THE Sabah government remains steadfast in its pursuit to reclaim 40% of the state’s net revenue from the federal government, including compensation for past years of unfulfilled payments, according to its Chief Minister Datuk Seri Hajiji Noor.
Despite appealing the Sabah Law Society’s (SLS) legal challenge to the special constitutional grant provisions, Hajiji noted the state’s positive view of SLS’s initiative, noting its non-partisan and apolitical nature in advancing constitutional rights established when Sabah joined Malaysia in 1963.
“The state government sees the initiative by the SLS in a positive light that is not partisan and not political in the common furtherance of the constitutional arrangements when Sabah joined Malaysia in 1963.”
In a recent statement, Hajiji expressed optimism for a favourable outcome for Sabah and disclosed that state attorney-general Nor Asiah Yusof has been tasked with closely examining the ongoing legal proceedings to clarify the state’s position.
Currently, Sabah and the federal government have an “interim arrangement” in place, which has resulted in a significant increase in revenue—from RM126 mil in 2021 to RM300 mil in 2023.
Although this progress is acknowledged, Hajiji admitted it still falls short of the state’s expectations. He reaffirmed the state government’s commitment to securing more substantial revenue from the federal government than previously achieved.
“We will continue to defend Sabah’s constitutional rights in relation to the existing revenue-sharing formula, which includes the state’s claim for the ‘lost years’ where there has been no review conducted from 1974 until recently.
“Sabah categorically confirms that it will never give up its fundamental constitutional rights in relation to the 40% net revenue special grant under Article 112C and 112D of the Federal Constitution.
“It is the financial entitlement of the state. This stand is very much more than an aspiration,” he said.
Moreover, Hajiji also mentioned that if no agreement is reached, Sabah would activate the constitutional provision to appoint an independent assessor to determine the federal government’s obligations.
This announcement follows the recent decision by a three-member Court of Appeal panel, which granted the Sabah government’s application to intervene in the attorney general’s appeal against a Kota Kinabalu High Court ruling.
The High Court had previously granted the SLS leave to challenge the provisions of the 40% special constitutional grant.
