
Kota Kinabalu: The State Government Friday welcomed the High Court’s decision to allow Sabah Law Society’s (SLS) judicial review application concerning Sabah’s constitutional right to the 40 per cent special grant from the Federal Government as agreed under the Malaysia Agreement.
Chief Minister Datuk Seri Hajiji Noor said the ruling reaffirms Sabah’s rights as enshrined in the Federal Constitution, particularly under Articles 112C and 112D.
“We are relieved by the High Court’s decision, which orders the Federal Government to conduct a fresh review on the grant due for the lost years within 90 days. This confirms Sabah’s entitlement as guaranteed under the Constitution,” he said, and does not expect the Federal Government to challenge the decision.
Hajiji said the decision also recognises the significant role of the State Government, which continuously upheld and asserted Sabah’s constitutional rights.
He noted that the State’s efforts in clarifying historical financial records – including the Share of Growth of Federal Revenue Derived from Sabah from 1964 to 1968 – have been crucial in reaffirming that the intent and effect of Articles 112C and 112D remain unchanged.
“The acceptance of interim payments was made without prejudice to the State’s constitutional rights,” he stressed. Hajiji said that from the outset, in every Malaysia Agreement 1963 (MA63) meeting chaired by the Prime Minister, the Sabah Government consistently and firmly presented its claims.
“We have fought for this issue relentlessly through every formal channel, every MA63 meeting chaired by the Prime Minister and through numerous official correspondences with Putrajaya. Not once have we allowed this matter to rest.
“With this decision, we hope the Federal Government will now fulfil its responsibilities as agreed upon during the formation of Malaysia,” he said.
The Chief Minister said the State Government will work with the Federal Government to implement the Court’s order in the spirit of cooperation and mutual respect, ensuring that Sabah’s constitutional rights are fully realised.
He also commended the SLS for bringing the matter to court in the interest of the public and the State.
High Court Judge Datuk Celestina Stuel Galid, in her decision Friday, also ordered that both the Federal and State Governments reach a mutual agreement within 180 days from the date of the order, as stipulated under Article 112D of the Federal Constitution.

