PENAMPANG: Chief Minister Datuk Seri Hajiji Noor said 13 demands under the Malaysia Agreement 1963 (MA63) have been fulfilled, with Sabah’s interim share of Federal revenue rising from RM26 million to RM1.5 billion a year, though the State’s full 40 per cent entitlement remains unmet.
“The State Government under my leadership will continue to demand the full implementation of the 40 per cent payment through this process, and we hope the Federal Government fulfils our right, which is the 40 per cent that is our biggest right under MA63,” said Hajiji at the Upko 32nd anniversary dinner reception held at the Hongkod Koisaan, Kadazan Dusun Cultural Association, here, on Sunday.
Hajiji said the 13 MA63 demands fulfilled to date include regulation of energy, deep sea fishing licensing and enforcement, recognition of the State technical departments, namely the Public Works Department and the Department of Irrigation and Drainage under Treasury Instruction 182, administration of the judiciary in Sabah, administration of Sipadan and Ligitan islands, labour and the environment.
He said the State’s entitlement to 40 per cent of Federal revenue is provided for under Articles 112C and 112D of the Federal Constitution.
He said this has yet to be fully implemented, and that a related appeal by the Federal Government is before the Court of Appeal.
In the interim, he said, the State has received a payment that has grown from RM26 million to RM1.5 billion a year, which the State Government intends to direct toward rural roads, bridges, water and electricity supply upgrades, Rumah SMJ housing and public welfare programmes.
Hajiji said the State’s position will continue to be raised with the Federal Government, including at the MA63 Technical Committee meeting held on August 3, which was attended by Deputy Chief Minister III Datuk Ewon Benedick as part of the Sabah state delegation.
Additionally, Hajiji said Sabah’s annual revenue collection is projected to reach RM8 billion in 2026, building on more than RM7 billion collected yearly since 2022, as the State recorded RM7.6 billion in manufacturing sector investments in 2025 alone, an increase of nearly 208 per cent compared with 2024.
“All these government efforts are aimed at building the people’s economic prosperity through the creation of job opportunities for the children of Sabah, as well as spillover economic activity among micro, small and medium enterprises through high value investment in Sabah,” he said.
He said the State, through its Commercial Collaborative Agreement with Petronas, has increased its equity stake in oil and gas exploration and development in Sabah, alongside greater participation by local Sabah companies in the industry.
He said the state is finalising a 40 per cent equity stake in a Floating Liquefied Natural Gas (FLNG) facility project in Sabah, and expects to secure an additional 30 per cent stake in two new oil and gas fields on the East Coast, with the partnership agreement expected to be signed soon.
He said the State Government will also develop new industrial parks, including in Kota Belud, as well as a Blue Economy Hub in Kudat, to further boost investment in the State.
