Malaysia Oversight

Govt made correct call not to appeal Sabah 40% revenue ruling, says BN

By theStar in November 12, 2025 – Reading time 2 minute
Govt made correct call not to appeal Sabah 40% revenue ruling, says BN



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PETALING JAYA: The Federal Government’s decision not to appeal the recent High Court ruling affirming Sabah’s right to 40% of net revenue derived from the state is the right move, says Barisan Nasional.

Coalition chairman Datuk Seri Dr Ahmad Zahid Hamidi said the move is in line with the spirit of federalism and respects Sabahans’ rights as enshrined in the Malaysia Agreement 1963 (MA63).

“Barisan welcomes the decision that respects the special grant principles as stated in the Federal Constitution,” he said in a statement on Wednesday (Nov 12).

Ahmad Zahid, who is also Deputy Prime Minister, said Barisan acknowledges the decision from the special Cabinet meeting, which will begin discussions with the Sabah state government to ensure the special grant can be materialised transparently.

He said Barisan would continue to fight for the rights of Sabah and other states on a negotiation framework based on the Constitution to ensure Malaysia remains stable, prosperous and inclusive.

“Barisan has always prioritised the importance of Sabahans in defending their rights as enshrined in treaties and constitutions.

“We also strived to ensure every commitment of the Federal Government to the state is implemented fairly and responsibly,” he said.

On Tuesday (Nov 11), the Attorney General Chambers (AGC) said that the Federal Government would not appeal the recent High Court ruling affirming Sabah’s right to 40% of net revenue derived from the state.

The AGC, however, disputed the court’s reasoning behind the judgment with regard to the abuse of powers by the Federal Government and failing to keep obligations since 1974.

On Oct 17, the Kota Kinabalu High Court ruled in favour of the Sabah Law Society (SLS) judicial review.

The court decided that the Federal Government had acted unlawfully by failing to fulfil Sabah’s constitutional entitlement to 40% of the net federal revenue derived from the state for nearly five decades.

The Federal Government must commence negotiations and review the grant due for the lost years within 90 days of the court’s decision.

 

 

 

 



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