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Sabah Urges Federal Government to Expedite 40% Revenue Payments
🇲🇾 Malaysia /Economy & Trade

Sabah Urges Federal Government to Expedite 40% Revenue Payments

From Utusan Malaysia · (10m ago) Malay

Translated from Malay, summarized and contextualized by DistantNews.

TLDR

  • The Sabah state government is urging the federal government to expedite the payment of its 40% revenue entitlement for the years 2022 to 2025 and the current year.
  • Sabah insists that these payments must adhere to the original formula stipulated in the Federal Constitution, specifically under Article 112C and Part IV, Schedule Ten.
  • While interim payments have increased, Sabah maintains they are insufficient and do not replace the state's right to claim the full entitlement, including 'lost years'.

The Sabah state government has reiterated its firm stance, demanding the immediate and full implementation of the 40% revenue entitlement as enshrined in the Federal Constitution. This call, led by Deputy Chief Minister II and Sabah Finance Minister Datuk Masidi Manjun, targets payments for the period of 2022 to 2025, as well as the current year. Sabah's position is unequivocal: the payments must strictly follow the formula outlined in Article 112C and Part IV, Schedule Ten of the Federal Constitution.

Sabah's government has never compromised, and the interim payments received at this time are without prejudice to the state's right to claim the actual payment based on the 40 percent formula.

— Datuk Masidi ManjunDeputy Chief Minister II and Sabah Finance Minister stating the state's position on revenue entitlement.

Datuk Masidi Manjun emphasized that Sabah has never compromised on this right. The interim payments currently being received are considered without prejudice to the state's claim for the actual amount due based on the constitutionally mandated 40% formula. He noted that while these interim payments have seen a significant increase—from RM26.7 million annually to RM125 million in 2022, RM300 million in 2023, RM306 million in 2024, and RM600 million last year—they are still considered insufficient and do not represent Sabah's rightful share.

The interim payments are only temporary and do not replace Sabah's right to claim the actual amount, including 'lost years'.

— Datuk Masidi ManjunSabah's Finance Minister clarifying the nature of interim payments.

Sabah's insistence on this matter stems from a long-standing grievance regarding the federal government's revenue-sharing formula. The state views the 40% entitlement not merely as a financial handout but as a constitutional right that reflects its contribution to the national revenue. The establishment of a joint committee between the federal and Sabah governments in November last year to detail the calculation methods and data verification is a step forward, but Sabah remains resolute in its demand for immediate action to ensure its rights are fully realized. This ongoing negotiation highlights the complex fiscal relationship between the federal government and resource-rich states like Sabah, underscoring the importance of adhering to constitutional provisions to maintain equitable resource distribution.

The Sabah government will continue to urge immediate action to ensure the state's rights are fully implemented in accordance with the Federal Constitution.

— Datuk Masidi ManjunSabah's Finance Minister vowing to pursue the state's constitutional rights.
DistantNews Editorial

Originally published by Utusan Malaysia in Malay. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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