PENAMPANG: The Kadazandusun Chamber of Commerce and Industry (KCCI) said the recent High Court ruling affirming Sabah’s 40 per cent revenue entitlement could mark the end of the State’s long struggle with underfunding that has hampered its development for decades.
KCCI President Datuk Ladislaus Maluda described the decision, which upheld Sabah’s constitutional right to 40 per cent of federal revenue collected in the State, as both a landmark legal victory and a potential economic turning point for Sabah.
“For far too long, Sabah has depended on a narrow revenue base, resulting in inconsistent and insufficient funding for development.
“This has hindered improvements in essential sectors such as roads, water supply, electricity, communications, health and education,” he said in a statement Monday.
Ladislaus said chronic underfunding has contributed to Sabah remaining Malaysia’s second poorest state, with four of the country’s poorest districts.
He hoped the ruling would now allow Sabah to secure a sustainable financial stream to drive economic, social and educational growth.
He added that Sabah’s rich natural resources, including fertile lands, diverse cultures, tourism potential, minerals, agriculture and forests , justify the State’s entitlement.
“The court’s affirmation of this right is both a legal and moral victory for the people of Sabah,” he said.
Calling the ruling “a historic and significant milestone in Sabah’s history,” Ladislaus said it restores overdue recognition of the State’s rights under the Malaysia Agreement 1963 (MA63).
“After more than 60 years of independence through the formation of Malaysia, the judiciary has finally affirmed the legitimacy of Sabah’s claim,” he added.
Beyond its legal impact, he said the decision strengthens public confidence in national institutions, particularly the judiciary, and reinforces Sabahans’ belief in Malaysia as a federation of equal partners.
“More importantly, it lays the groundwork for balanced development among states as financial capacity improves,” he said.
In the spirit of MA63, Ladislaus urged the Federal Government to respect and accept the ruling without filing an appeal, saying recognition of Sabah’s entitlement would strengthen national unity and foster a stronger Malaysian nation.
He also commended the Sabah Law Society for leading the legal initiative and thanked all parties who supported the effort.
Ladislaus urged all stakeholders to act swiftly in implementing the court’s decision, noting that the High Court had invalidated the previous interim payment mechanism.
“It is crucial that steps are taken immediately to realise the benefits of this ruling so that Sabah and its people can enjoy its fruits without delay,” he said, adding that the decision should serve as common ground for unity and as a guiding light for Sabah’s continued progress and development.
