The federal government will honour Sabah’s entitlement to 40% of the revenue derived from the state, Prime Minister Anwar Ibrahim affirmed today.
He also said Putrajaya was not seeking to deceive Sabahans but was committed to resolving the matter transparently and comprehensively, Daily Express reported.
However, he said the opposition had politicised the issue, using it as campaign fodder for the Nov 29 state election.
“They claim the government is appealing, implying it is wrong.
“Elections are not the place for deception. There are parties that were previously in government, even in the Cabinet, who know that the appeal relates to the grounds of judgment.
“We are not appealing against the 40%. The attorney-general has also clarified that there will be no appeal on the 40% issue. I even mentioned in Parliament that we will not file an appeal on that,” he was quoted as saying.
The prime minister said Putrajaya is now focused on technical talks to determine Sabah’s actual revenue and the exact amount of the 40% special grant, in line with the Federal Constitution.
Treasury secretary-general Johan Mahmood Merican will be in Sabah tomorrow for discussions with the state secretary, he added.
“We need to discuss the parameters, details and technical aspects. Before that, deputy prime minister Fadillah Yusof will also chair a meeting.
“We need to study Sabah’s actual revenue, the actual value of the 40% and the government’s financial capacity. This is not empty talk,” Anwar said.
The revenue-sharing formula has been a contentious issue for decades. Sabah politicians have long called for the federal government to honour the entitlement to 40% of net revenue derived from the state, as agreed upon in 1963.
Use of the formula had been suspended since 1974, with the federal government providing increased special grants to Sabah and Sarawak instead.
Last month, the Kota Kinabalu High Court affirmed Sabah’s 40% entitlement to federal revenue earned in the state, as provided for in the Federal Constitution.
The court also ruled that a post-2021 review conducted by the government on the state’s entitlement was illegal, irrational, procedurally improper and disproportionate. The Attorney-General’s Chambers said an appeal was necessary to clarify this.
