Malaysia Oversight

Warisan hopes federal govt won’t appeal Sabah revenue ruling

By FMT in October 17, 2025 – Reading time 2 minute
Warisan going solo in Sabah polls, Shafie says it again


Mohd Shafie Apdal
Warisan president Shafie Apdal said the Federal Constitution also outlines how the revenue reimbursement should be made to Sabah.
PETALING JAYA:

Warisan has expressed hope that the federal government would not appeal against the High Court ruling regarding the state’s claims to a 40% share of net federal revenue.

The party’s president Shafie Apdal told a press conference at Warisan headquarters in Kolombong today that the court’s judgement was clear and reinforced the need to revisit provisions enshrined in the Federal Constitution, the Borneo Post reported.

He said the Federal Constitution also outlines how the revenue reimbursement should be made to Sabah.

Shafie said that Sabah, in the spirit of Malaysia’s formation, was entitled to a 40% of net revenue collected by the federal government in the state.

“Of course, under the constitution, the federal government is allowed to appeal the decision, but we hope that they do not, as it could create various speculations and doubts. This is very important to us,” he was quoted as saying.

Warisan Supreme Council member Chen Ket Chuin, who welcomed the ruling, pointed out that the case was pursued by the Sabah Law Society and not the current GRS–PH state government.

He urged the federal and state governments to implement the court’s directives without delay and to carry out the revenue review in a transparent and fair manner.

“Sabahans deserve full accountability, not more delays. Warisan will continue to champion Sabah’s rights and autonomy,” Chen said in a statement.

The Kota Kinabalu High Court today ruled that the federal government acted unlawfully by failing to honour Sabah’s 40% share of net federal revenue for nearly five decades.

The decision came on an application for a judicial review filed by the Sabah Law Society in 2022. The society contended that the federal government had breached the Federal Constitution by failing to conduct a mandatory revenue review every five years since 1974.

Under the 10th Schedule of the constitution, Sabah is entitled to a special grant equal to 40% of the amount by which the net federal revenue derived
from Sabah exceeds the net revenue derived in 1963.

The constitution also provides for the federal government and the state governments to review the special grant every five years, or longer period as agreed, after 1974.

The revenue-sharing formula has been a contentious issue for decades. Sabah politicians have called for the federal government to honour the state’s entitlement, as agreed in 1963, to 40% of net revenue derived from Sabah.

Use of the formula had been suspended since 1974, with the federal government paying increased special grants to Sabah and Sarawak instead.



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