Malaysia Oversight

Sabah in stronger position after decision on 40% revenue rights, says Salleh

By FMT in November 12, 2025 – Reading time 2 minute
Salleh hails court ruling on Sabah’s right to 40% federal revenue share


Salleh Said Keruak
Former Sabah chief minister Salleh Said Keruak said the state’s focus should now be on conducting professional and transparent negotiations that prioritise the interests of the people. (Bernama pic)
PETALING JAYA:

Sabah will enter negotiations with the federal government on a stronger footing following the federal government’s confirmation that it will not appeal a High Court ruling on Sabah’s 40% revenue entitlement, says its former chief minister Salleh Said Keruak.

Salleh said Sabah’s focus should now be on conducting professional and transparent negotiations that prioritise the interests of the people, ensuring long-term benefits for the state’s development and future generations.

“With this (latest) development, Sabah enters the negotiation phase from a clearer and more structured position, based on legal foundations confirmed by the court,” said Salleh.

“While the Attorney-General’s Chambers (AGC) will file a limited appeal on certain technical aspects of the judgment, such as procedural irregularities and historical allegations of abuse of power dating back to 1974, Sabah’s 40% entitlement remains unaffected.”

The Kota Kinabalu High Court last month ruled that the federal government acted unlawfully by failing to honour Sabah’s 40% share of federal revenue derived from the state for nearly five decades, directing to conduct a review with Sabah to determine the state’s 40% entitlement for each financial year from 1974 to 2021.

The court also ordered that the review must commence within 90 days and be completed within 180 days.

In a statement today, the AGC said it would not appeal the 40% revenue entitlement and would conduct negotiations with the Sabah state government immediately.

The AGC said its decision not to appeal the 40% revenue entitlement followed a special Cabinet meeting held today to discuss the Oct 17 High Court ruling, which came after a judicial review filed by the Sabah Law Society against the federal government.



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