Kuala Lumpur: The Federal Government has been urged to implement Sabah’s 40 per cent net revenue entitlement on an annual basis beginning 2027 and establish a clear settlement framework for past arrears.
Tuaran Member of Parliament Datuk Seri Wilfred Madius Tangau (pic) said while the RM1.5 billion interim special grant announced in Budget 2027 is appreciated, it neither constitutes a final settlement of the constitutional entitlement nor resolves the accumulated backlog.
Debating the supply bill in the Dewan Rakyat, he called on Putrajaya to disclose the net revenue derived from Sabah annually from 1971 to 2026, including tax yields from companies operating in the state but registered in Peninsular Malaysia or Sarawak.
To ensure transparency, Madius proposed a joint federal-state mechanism with full revenue data access, alongside an audit by the Auditor-General on the entitlement calculations covering the 1971–2026 period.
He stressed that payments starting from 2027 must be separated from historical arrears, adding that federal development allocations should not be used as an excuse to disregard the constitutional entitlement guaranteed under the Federal Constitution.
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