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THE Madani government has made notable progress in addressing Sabah’s longstanding claims under the Malaysia Agreement 1963 (MA63), Prime Minister Datuk Seri Anwar Ibrahim announced during a special session in the Dewan Rakyat.
He explained that the Technical Committee under the MA63 Implementation Council, chaired by Deputy Prime Minister Datuk Seri Fadillah Yusof, has settled 13 claims relating to the agreement.
“Among the agreed claims between the federal government and the Sabah state government is the transfer of regulatory control over electricity and Sabah Electricity Sdn Bhd to Sabah, while the federal government continues to provide RM1.2 billion to ensure the uninterrupted supply of electricity in Sabah,” said Anwar.
Turning to recent legal developments, the Prime Minister stated that the Madani government respects the judicial process following the Kota Kinabalu High Court’s ruling on 17 October concerning the review of Sabah’s special federal grant.
“We take note of the Kota Kinabalu High Court’s decision and will examine the written grounds of the judgment once they are received, as they have not yet been provided. This will be done in accordance with the advice of the Attorney-General, in the best interests of Sabah and Malaysia as a whole,” he said.
The court’s ruling requires both the federal and Sabah governments to undertake a review under Article 112D of the Federal Constitution regarding Sabah’s 40 per cent entitlement of federal revenue. The Attorney-General’s Chambers will assess the ruling before any further action is taken.
Anwar also revealed that both governments are in the process of developing a new framework for determining future special grant calculations for Sabah. He noted that previous reviews were carried out and officially gazetted in 2022, 2023, and 2025, in line with constitutional requirements.
“The special grant for Sabah remained fixed at RM26.7 million until 2021. In 2019, the Sabah government agreed to increase the grant to RM53.4 million. A subsequent review in 2022 resulted in a mutual agreement to raise the amount to RM125.6 million,” he added.
This ongoing cooperation illustrates the Madani government’s dedication to upholding Sabah’s rights under MA63 while ensuring that legal and financial frameworks remain equitable and transparent. - October 22, 2025