Sabah’s 40% revenue entitlement: Fahmi says govt should have comprehensive study on court ruling

LocalPolitics
8 Nov 2025 • 9:26 PM MYT
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KOTA KINABALU – The recent court ruling affirming Sabah’s entitlement to 40% of federal revenue collected from the state requires a comprehensive study to ensure all aspects are fully understood and future complications are avoided, according to a spokesperson for the Madani government.

Datuk Fahmi Fadzil, who is also the Communications Minister, stressed the importance of thoroughly examining the ruling to ensure it aligns with the Federal Constitution and upholds the rights of the state as outlined in the Malaysia Agreement 1963 (MA63), Bernama reported.

“The 109-page written judgment was released yesterday afternoon (Friday) and is currently under review by the Attorney General’s Chambers. It is essential to fully grasp the mechanisms involved, ensuring no irregularities or constitutional violations arise,” Fahmi said.

He pointed out that key questions remain, such as the consequences if the study period exceeds 180 days.

“At the moment, the Sabah government is operating as an interim administration, meaning certain policy decisions with financial implications cannot be made,” he added.

Fahmi was speaking to reporters after attending the ‘Hari Bersama Komuniti’ and Youth Engagement programme at the National Information Dissemination Centre (NADI) in Kampung Kopimpinan, Putatan, today. Also present was the Communications Ministry secretary-general, Datuk Seri Mohamad Fauzi Md Isa.

The ruling, handed down by the Kota Kinabalu High Court on October 17, directed the federal government to engage in a review with Sabah to determine the state’s 40% revenue entitlement for each financial year from 1974 to 2021. The review is to begin within 90 days and be concluded within 180 days.

Yesterday, the Gabungan Rakyat Sabah (GRS) Presidential Council issued a joint statement calling on the Federal Government not to appeal the ruling.

Fahmi expressed confidence that Prime Minister Datuk Seri Anwar Ibrahim would offer a thorough evaluation of the matter upon his arrival in Kota Kinabalu tonight for his working visit tomorrow and the following day.

Meanwhile, Fahmi reiterated the Madani Government's commitment to defending Sabah’s rights and ensuring justice for its people. “We will continue to fight for justice for Sabah, a priority that the Prime Minister emphasised in yesterday’s Cabinet meeting,” he said.

The Madani Government, Fahmi noted, has already addressed nine out of the 13 claims under MA63 within three years. It is also the first federal administration to increase interim payments from RM126 million to RM300 million, and then subsequently double the amount to RM600 million. - November 8, 2025

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