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DEPUTY Prime Minister Datuk Seri Ahmad Zahid Hamidi said the Federal Government will decide collectively whether to appeal the High Court’s landmark ruling on Sabah’s 40 per cent revenue entitlement.
Zahid said Putrajaya “respects the court’s decision” but will study its impact carefully before making any move, particularly on financial grounds.
“We officially respect the decision made by the court. From the party’s side, we stand with the voice of the people of Sabah.
“From the government’s side, we will study the decision from the aspects of reasonableness and financial capability. But we leave it to the Prime Minister to bring this to the Cabinet meeting for discussion,” he said when met by reporters in Kota Kinabalu on Saturday.
"On Friday, the High Court ruled that it was unconstitutional for both the state and federal government for not conducting the mandatory five-year review of the Sabah special grant under Article 112D of the Federal Constitution between the period 1974 until 2021."
Justice Datuk Celestina Stuel Galid described the 48-year lapse as “the lost years” and ordered both governments to complete a lawful review within 180 days and determine the arrears owed to Sabah.
The court also affirmed that Articles 112C and 112D are binding constitutional obligations, not political arrangements, reaffirming that Sabah’s 40 per cent entitlement is a right long withheld, not a favour granted.
While Zahid did not say whether the government will challenge the decision, many political groups in Sabah urged Putrajaya not to appeal the court’s decision.
For instance, Warisan president Datuk Seri Mohd Shafie Apdal said the high court decision merely affirmed what was already guaranteed in the constitution when urging Putrajaya not to appeal.
“Of course, under the Constitution, they are allowed to appeal. But we hope they will not. The judgment is quite clear, it reflects what was agreed in the spirit of Malaysia’s formation,” he said. - October 18, 2025