The Sabah government is calling for the immediate payment of its 40 per cent revenue entitlement from the federal government, starting from the 2022 assessment year.
Sabah Finance Minister Masidi Manjun said the state remains open to discussions on the payment mechanism, but stressed that the constitutional entitlement must be fulfilled without delay.
He said payments from 2022 onwards should be implemented immediately in line with Sabah’s rights under the Federal Constitution, as stated during his winding-up speech in the state legislative assembly.
Under the Constitution, Sabah is entitled to 40 per cent of federal revenues collected from the state, a provision long at the centre of financial negotiations between Sabah and Putrajaya.
The matter gained renewed attention after the Kota Kinabalu High Court ruled in October that the federal government had failed to honour Sabah’s entitlement for nearly five decades, ordering a review of payments from 1974 to 2021.
However, the Court of Appeal later granted a stay of execution on 6 April, pending the federal government’s appeal against the decision.
Masidi said the state government has clarified in a formal letter that the deferment only applies to the period before 2022, in line with the Court of Appeal ruling.
He added that Sabah has already submitted its calculation method for the special grant, while the federal government has agreed to share relevant financial data to support ongoing discussions.
Masidi also stressed that although not all negotiations are made public, discussions between both sides are ongoing through official channels and continued correspondence.
He said there is broad consensus, regardless of political affiliation, that Sabah’s 40 per cent revenue entitlement must be addressed and implemented as soon as possible.
