Malaysia Oversight

As court orders MA63 grant review, Sabah DAP MP urges full disclosure of federal revenue from state

By MalayMail in October 23, 2025 – Reading time 2 minute
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KOTA KINABALU, Oct 23 — Kota Kinabalu MP Datuk Chan Foong Hin has called on the federal government to disclose the actual amount of federal revenue collected from Sabah to promote transparency and good faith in the ongoing review of the state’s 40 per cent revenue entitlement.

Chan, who is also the deputy plantation and commodities minister, said the information would prevent “misunderstanding or misrepresentation” and promote accountability as both the federal and state governments work toward resolving the long-standing issue of special grants owed to Sabah under the Malaysia Agreement 1963 (MA63).

“It is timely for the Ministry of Finance to disclose the actual amount of federal revenue collected from Sabah, to promote transparency and prevent any misunderstanding or misrepresentation by other parties,” he said in a statement today.

He noted that both governments are in the process of formulating a new mechanism to determine the future calculation of the Special Grant, consistent with the principles and spirit of MA63.

Chan added that the review process should be led by the Technical Committee under the MA63 Implementation Action Council (JKTMTPMA63) within the 90-day timeframe set by the Kota Kinabalu High Court in its recent decision last Friday.

Following a special briefing by Prime Minister Datuk Seri Ibrahim yesterday morning, Chan said the federal government had reaffirmed its commitment to respecting the legal process and to studying the written judgment carefully before deciding whether to appeal.

He said it was now time for both the federal and state governments to work “in unity and good faith” to ensure that Sabah’s constitutional rights under MA63 were upheld through “genuine dialogue, mutual trust, and transparent implementation.”

The Kota Kinabalu High Court’s ruling on October 17 said that the federal government had acted unlawfully by failing to fulfil Sabah’s constitutional right to 40 per cent of net federal revenue collected from the state over the past five decades.

According to the judgment, the court issued an order compelling to review the revenue-sharing arrangement with the Sabah government and to reach an agreement on the state’s 40 per cent entitlement for each financial year from 1974 to 2021 within 180 days.

Since the ruling, almost all political parties have urged the federal government not to appeal the court’s decision.

Sabahans have celebrated what many have hailed as a landmark judgment after decades of struggle to regain their “lost years” of revenue.

In Parliament, several Sabah MPs voiced support for the federal government’s pledge to strengthen good governance and accountability in upholding the state’s constitutional rights, but many stressed that transparency and consistent follow-through were key as the state still lagged behind in terms of infrastructure and economic development.

 



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