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THE much-discussed 40 per cent federal revenue entitlement confirmed by a recent High Court decision applies solely to Sabah and does not extend to Sarawak, clarified Deputy Minister in the Sarawak Premier’s Department (Law, State-Federal Relations and MA63), Dato Sri Sharifah Hasidah Sayeed Aman Ghazali.
She addressed growing public confusion following the Kota Kinabalu High Court’s landmark ruling, which upheld Sabah’s constitutional right to a 40 per cent share of net federal revenue collected from the state.
“This ruling is specific to Sabah. Sarawak has no equivalent provision in the Federal Constitution entitling us to a 40 per cent revenue return,” she said in a statement.
Nonetheless, she described the judgment as highly significant for Sarawak’s own financial entitlements, particularly with regard to the federal government’s constitutional obligation to review special grants every five years.
“Although the circumstances between Sarawak and Sabah differ, with Sabah having a specific constitutional provision relating to the 40 per cent entitlement, the underlying principle remains consistent. A review of our special financial grants must be carried out every five years,” she stressed.
Sharifah Hasidah added that the Court’s findings underscored the expectation that such reviews be conducted “in good faith, transparently, and without undue delay”.
She noted that Sarawak has already submitted its proposed formula for the special grant under Article 112D of the Federal Constitution through the ongoing Malaysia Agreement 1963 (MA63) negotiation framework.
“This judgment should serve as a clear signal to the federal government to expedite negotiations and finalise the terms of Sarawak’s Special Grant,” she said.
“We know the road ahead is long and challenging but the Sarawak government remains committed to protecting Sarawak’s constitutional rights and we will continue to engage with the federal government in the spirit of cooperation and the MA63,” she added.
On Thursday, the Kota Kinabalu High Court ruled in favour of the Sabah Law Society, declaring that the federal government had breached the Constitution by failing to honour Sabah’s 40 per cent revenue entitlement for nearly five decades.
High Court Judge Datuk Celestina Stuel Galid described the joint review orders issued by the federal and Sabah governments as “unlawful, ultra vires and irrational”, and ruled that they had contravened Article 112C and 112D of the Constitution. - October 18, 2025