We’re all familiar with the idea of the nation state. But have you ever heard of a state nation? Almost certainly not – because the term has just been invented by the Malaysian analyst Saiful Bahari Baharom, a former top official at his country’s Ministry of Finance and Prime Minister’s Office.
He coined the word to describe the way the Malaysian state of Sarawak is working to reclaim the rights it once had as an independent political entity on the island of Borneo for more than 100 years, while remaining very much a part of the country. But the concept of the “state nation” could be far more widely applicable in a variety of countries where often delicate issues of autonomy, independence or reunification need to be managed.
The history of modern Sarawak is fascinating. It was founded in 1841 by James Brooke, a British former soldier seeking his fortune in the East, who was granted land and the title of “Rajah” by the Sultan of Brunei for helping him put down a rebellion. Over the next six decades, the Brookes secured so many concessions from the declining Brunei empire that their state covered nearly all the central and northern coastal areas of Borneo. Recognised by both the UK and the US as a sovereign state, it was not a British colony, although the last ruler, Charles Brooke, was granted the style of His Highness by Britain’s King George V.
The “white rajahs” were not extractive imperialists – they worked closely with the local chiefs and are remembered mostly fondly. Exhausted and impoverished by the Second World War, however, Charles Brooke handed his kingdom to the British Empire in 1946.
Just under 20 years later, the governments of Britain and the newly independent Federation of Malaya proposed a union between the latter and the UK’s nearby colonial possessions – Singapore, Sarawak and Sabah (also in north Borneo). There was anxiety about whether the last three could be viable on their own, and this was also a time when support for the idea of a “Greater Indonesia” – which would have swallowed up all of them as well as Malaya – was strong.
In 1963, the Malaysia Agreement solved the problem. It united the Federation of Malaya with Singapore, Sarawak and Sabah in a new country – Malaysia. Crucially, it was seen by the three smaller states not as a partnership between equals as such, but almost. For decades, however, Sarawak ended up being treated as just one of Malaysia’s 13 states (as was Sabah) during the long period that the governing Barisan Nasional won every single election. So from being near partners with Malaya, the former sovereign state of Sarawak ended up as though it was just the same as one of the constituent states of the former Federation of Malaya.
That all changed in 2018 when the Barisan lost power and Malaysian politics was completely shaken up. Sarawak and Sabah realised they were now kingmakers – the quarter of seats they held in Malaysia’s parliament were vital for anyone to form a stable government at the federal level. And so since then, Sarawak in particular has been pushing successfully for more and more autonomy – but not independence.
This is the concept of the state nation – which it should be stressed is not the same or as simple as blanket decentralisation.
The problem with nationalists in places like Scotland and Catalonia is that they want their lands to become nation states – and almost no country wants to accept secession of any sort
The problem with nationalists in places like Scotland and Catalonia is that they want their lands to become nation states – and almost no country wants to accept secession of any sort. The state nation accepts the unity of the country, but wants to be seen as a proper entity in its own right. Language is crucial here. When politicians talk of devolution, that comes across as the central state being gracious enough to delegate some powers to the periphery. The state nation asks for the return or restoration of its own rights – which recognises and stresses the natural dignity and autonomy inherent in the state nation, rather than pleading for grudging crumbs from the centre.
I don’t think I’ve heard anyone deny the justice of Malaysia’s Borneo states’ case. For years, the MPs they supplied to the Barisan governments were referred to as “the fixed deposit”, which wasn’t necessarily meant to be derogatory, but it shows how they were taken for granted. And Sarawak especially is really very different from the Peninsula, which it almost equals in size. It is home to at least 34 different ethnicities, with the Iban, known for their traditional longhouses, making up about 30 per cent of the population. They have their own traditions, languages, culture and spiritual beliefs, and most Sarawakians are insistent that they don't want to import the racial and religious issues that often roil the Peninsula.
They have made significant advances in recent years. In 2022, Fadillah Yusof became Malaysia’s first deputy prime minister to come from Sarawak, and earlier that year Abang Johari Tun Openg became the first chief minister of a state to be known by a higher title – that of premier. For Abang Jo, as he is universally known, this will resonate particularly strongly, as his father was one of Sarawak’s signatories to the Malaysia Agreement. He will also be aware of the precedent. From 1963 onwards, all of Malaysia’s constituent states had a chief minister, apart from Singapore, where Lee Kuan Yew retained the title of prime minister.
