KUALA LUMPUR: Barisan Nasional (BN) has welcomed the federal government’s decision to uphold the principle of the 40 per cent special grant for Sabah as enshrined in the Federal Constitution.
Its chairman, Datuk Seri Dr Ahmad Zahid Hamidi, said the government’s decision not to appeal the entitlement reflects respect for the spirit of federalism and the rights of the Sabah people guaranteed long ago.
“BN takes note of the decision made during the Special Cabinet Committee meeting, which will soon resume discussions between the federal and Sabah governments to ensure that the implementation of the special grant can be realised with full responsibility and transparency,” he said in a statement today.
On Oct 17, the Kota Kinabalu High Court ruled that the federal and Sabah governments must conduct a review of the Sabah Special Grant from 1974 to 2022 under Article 112D of the Federal Constitution.
The review is meant to give effect to the Federation’s obligation to make the 40 per cent entitlement payment to Sabah under Article 112C, read together with subsection (1) of Section 2 of Part IV of the Tenth Schedule of the Constitution, for each financial year from 1974 to 2021.
Yesterday, the Attorney-General’s Chambers (A-GC), in a statement, said the federal government would not appeal the High Court’s ruling on Sabah’s 40 per cent revenue entitlement.
https://www.nst.com.my/news/nation/2025/11/1312975/updated-federal-govt-will-not-appeal-sabahs-40pct-revenue-entitlement
A special cabinet meeting was held yesterday to discuss the judgment in a judicial review filed by the Sabah Law Society against the federal government.
Negotiations with the Sabah state government are expected to begin immediately.
Zahid added that BN has always prioritised the welfare of Sabahans by upholding the rights enshrined in the Malaysia Agreement and the Federal Constitution, ensuring that every federal commitment to the state is carried out fairly and accountably.
“BN will continue to consistently champion the rights of Sabah and other states within the framework of the law and the spirit of the Constitution, to ensure Malaysia remains stable, prosperous and inclusive,” he said.
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