A good-faith attitude from the Sabah government is crucial for negotiations on the 40% revenue entitlement to proceed effectively, Prime Minister Anwar Ibrahim said today.
Speaking in the Dewan Rakyat, he said certain parties were approaching negotiations more rationally and were ready for constructive engagement.
“This is why we say that negotiations can take place when relations are good.
“And if I may, find a state government that adopts a good-faith attitude so that negotiations can proceed more smoothly and quickly,” he said in explaining the federal government’s decision not to appeal the Sabah 40% revenue court ruling.
Anwar also stressed the need for unity and solidarity, warning that inflaming issues, inciting communal sentiments, or provoking divisions would ultimately harm the people.
“The only ones who benefit are those at the top, while the people are left without water, without electricity, and trapped in hardship,” he said.
The Attorney-General’s Chambers (AGC) announced on Tuesday that the federal government would not appeal the court’s decision affirming Sabah’s 40% entitlement to federal revenue earned in the state, as provided for in the Federal Constitution.
However, the AGC said the government intended to challenge other “defects” in the grounds of judgment.
The Kota Kinabalu High Court had also ruled that a post-2021 review conducted by the government on the state’s entitlement was illegal, irrational, procedurally improper and disproportionate, for which the AGC said an appeal was necessary.
Sabah caretaker chief minister Hajiji Noor had expressed the state’s gratitude to Anwar and the Cabinet for their decision not to appeal the High Court ruling.
Hajiji said the state government remained ready to engage constructively with Putrajaya to implement the court’s directive to review and finalise the agreement, and called on the public to continue supporting Anwar’s leadership.
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 on in 1963.
Use of the formula had been suspended since 1974, with the federal government providing increased special grants to Sabah and Sarawak instead.
