40pct revenue: Sabah leaders urge Sabahans to have faith in PM, Madani govt

By NST in November 11, 2025 – Reading time 3 minute

KOTA KINABALU: Sabah leaders welcomed the federal government’s decision not to appeal the Kota Kinabalu High Court ruling on the state’s 40 per cent revenue entitlement, urging Sabahans to place their trust in Prime Minister Datuk Seri Anwar Ibrahim and the Madani government.

Parti Bersatu Rakyat Sabah (PBRS) president Datuk Seri Arthur Joseph Kurup said the decision demonstrated not only respect for Sabah’s constitutional rights but also the federal government’s full support for the state’s development.

“I urge Sabahans to have faith in our PM and in this unity government, which has shown over and over again its genuine effort to help develop and protect Sabah,” he said in a statement here tonight.

Today, the Attorney-General’s Chambers (A-GC) in a statement said 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.

Earlier, Chief Minister Datuk Seri Hajiji Noor said in a statement that the federal government’s decision not to appeal the High Court’s ruling relating to Sabah’s 40 per cent revenue rights showed that Anwar understands the hopes and aspirations of Sabahans.

Meanwhile, Arthur cited the government’s victory at the International Court of Justice against claims to Sabah by the Sulu group as one example of such commitment, alongside greater state autonomy granted to Sabah for implementing projects under RM50 million and below.

He said that federal-state relations were vital, calling for unity as one federation to promote harmony in multi-racial and multi-religious Malaysia.

Sabah Barisan Nasional (BN) chairman Datuk Seri Bung Moktar Radin emphasised that the 40 per cent revenue entitlement was a constitutional right that was non-negotiable and non-delayable.

“This decision affirms a fundamental legal truth that Sabah’s 40 per cent revenue entitlement is not a political concession.

“It is a constitutional obligation that has been left unfulfilled for decades,” he said.

Bung Moktar said the 40 per cent provision was a binding constitutional commitment embedded in the Federal Constitution since Malaysia’s formation in 1963, adding that administrative lapses since 1974 had undermined federalism principles.

He said any negotiations must be transparent, grounded in verified financial data, and free from political manoeuvring, warning that Sabah would no longer accept discussions leading nowhere.

“Sabah BN will scrutinise every stage of this process.

“The federal government’s duty is clear and indivisible…restore Sabah’s entitlement without delay.

“This is not a political gimmick but a demand for constitutional justice. Sabah BN stands firm, the 40 per cent is Sabah’s right,” he added.

Sabah PKR Leadership Council chairman Datuk Mustafa Sakmud, who welcomed the historic decision, described it as a turning point for fiscal justice that the people of Sabah have been waiting for nearly 50 years.

“This decision proves the Madani government’s commitment to respecting the spirit and soul of the 1963 Malaysia Agreement (MA63) is not just on paper, but translating it into bold and principled actions,” he said.

He also welcomed the federal government’s decision to begin negotiations with the Sabah government to ensure the fair, transparent, and lawful implementation of the 40 per cent revenue distribution mechanism.

On Oct 17, the Kota Kinabalu High Court ruled that the federal government acted unlawfully and beyond its constitutional powers when it failed to fulfil Sabah’s rights to 40 per cent of federal revenue for the years 1974 to 2021.

– Bernama

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