Malaysia Oversight

Anwar’s remarks on Sabah’s 40pc entitlement reflect ‘serious misunderstanding’ of state’s constitutional rights, says lawyer

By MalayMail in November 10, 2025 – Reading time 3 minute
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KOTA KINABALU, Nov 10 — Former Sabah Law Society (SLS) president Datuk Roger Chin today said Prime Minister Datuk Seri Ibrahim’s recent remarks on Sabah’s 40 per cent entitlement reflected “a serious misunderstanding” of the state’s constitutional rights.

Chin said the federal government should not confuse its ordinary development spending with its constitutional obligation under Article 112C of the Federal Constitution.

“Money spent on schools, hospitals, roads, or security is part of the federal government’s duty to all Malaysians under the federal system — not part of the 40 per cent special grant owed specifically to Sabah,” he said in a statement today.

He pointed out that the Kota Kinabalu High Court had, in its October ruling, affirmed that the 40 per cent entitlement was a constitutional right and not a matter for negotiation, representing 40 per cent of the net federal revenue derived from Sabah.

“When the Prime Minister says RM10 billion was collected and RM17 billion was ‘given back,’ he is mixing two separate accounts — federal expenditure and constitutional repayment,” Chin said.

“That comparison is meaningless unless the government publishes a clear breakdown showing how much was collected from Sabah, how much was returned under Article 112C, and how much was spent on ordinary federal functions.”

Chin said that until such figures are disclosed, “no one can truthfully say that Sabah has received more than it gave.”

“The Constitution is not about generosity. It is about obligation, transparency, and respect for the promises that built Malaysia,” he added.

Responding to ‘s challenge for Sabahans to “come with facts and figures” to discuss the 40 per cent issue, Chin called the statement “patronising” and said it underestimated the intelligence of Sabahans.

“How can Sabahans present figures when the federal government itself refuses to release the data? If truly believes in facts, then disclose them — show the revenue, show the deductions, show the payments,” he said.

“Until that happens, telling Sabahans to ‘come with facts’ is nothing more than mocking the very ignorance the federal government has deliberately imposed for its own convenience and gain.”

On October 17, the Kota Kinabalu High 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 further issued an 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.

The ruling has ignited local sentiments across the state as it heads into its 17th state election and puts pressure on the federal government and national-based parties to align with state interests.

 



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