Malaysia Oversight

AGC to review Kota Kinabalu High Court ruling on Sabah’s 40pc revenue rights

By MalayMail in November 8, 2025 – Reading time 2 minute
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KUALA LUMPUR, Nov 8 — The Attorney General’s Chambers (AGC) has confirmed receiving the Kota Kinabalu High Court’s written judgment on Sabah’s claim for its Special Grant for the years 1974 to 2021.

In a statement, the AGC said it would examine the court’s reasoning before deciding on the next course of action.

“The department will conduct a thorough review of the judgment and consider all relevant legal aspects before taking any further action,” it said yesterday.

Earlier, the court ruled the federal government had acted unlawfully and exceeded its constitutional powers by failing to fulfil Sabah’s entitlement to 40 per cent of federal revenue over nearly five decades.

Judge Datuk Celestina Stuel Galid, who delivered the decision, described the special grant arrangement between the federal and Sabah governments as “invalid, ultra vires, and irrational,” and in breach of the Federal Constitution.

The court found it unconstitutional for the federal government to issue the special grant as defined under the Tenth Schedule of the Constitution.

In its ruling, the court also declared the Second and Third Review Orders issued by both governments invalid, allowing in full the application by the Sabah Law Society (SLS).

The court further issued a mandamus order directing the Federal Government to conduct a revenue review with the Sabah Government under Article 112D of the Federal Constitution to reinstate Sabah’s 40 per cent revenue entitlement for each financial year from 1974 to 2021.

Under the order, the review must be conducted within 90 days, with both governments required to reach a mutual agreement within 180 days from the date of the order.

 



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