PENAMPANG: The Sabah Government will continue to pursue its entitlement to 40 per cent of Federal revenue derived from the state through Government-to-Government (G2G) negotiations, said Chief Minister Datuk Seri Hajiji Noor.
Speaking at Upko’s 32nd Anniversary Celebration and 17th Triennial Delegates Conference on Sunday, Hajiji stressed that the 40 per cent entitlement is Sabah's most significant right under the Malaysia Agreement 1963 (MA63) and is enshrined under Articles 112C and 112D of the Federal Constitution.
He noted that the state's position continues to be conveyed to Putrajaya, including during the recent MA63 Technical Committee meeting attended alongside Deputy Chief Minister Datuk Ewon Benedick.
While the 40 per cent mechanism remains under G2G negotiation and subject to a Federal Government appeal, Hajiji highlighted that the state accepted an interim payment increase from RM26 million to RM1.5 billion starting this year to fund key infrastructure, development, and welfare projects.
The Chief Minister added that 13 MA63-related claims have been implemented so far, covering areas such as energy regulation, deep-sea fishing, judicial administration, labor, environment, and Treasury Instruction 182 recognition for JKR and JPS.
On state finances, Hajiji reported that annual revenue has been maintained at RM7 billion since 2022 and is projected to reach RM8 billion this year, driven by strong economic resilience and RM7.6 billion in manufacturing investments recorded in 2025.
He also outlined ongoing high-impact initiatives, including finalising a 40 per cent equity stake in a local FLNG facility, a 30 per cent stake in two oil and gas fields, and establishing new industrial sites in Kota Belud alongside a Blue Economy Hub in Kudat.
