Terengganu MB urges cooperative federalism for state development

KUALA LUMPUR: The federal government has been urged to adopt a cooperative and fiscal federalism model to enhance state development. Terengganu Menteri Besar Datuk Seri Ahmad Samsuri Mokhtar emphasised the need for improved policy coordination and resource allocation. He suggested wider taxing powers for states to increase revenue streams under the constitutional framework. “In the spirit of cooperative federalism, I propose special federal and state grants via Article 76 of the Federal Constitution,” he said during the 13th Malaysia Plan debate in Dewan Rakyat. He highlighted that direct allocations would bypass bureaucratic delays in national or state projects. Ahmad Samsuri, also Kemaman MP, recommended forming a Commission to Study National Development Transformation. The commission would evaluate past Malaysia plans and audit current allocation systems for efficiency. He cited fiscal models like Equalisation Payment and Fiscal Stabilisation Programme from Germany, Canada, and Australia. “This commission must include state representatives to uphold genuine federalism,” he added. The Terengganu government also proposed a National Centre of Excellence for rare earth elements (REE). The centre would focus on non-radioactive rare earths (NREE) processing, metallurgy, and zero-waste recovery. Ahmad Samsuri noted the REE industry’s expansion into mining, purification, downstream industries, exports, and environmental protection. “This industry promises significant returns for both the state and nation while benefiting...