But Mr Lee, and his city-state, asked for too much. They wanted to change the country as a whole, which is why they were ejected from Malaysia two years later in 1965. Sarawak just wants the ability to have greater control of its own destiny. Not everything is plain sailing, but all of this has been handled so far, both by Prime Minister Anwar Ibrahim in Kuala Lumpur, and by Premier Abang Jo in his state capital, Kuching, in such a friendly and diplomatic way, that I think Mr Saiful’s concept of the state nation and the example of Sarawak could be useful in many other situations.
Could it help reunification between China and Taiwan or Northern Ireland and the Republic of Ireland? Could it be relevant to disappointed nationalists in Scotland and Catalonia, or to the long-running Malay-separatist insurgency in southern Thailand?
At its heart, it’s about respect and recognition. And that, as any mediator or peacebuilder knows, can often be more important than the land, money or laws the dispute is nominally about.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Our family matters legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
6 UNDERGROUND
Director: Michael Bay
Stars: Ryan Reynolds, Adria Arjona, Dave Franco
2.5 / 5 stars
Gifts exchanged
- King Charles - replica of President Eisenhower Sword
- Queen Camilla - Tiffany & Co vintage 18-carat gold, diamond and ruby flower brooch
- Donald Trump - hand-bound leather book with Declaration of Independence
- Melania Trump - personalised Anya Hindmarch handbag
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
The%20specs%3A%202024%20Mercedes%20E200
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%20four-cyl%20turbo%20%2B%20mild%20hybrid%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E204hp%20at%205%2C800rpm%20%2B23hp%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E320Nm%20at%201%2C800rpm%20%2B205Nm%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E9-speed%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E7.3L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENovember%2FDecember%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh205%2C000%20(estimate)%3C%2Fp%3E%0A
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Nepotism is the name of the game
Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.
SANCTIONED
- Kirill Shamalov, Russia's youngest billionaire and previously married to Putin's daughter Katarina
- Petr Fradkov, head of recently sanctioned Promsvyazbank and son of former head of Russian Foreign Intelligence, the FSB.
- Denis Bortnikov, Deputy President of Russia's largest bank VTB. He is the son of Alexander Bortnikov, head of the FSB which was responsible for the poisoning of political activist Alexey Navalny in August 2020 with banned chemical agent novichok.
- Yury Slyusar, director of United Aircraft Corporation, a major aircraft manufacturer for the Russian military.
- Elena Aleksandrovna Georgieva, chair of the board of Novikombank, a state-owned defence conglomerate.
'Of Love & War'
Lynsey Addario, Penguin Press
UEFA CHAMPIONS LEAGUE FIXTURES
All kick-off times 10.45pm UAE ( 4 GMT) unless stated
Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid
Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
Titanium Escrow profile
Started: December 2016
Founder: Ibrahim Kamalmaz
Based: UAE
Sector: Finance / legal
Size: 3 employees, pre-revenue
Stage: Early stage
Investors: Founder's friends and Family
BRAZIL SQUAD
Alisson (Liverpool), Daniel Fuzato (Roma), Ederson (Man City); Alex Sandro (Juventus), Danilo (Juventus), Eder Militao (Real Madrid), Emerson (Real Betis), Felipe (Atletico Madrid), Marquinhos (PSG), Renan Lodi (Atletico Madrid), Thiago Silva (PSG); Arthur (Barcelona), Casemiro (Real Madrid), Douglas Luiz (Aston Villa), Fabinho (Liverpool), Lucas Paqueta (AC Milan), Philippe Coutinho (Bayern Munich); David Neres (Ajax), Gabriel Jesus (Man City), Richarlison (Everton), Roberto Firmino (Liverpool), Rodrygo (Real Madrid), Willian (Chelsea).
Match info
Deccan Gladiators 87-8
Asif Khan 25, Dwayne Bravo 2-16
Maratha Arabians 89-2
Chadwick Walton 51 not out
Arabians won the final by eight wickets
The specs
Engine: 2.4-litre 4-cylinder
Transmission: CVT auto
Power: 181bhp
Torque: 244Nm
Price: Dh122,900
