Sabah continues to demand 40% federal revenue share

Sabah remains steadfast in its pursuit of the full implementation of its constitutional right to 40% of federal revenue, a key provision under the Malaysia Agreement 1963 (MA63). Chief Minister Datuk Seri Hajiji Noor affirmed that the state government will continue to press this demand through direct government-to-government (G to G) negotiations with the Federal Government.

"I want to emphasize that the state government under my leadership will continue to demand the full implementation of the 40% payment through the G to G negotiation process with the Federal Government because the 40% right is our greatest right in MA63, as also enshrined in the Federal Constitution of Malaysia," Hajiji stated during the 32nd UPKO Anniversary and 17th UPKO Triennial Conference.

He noted that 13 MA63-related claims have been implemented, including regulatory powers over energy, licensing, deep-sea fishing, recognition of Public Works Department (JKR) and Drainage and Irrigation Department (JPS) functions, judicial administration, and environmental matters. However, the significant 40% revenue claim is still pending full realization, with a related appeal by the Federal Government currently at the Court of Appeal.

Despite the ongoing dispute, the state government has accepted an interim payment, which has been substantially increased from RM26 million to RM1.5 billion annually starting this year. Hajiji stated this enhanced interim payment will be channeled into infrastructure development and the welfare of Sabah's people, including road construction, bridge building, and improvements to water and electricity supplies. "In short, what we receive from the Federal Government, we will return to the people in various forms of incentives and assistance," he assured.