Malaysia Oversight

Federal Gov’t Will Not Appeal 40 Per Cent Special Grant Ruling, Negotiations With Sabah To Begin – AGC

By Bernama in November 11, 2025 – Reading time 2 minute
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, Nov 11 (Bernama) — The Federal Government has decided not to file an appeal against the decision relating to the Special Grant based on the 40 per cent revenue share for Sabah, as provided for under the Federal Constitution, according to a statement by the Attorney-General’s Chambers (AGC).

Accordingly, the AGC said the Federal Government would begin the negotiation process with the Sabah Government as soon as possible.

“A special Cabinet meeting held today discussed the Kota Kinabalu High Court judgment relating to the Sabah Special Grant that was decided in the judicial review application by the Sabah Law Society against the Malaysian Government,” the statement said.

The AGC said the Federal Government respected the principle of the 40 per cent Special Grant enshrined under the Federal Constitution.

At the same meeting, the Attorney-General also provided advice and views to the Cabinet regarding several defects in the judgment’s reasoning, including allegations that the Federal Government and the Sabah Government had abused their powers and breached constitutional obligations said to have involved both governments since 1974.

— BERNAMA 


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