‘No guarantee future government will honour RM1.5 billion payment’

LocalPolitics
6 Aug 2026 • 7:47 AM MYT
Daily Express
Daily Express

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‘No guarantee future government will honour RM1.5 billion payment’

Kota Kinabalu: The RM1.5 billion interim special grant for Sabah relies entirely on political will rather than constitutional protection, cautioned Parti Warisan Sabah.

“Anything gazetted by the current Parliament can be un-gazetted, amended or allowed to lapse by a future Parliament using the exact same procedure,” said its State Strategic Communication Director Christopher Masudal said.

He was responding to a statement by Minister in the Prime Minister’s Department (Sabah and Sarawak Affairs) Datuk Mustapha Sakmud, who said the grant would transition into a “guaranteed annual disbursement” once tabled in Parliament and gazetted with the Yang di Pertuan Agong’s consent.

While welcoming any increase from the previous RM600 million, Masudal questioned the long-term security of the mechanism, emphasising that a gazetted measure is not a constitutional entrenchment.

He noted a fundamental distinction where Sabah’s 40 per cent net revenue entitlement is anchored in the Federal Constitution, whereas the interim payment is an administrative allocation that depends on whichever coalition holds power in Putrajaya.

Referring to warnings by Larry Sng regarding a potential shift in federal power, such as BN/PN securing a simple majority, Masudal warned that a new coalition could easily reduce the grant under fiscal pressures to address national debt.

“If a new coalition argues that federal debt accumulated during PMX’s term requires cuts across healthcare, education and defence, no legal mechanism exists to prevent them from reducing Sabah’s interim grant from RM1.5 billion down to RM400 million,” he said, adding that GRS leaders would lack leverage to resist such pressure since the arrangement applies solely to Sabah and not Sarawak.

Recalling the history of MA63 negotiations, Masudal claimed that while Umno/BN’s Devolution of Powers Committee opened early discussions, substantive progress only occurred under Warisan in 2018 alongside Sarawak parties and Pakatan Harapan, who had actively campaigned on MA63 prior to GE14.

He said Prime Minister Datuk Anwar Ibrahim was absent from that pre-GE14 campaign, which he believes explains why the administration’s commitment feels transactional.

“The clearest proof of this divide is the Federal Government’s choice to appeal the Sabah High Court ruling on the entitlement —a move inconsistent with an administration that considers the matter resolved in Sabah’s favour,” Masudal said, adding that some federal-centric leaders view East Malaysian rights as outdated privileges.

Masudal said it is vital to recall how this point was reached. “Umno/BN’s Devolution of Powers Committee, co-chaired by Anifah Aman and Nancy Shukri, initiated discussions on MA63 yet activists viewed it as cosmetic rather than substantive.

“Real progress occurred under Warisan in 2018, when the 40 percent entitlement and MA63 were addressed at the highest levels through a joint committee comprising Sarawak parties, Warisan, and Pakatan Harapan — all of whom had actively campaigned on these commitments prior to GE14 (and affirmed MA63 in the Buku Jingga).

“That shared history kept the issue alive, despite the Sheraton Move disrupting a settlement that was on track within five years,” he said.

To consider the commitment durable rather than provisional, Masudal outlined three key conditions for the Federal Government:Withdraw its appeal against the Sabah High Court ruling on the 40% entitlement to prevent future governments from delaying a final settlement.

Settle all outstanding financial arrears accumulated from 2022 onward.

Enshrine the RM1.5 billion interim payment directly into the Federal Constitution for a specified duration while negotiations proceed.

Highlighting that the 40 per cent entitlement is rooted in Article 112C and the Tenth Schedule of the Federal Constitution, Masudal cautioned that without constitutional safeguards, the interim arrangement remains vulnerable to the outcome of the next general election.

Masudal reminded that without these safeguards, today’s gazette remains vulnerable to the outcome of the next general election.

While he hope to be proven wrong, hope cannot replace a constitutional guarantee and Sabahans cannot afford to accept verbal assurances at face value.

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