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LEADERS of Pakatan Harapan (PH) in Sabah have called on the Federal Government to respect the timeline set by the High Court last year regarding the state’s claim to 40 per cent of net revenue derived from Sabah.
The issue was raised by representatives from PKR, DAP, and AMANAH during a PH Sabah meeting chaired by Minister in the Prime Minister’s Department (Sabah and Sarawak), Datuk Mustapa Sakmud, who was recently appointed as the coalition’s Sabah chairman. The leaders emphasised the importance of resolving the matter in line with the deadlines established in the court’s ruling.
“I have listened carefully to the concerns of party leaders, who are deeply attentive to this issue and are asking for it to be resolved according to the timeline set by the court. As Minister in the Prime Minister’s Department tasked specifically as secretariat for the MA63 Action Council, I will bring these sentiments to the technical committee and the upcoming Cabinet meeting,” Datuk Mustapa told reporters following the meeting.
The High Court of Kota Kinabalu, on 17 October last year, ruled that the Federal Government had acted unlawfully and exceeded its constitutional powers by failing to honour Sabah’s entitlement to 40 per cent of the state’s net revenue for the period 1974 to 2021.
The court ordered a review to be conducted within 90 days and for an agreement to be reached within 180 days of the judgment.
The 90-day review period concluded in January, while the timeframe for the Federal and Sabah state governments to finalise an agreement on tax repayment is set to expire in April this year.
Datuk Mustapa, who is also PKR Sabah chief, said the Cabinet has strengthened the negotiation process for the MA63 Action Council by appointing Minister of Domestic Trade and Cost of Living, Datuk Armizan Mohd Ali, and Minister of Natural Resources and Environment, Datuk Arthur Joseph Kurup, to the main technical committee.
“A technical committee meeting will be held on 23 February, involving representatives from the Federal Government as well as the Sabah and Sarawak state governments, and will be chaired by the Deputy Prime Minister, Datuk Seri Fadillah Yusof,” he said.
Addressing the so-called “lost years” — referring to the absence of payments from the Federal Government to Sabah from 1974 to 2021 — Datuk Mustapa said the coalition will seek updates from the Ministry of Finance.
“We will receive updates from the Ministry of Finance and hear their report for further discussion. To date, two committee-level meetings have been conducted, co-chaired by the Sabah State Secretary and the Chief Secretary to the Treasury, and a special committee has been formed to examine matters including the ‘lost years’. We will review their findings shortly,” he added.
Deputy PH Sabah chairman Jin Zhe stressed that the matter must be fully resolved according to the court-mandated timeline, reflecting the expectations of the people of Sabah.
“Everyone is awaiting this outcome, so we cannot treat this matter lightly. It is extremely critical. Our analysis shows that it is a major issue that the people of Sabah expected to be addressed during the 17th Sabah State Election,” he said.
The call from PH Sabah comes amid growing public attention on the state’s long-standing claims under the Malaysia Agreement 1963, highlighting the urgency of resolving historical financial entitlements and ensuring compliance with judicial directives. - February 16, 2026