

“The decisions we make today on federal-state relations will continue to affect Malaysia long after all of us have left office,” he said.